All Forum Posts by: Kevin D.

While analyzing a potential deal, I'm creating a pro forma and wanted to see what expense line items that I'm potentially missing.  Can you guys offer some advice?  It's a 7 unit apt building...

Here's what I have:

Fire Insur, Liability Insur, water, mgmt fees, sewer, r/e taxes, gas/electric for common area, garbage removal.  Anything else?

Also, has anyone ever put in a heating system that runs a meter to each unit so each renter pays for their heat.  It's gas/steam heat now.

Thanks!

-Kevin

Wow.  So many great points made in this thread....

There is a judicial sale tomorrow, and my brother/lawyer is going to bid for my LLC (so I don't get "auction fever"). I've narrowed the search down to three properties, and hoping to scoop up at least one. This will be my third piece of RE, but my first one that is solely and investment.

Sometimes getting rich takes more balls than brains.

I know this post was from a while ago, but I recently heard the same thing as far as structuring an LLC. I would be a member with 98% ownership and forming a C-corp in Wyoming State as the other member with 2% ownership.

What are the advantages of doing this other than having an LLC that does not show up on a Schedule C (because there is more than one partner)?

I've scouted out some properties that are on a tax sale (Judicial Sale/Free and Clear Sale in PA) list for later this month.  All of the properties are in areas that I know are good and they look structurally solid.  I don't know much about the inside other than peeking through the front window, but I have the cash to rehab the inside and my goal is to create rental incomes.

I have a couple quick questions from a newbie:

1. Is it possible for a house to be listed as 63 xxxxx Street, but the number on the house is 59 xxxxx Street?  As I drove and walked the neighborhood, I didn't see any house listed as 63, and the only house between 57 and 65 was 59.  There was not a vacant lot.  I know its not safe to assume that the house I scouted is the same as the one listed, but there was a sign on the door that said it was vacant.  Is this the house for sale or is there another way to research this?

2. I have an old LLC from business that I had with my brother that we sold the business assets. My brother signed over the LLC to me. I've read some about piercing the corporate vale... Any thoughts on using this LLC in lieu of forming a new one?

Thanks and if you have any other tips, I'm all ears.

-Kevin

That was my gut feeling cash on cash or ROI... Thanks!

What are the best metrics to evaluate a property's success? ROA? ROI? ROE? If so, what is considered good?

I'm running numbers on a perspective investment and I thought that >20% ROI would be considered highly successful. Thoughts?

Thanks Jim.  So essentially, for every mortgage listed on the property, I would want to see a corresponding release.  If there is no corresponding release, then the mortgage is presumably on the property?

Bradley, that checklist is fantastic. Thanks for the insight.

I'm new to R/E investing other than my home and vacation house.  I'm going to go to a tax sale next month, and I've been trying to teach myself how to do a title search.  Is anyone familiar with the LANDEX software? 

I'm able to find the property that I'm trying to look up, but I'm not familiar enough to confirm if a previous mortgage has been paid off?  If anyone has any insight, it would be appreciated.

-Kevin