All Forum Posts by: Marco Santarelli

Hi Cedric, I appreciate the post but there is a long history to your transactions and the experience you had in Kansas City with them.

In brief, and as I’m sure you recall, many of the issues originated with the property management company.  The tenants placed by Gary at the time were given discounts that should’ve been unacceptable but as you were informed by the owner of you management company the market had softened at the time.

The market rents that were posted on our website were given to us by the same management company by both the owner and Garry the property manager. Those numbers were confirmed at the time you were under contract, however as the tenants moved out and new tenants were placed they were leased at the van market rents, and according to Garry at a discount in order to move tenants in quickly for you.

I took a quick look at the long history of email back-and-forth but figured I would simply paste a copy of the very last one as a reference for you:

I took a quick look at the long history of emails back-and-forth but figured I would simply paste a copy of the last one with your Counselor as a reference here:

I could go on but that would not be productive in a forum post.

However, as always, my team and I are always happy to discuss the situation as well as anything that can be done to help improve the situation and get your properties stabilized and performing like they should. Outside of market conditions that cannot be controlled, most other factors can.

Feel free to contact me at the office or simply send me a message or email. I’m always happy to discuss any issue.

@Charlie Helo — What @Dustin P. Is likely referring to are distressed situation properties that can be purchased at a discount, fixed up, and assuming you didn’t have any major issues end up with a lower cost-basis (i.e. more equity) to give you a higher return (cap rate or cash-on-cash).

They both work but are different strategies. Your level of knowledge, resources, contacts, and available time will all play in to the strategy that’s best for you.

Continued success!

Hi @Charlie Helo — Welcome to BiggerPockets. :)

That’s a very good question and glad you asked.

All numbers can be verified —and should be.  If the numbers are projected (pro-forma) then you’ll want to reference then again other sources, for example property managers and online rent rate tools for market rents.

Another thing you must do is make sure the numbers you’re being given include “soft” expenses such as vacancy allowance and maintenance & repairs. You must budget for these. Some sellers, real estate agents, and providers don’t give you those.

That’s all part of your due-diligence, which we’ll help you through, as well as a complete home inspection, which we insist you do!

If you’re living or focused on a very expensive market (like CA or NY) then some  deals may seem “too good to be true”, but always keep the context of the property’s local market in mind.

Please post any other questions you may have (and/or contact the Investment Counselor you spoke with).

Continued success!

Thanks for the mention @Jake S.. 😊

Continued success!

Hi @Robert Duffer — Welcome to BiggerPockets!

You should never feel like you’re “jumping into the deep end” - especially when doing a 1031 exchange requiring the timing of dates. Having the right team and asking good questions will help navigate those waters and assure success.

I don’t know what you’re looking at in FL and AL but my team and I would be happy to provide you a pro/con review, if you like.

Those happen to be two States and six (6) markets that we we operate in.

Feel free to post any questions here.

Continued success!

Thanks for the kind feedback @Jennifer Figueroa.  

I'm glad you enjoy our podcast.

Continued success!

Thank you @Jonathan Luna.  Please let me know if you have any questions.

Continued success!

Glad you enjoy my podcast.  Thank you!  :)

I suggest investing in a property with no repairs, as opposed to one with minimal repairs.  You can probably do that with your $15k as a downpayment, but again it's on the "thin" side and it would be better if you had at least $20k or more for this next property.

I've covered the C vs B vs A class neighborhoods quite a lot on the podcast, in interviews, and on our website.  A lot has to do with the demographics of the tenants and the cost/type of properties in the area. That will affect your bottom line over time as well. 

I've you've spoken to our Investment Counselors they would have gotten into those details and the pros and cons of each neighborhood.

Just be careful if you're choosing C-class areas because you "only" have $15k.  It's often advisable to save a little more and invest in better areas.

Continued success!

@Feng Guo -- Thanks for the question.

What kind of information are you looking for exactly?

Continued success!

Hi @Marco Alaimo — Welcome to BiggerPockets.

I love your name!  ;-)

It’s great that you’re ready (kinda) to get started investing in real estate. It’s a great move and one that we all wish that we could’ve started sooner.

The reality is it’s never too late to start, you just need to make sure you have the right team and you’re choosing the right markets in neighborhoods. Something I teach/preach about all the time.

A major question you need to consider is what your investment should look like based on your goals and criteria. If that means being in a solid B+ neighborhood then the $15,000 your house may not be quite enough to get into that. We have this conversation with investors all the time.

To be honest, $15,000 is almost enough to get you into a comfortable B class neighborhood. However I might not talk you out of a C class neighborhood if that meets your needs and comfort level.

Hope that made sense.

Continued success!