All Forum Posts by: Chris L.

Doug,
What are the other expenses?
Who pays the utilities?
What are the common area mx expenses?
What is the deferred mx on the buildings?
What is the chance of getting a tenant for the warehouse?
How is the store business doing? Are they solid or about to go out of business?
What is the status of the tenants? Are they current and wanting to stay?

These are some of the questions that I would want to know before I went any further.

Good luck
Chris

(I also disagree with Chris (I know, I don't make any friends here today.) I wouldn't wait until I have a better place to put my money in. I would take my money out of a bad place, put it in the bank so it will be available when I need it to put it in something more attracitve.)

Eddie,
I don't disagree. The bank is a better place to put his money than losing cash flow.
Chris

Mike,
I use the rule of thumb to sell when you have a better place to put your money. If you can sell #1 & #2 and get your money back, you would then look for more deals like #3.
Good luck
Chris

Nick,
The "free" seminar is really a lead to get you to go to the 3 day seminar. Usual price for you and someone else for the 3 day seminar is $495.
I went to the 3 day seminar in May of 08 and found it worthwhile.
However, my biggest issue with the 3 day seminar was that it was a really a hard sell for the really expensive follow on training.
I turned that down and cannot imagine it being worth the money they charge for those.
You could probably save yourself $495 by spending the time reading here on this site and other recommended materials. I enjoyed the 3 day session and made some good contacts while I was there.
Good Luck
Chris

Biennes,
At one point, I was working with 3 agents at the same time.
I finally narrowed down to one based upon performance.
Make them work for you. See what kind of deals they bring you. I treat realtors like "Birddogs."
Works for us.
If you were impressed with this young realtor, I would recommend that you find out what she knows. There is no reason to be bound to the first realtor you speak with.

Bienes,
My advice is keep looking for a buyers agent that will do what you want and need.
Most of the time, the commission is already set when the property hits the MLS. If you go directly to the listing agent, he keeps it all. If you use a buyers agent, they split the commission and the cost is the same to you in either case.
I had to go through multiple agents to find the one that was going to work out for us.
There are a lot of hungry agents out there. Find one that will work for you.
Good Luck
Chris

Winstrol,
Those are great questions.
I have enjoyed the Kiyosaki books but have found the actual employment of those ideas to be much more difficult than he describes.
As far as gettting started, you may want to explore the wholesale business to generate income. There are some on the site that are making that work very well. I have not employed that technique so I am not much help there.
Most importantly, I would urge you to take care of your personal finances. Cut your debt and expenses, generate income by working extra if need be and create some reserves to be able to qualify for a loan for a property. I have found that this is all much easier if you have some of your own assets to invest.
There was a time a few years ago where you could do this without money which created the mess we are in by the way. Times have changed and techniques need to change with those times.
In summary:
1. Keep reading, learning, and asking questions.
2. Explore the wholesale business.
3. Take care of your personal finances.
Good Luck
Chris

Justin,
The other important piece of information that is missing is which party is responsible for the utilities. If the landlord pays the utilities, this is not a good investment.
They might be selling to realize some profit and move on to the next project. These are hard to finance and they probably have their cash tied up. This does not make or break the deal as to why they are selling unless there is an undisclosed issue with the property.
It is reasonable to be wary of any deal; however, you never know for sure until you check it out with your own eyes.
Good Luck

Ritch,
Markle Bank here in the Ft Wayne area will give commercial loans for these properties. In fact, they will even do a blanket loan. Don't know if they work the Indy area or not.
My contact there is Andy Marshall.
He is presently working with some friends of mine that are buying 3 of our properties on a blanket loan.
His e-mail is: [REMOVED]

I am not sure if I can leave that e-mail in or not. If they strip the e-mail before you read this. Send me a colleague request and PM me and I will send you his data.

Good Luck
Chris

Owen,
Gas can be a very large expense here in the midwest. I can't tell you how many houses that I have gone through in the middle of winter with the furnace running and the windows open.
Of course, those were the units where the owner paid for the gas.
Natural gas is low right now but with the fluctuation in prices, that would be a deal breaker for me.

Also, do you have property managment lined up?

I never buy properties where I pay any of the utilities.

Good Luck
Chris