All Forum Posts by: Lance Jorgenson

Where to hold your Cash Reserve and money you are building up to buy more properties? I have mine in a regular savings account making 0.75% interest.  Is there a better place to put money that is flexable but makes more interest?

@Casey Christensen  I used MACU it was the first time using them.  The person buying my 3 Plex is going through them also

I have a CPA firm i use here in Salt Lake City.  They help me with Industrial company & My Real estate company.  I have a 3plex & 2plex here in Salt Lake City. We are preparing a cost segration on the 2plex so we can accelerate depreciation

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $499,000
Cash invested: $90,000

2-Plex with 3 bed rooms and 2 car ports for each side

What made you interested in investing in this type of deal?

I start looking at properties me and my Agent started running numbers and be put me on a list for properties in the range that I was looking for.

How did you find this deal and how did you negotiate it?

We found it on the MLS and we gave them a full offer and was able to get the deal since I was able to let the seller know that we had bought a property before and wasn't new at this. After they accepted the offer we did inspections and was able to get them to do $5,000 in repairs (repainting, plumbing, flooring, sprinklers, & fence) then got $4,000 in credits for other repairs. But had my handy man fix it all for $2,500.00

How did you finance this deal?

I did it through a local Credit union that only required 15% down 30 year with a 15 year buyout it has a 3.5% rate. Down side it had a 1% origination fee.

How did you add value to the deal?

We had to get tenants into both apartments but was able to rent for $1,600 per side.

What was the outcome?

So far it is has been a good cash flowing property and in increase in value and looking forward to loan pay down and being able to increase in rent as property increase in value. so far it as increase in about $60k in profit here in a couple of years as properties increase will look at refinancing and getting my cash out to reinvest

Lessons learned? Challenges?

That I need to trust what professionals say It was hard for me to believe people are paying the amount of rent for apartments. But i felt it was better to investment in a asset then to leave in savings and stocks.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $345,000
Cash invested: $90,000
Sale price: $450,000

I purchased this property with the plan to Buy & Hold but after going over things with my Agent and he presented me with an opportunity to invest in and could sell this and get a 17% in a 29plex so going to take the $160,000 ($70,000 profit + $90,000 invested)

What made you interested in investing in this type of deal?

It was my first deal and I just had the desire to get a property I had looked for 3 years trying to find the right property, Agent, & property Manager. It seemed liked everything lined up with this deal.

How did you find this deal and how did you negotiate it?

I found my Agent after I went to the Utah apartment association and meet a member that recommend a Agent that specialized in Investment property. I met with him and went over what I wanted above 1 month later he called and told be about the property.
It was list for $354,000.00. I got them to lower the amount to $345,000.00 and to fix part of the roof

How did you finance this deal?

I had to go through my local bank that I worked through with my company since my company had a huge loss the year before since we shut a division down. I had to do 25% down on a 30 year conventional loan. The cash for the down payment came form my Tax return.

How did you add value to the deal?

Over the past 2 years we move two tenants out and raise the rent by $250.00 on the property

What was the outcome?

It made me about $4,000 dollars over the 2 years in cash flow and about the same in tax savings. Plus of the sell making $70,000.00

Lessons learned? Challenges?

When a tenants start to be problematic it is better to move them out and start out fresh I tried to hard to work with them and was to easy and gave to many chances and got burned with having to do a lot of repairs

I would look more for a area or a property that you can add value to. by fixing it up or it is poorly manage.  I would stay away from renting to friends & family. 

@Stacey Mollinet Thanks for your insight.  What is the key piece of your screening process to determine if they will be a good tenant? Credit, Their Work, References, etc...

Do you do your own showings? Seems like that would take a lot of time 

I am interested to here if you Self Manage or have a property Manager manage your properties & Why you decided to do either or? 

Me personal I have a property manager run it mine. I don't have the time from my normal job, Family, & church responsibilities.  Also my property manager lets me know how other deals which gives me opportunities to investment in more properties.  It might be something I look at doing my one Self management down the road but with only 2 properties it is hard to justify the time. 

I started investing in the SLC area 2 years ago. I bought my first invest property with $90,000 down payment 2 years ago it is 3 plex and it has made me around $200 - $300 a month after expenses. With a loan pay down of around $350 each month and saved me on my personal taxes.   I list it for sell last month and 2 weeks ago sign a max offer on it and will make me $74,000 on the deal. I feel great about the money I made on the deal.  Going to 1031 exchange it into a large property with some other investors. I don't feel Utah is the place for huge Cash Flow opportunities but great for appreciation. 

Can i get the link I would like to join