All Forum Posts by: Mat Lewczenko

I just did this to finish up a renovation on our 6-plex, had the money for the reno, but it would have wiped most of our liquid cash. So I got the 0% for 12 months 3% fee check, wrote it to myself(business), and contractors got to work!

I have a 6 unit that was once a huge historic home that was divided into 6 apartments. The quotes I got on just the Materials to divide the six units was from 3-4k per unit.

Let me ask why you are wanting to divide? Just to relieve the hassle of the bill? Just add it plus 10% like a prior poster said based off of a 12 month average, then adjust your costs yearly.

One thing I am considering is having the panels updated and subdivide the circuits so I can easily control the power to each unit, as per labeled. Also, for non paying posted to vacate tenants, well, if they don't pay the electric company (me) then they also get a notice that utilities are about to shut down as well. To subdivide the panel that way is waaay cheaper than individual metering.

Now if the city requires it, well, that is a different story entirely.

Thanks everyone. Now the real education begins.

I have been on BP for quite some time, almost 4 years now. I have been very close to several deal at various periods throughout that time. For one reason or another they never materialized. Then about three years ago I got licensed as a Realtor and started doing retail real estate part time while I had my full time job. After a year, I was able to "Layoff my Boss" and go full time into real estate. The last two years have been incredible, but I never lost sight of why I got licensed in the first place, so I could learn my market, and see a smoking hot deal when one presented itself.

I am ecstatic to announce that we are closing on our first property today - a 6 unit apartment building. I was looking for deals but was keeping my search for 4units and under due to financing constraints, but then this 6 unit popped up on my search and I just had to check it out. It was a foreclosure and a small local bank was holding it and offering the financing on it, only 15% down, no pmi, no appraisal (it had already been done) oh, and 5 of the 6 units are already rented and there is a waiting list for the 6th unit. I kept looking for the "catch" and I couldn't find one.

I kept running all my numbers and with management, expenses, and a capital account for maintenance the COC is 9.47% with just 5 units at 83% occupancy(a month vacant of each unit) and with all six rented, the return jumps up to 23.56% COC.

So today marks a pretty big day, we are really excited and ready to continue to push forward and take action daily to create our life by design, and not by default.

Thanks BP, the community here made all the difference.

Benaiah Grimes - I happened to luck into this one, the property was on our MLS - I was searching for SF, duplex, and more - basically I knew how much I had to spend and was analyzing each property according to my investment thresholds. If it wasn't for the financing available I would have been unable to pick up this property. But back to your question, it was a local savings and loan - one branch. I would compile a list of banks in the area and ask for their asset managers to see if they have any property on their books that fits your criteria.

You may also want to talk to your local small branch lenders. I am closing on a 6plex today which was a portfolio foreclosure. The small bank is providing the financing with only 15% down, for 15yrs at 8%, no PMI, appraisal already done - while the rate is a little higher, all the numbers work incredibly well even with management. Yes, insurance was a little more challenging and more expensive than I was hoping for, but like a prior post, the economy of scale helped make it still work.

Look for small banks (a few branches in your metro) and see if they have any foreclosures or troubled assets.

Jose, one place to start will also be your birthday :) As a principle in your own transactions, you will need to be 18 in most cases to sign your contracts. Other than that, you have started in the best place ever, one of the biggest internet masterminds of true professionals. Read everything you can, reach out and ask questions. Have fun and good luck.

PM me if you have any question on comps in that area, you are in my market, I can help if you need. I have an office in Lawrence and Olathe.

Joel nailed it.

Look to your local market. Find the handful of investors who are doing it and TALK to them, ask them questions and ask them if they are looking for help - you may be able to get a real education for free - minus your time invested. If they say no, ask someone else. Truth is, is that the people out there who are still making money need help in one way or another, you might have to put out bandit signs or hand address mailers but then you will also see what they do on a day to day basis, not just the "pie-in-the-sky" ideals that these coaching programs talk about.

I have paid for coaching, but not until I hit an achievement ceiling and needed to break through it - so I found someone who was where I wanted to be financially or volume-wise. Tiger Woods still has a coach, Jordan always had a coach - coaching is important but will not get you to do the "work" you have to do that yourself.

You will find help locally, you just need to put yourself out there and let everyone know that is what you are looking for. Good luck!

$500/mo can be used better on marketing and getting deals.

In regards to specific fix and flip, the best "book" I ever read on it is free.

I'm sure there are more than one good resource for reading all about one's business, but the best blog I have read about that topic "Fix and Flip" is J. Scott's at http://www.123flip.com

Go to the archives, start at the beginning and be ready to do something crazy like quit your day job and buy an REO :) It's a really great peek into the biz.

All the other books listed prior are great, and help you get into the mindset you need.

Again, I'm sure there are many other BP members with some really good blogs, but J's is the one that I have read from beginning to end and is why I am now Full Time in RE.