All Forum Posts by: Lee G.

Just hang on to your wallet if you go to a Lindahl seminar. Typical guru stuff -- some great gems surrounded by lots of high pressure sales. Best place to start is grab those books from above and then start doing.

I wholeheartedly disagree. There are lots of 75K homes here in Utah and in Salt Lake City specifically.

If you are looking for stuff in the 75K range, you'll find them in the Hoffman Heights and Rose Park neighborhoods of Salt Lake City. These neighborhoods are safe, decent but working class.

Another example is a wholesale deal that got sent to me today that's in Salt Lake City (but not the neighborhoods above). It's located around 1100 south and 100 east. It's under contract for 55,000 and needs 20K in repairs. All said and done you could sell it for 100K or rent it for about 900/month.

I would avoid St. George because of the lack of economic activity. Yes, lots of snowbirds and tourists but it's not like SLC (and the rest of the Wasatch Front) where there is a diversified economic engine to keep rentals full (there's a reason why large apartment complexes are SELLING at a 6.5 cap or less here).

So as a former Californian, I'd say yes, come invest here. I have. It's been a great decision to be here. And yes, the Mormon influence is "different" but I've never had more respectful, hardworking and trustworthy tenants.

One other requirement I'm seeing with commercial is a net worth requirement, especially if you had minimal cash in the deal. A Fannie/Freddie multi family loan will require you (and your partners) to have a net worh equal or greater than e value of the loan. Fannie/Freddie will allow 20% down on a deal... For most commercial loans , they will ask for your personal financial statements and ask about your experience. Generally, your credit score isn't a factor as much as how much experience and money you have in addition to how good the deal is.

Lots of people don't remember or care to acknowledge that Donald Trump started as a rich man. He is the son of one of New York's top real estate developers. He made most of his money by buying smart and with other people's money, whether it was smart partnerships or a banks.

If your interest is in commercial property and you don't have cash for a deal, your best bet is creating the deal. Check out the syndication threads here for more info.

Current Gross OI is 47,040 annually ($490/month/unit).

Rents SHOULD be 650/month or $62,400. I have it under contract for 390k. They units are 2 beds, 1 baths.

Taxes are ~$3200/year. The rest of your NOI equation is up to you... I have it around 900/ month if you have the rents at 650.

I can email you my spread sheet... Pm me and I will get it to you.

Oh, does anyone have any interest in 8 units in West Valley. The seller will carry for 10% down, at 5.25% on a 30 year am. The cashflows can be mammoth on this... I'd love to do the deal but I have a 21 unit in Logan I'm doing now. #1 thing that sucks about REI is capital intensity.... I'd love to do both but don't have the cash for it.

And here's to my 100th post on BP!

Send me an e-mail at [EMAIL REMOVED] and I'll send you my lease. You might consider joining the Utah Apartment Association. They will give you all their forms, which are attorney reviewed in Utah. Membership is about $100 a year.

It's better to have a longer "over kill" lease than something that leaves anything to the imagination. Imagination is something tenants have lots of and it can cost you money.

An LLC will provide a bit of privacy for you but not total privacy. You'll still be listed on the chain of title as you'll take possession in your name and then quit claim the property to your LLC. You should need to understand the difference between privacy and ASSet protection. A trust will provide privacy while an LLC will protect your ASSets. Frankly, I don't care if someone knows I own a building but I do care about them being able to sue me and take the building from me (but then I don't want to open a discussion on this -- look at the other threads on BP).

I use Sentry West as my insurance broker. Mike Haslam is my agent. His number is

Cell: [REMOVED]
Office: [REMOVED]

I think that covers your questions. Email me if you have others.

CostSeg is best with larger properties. Ultimately, it comes down to math and your objectives with the deal. If you are looking to hold onto the property long term, you won't benefit much from the accelerated depreciation as you'll blow through the best way to shelter your cashflows. If you are holding your property shorter term, then going through the cost seg exercise could be a way to make a marginal property work.

Washington Federal is probably one of the larger portfolio lenders in Utah. You might also look at Community Capital. Most of the CU's in Utah will sell their loans off as they are too small to hold the loans on their books.

What are you looking to accomplish with the trust? At minimum, you should get a LLC formed to hold the property. You should also get your own leases written and ready to go. Which title company are you using? If you are using Premiere, Shane is a good go to guy for legal questions.

I'm in Cottonwood Heights...

We've been buying using a dual agent and I haven't been happy with it at all. The agent can't seem to negotiate the conflicting interests of both buyers and sellers. Going forward, this is a situation we will be looking to avoid.