All Forum Posts by: Michael Bender

Thanks for all the feedback. Ideally, I'm not looking to upfit or renovate anything. 

I think I've spotted an Absolute NNN property for sale at the top of my price range that seems to cashflow around 130k/year with today's rates and putting all my equity back into the property for a down payment.

The lease is with a well known value chain restaurant and has operated there for 15 years. I'm familiar with the area and know it to be growing. However, the lease expires in 2 years.

Is it common to get a lease renewal as part of the purchase? My bank is saying they'd need to see that to finance it.

Does any have experience with Absolute NNN leases and renewing them that can offer any tips or gotchya's? Any negotiating tactics I can consider with the seller? I'm not at all familiar with this type of real estate transaction. What are some common terms of a deal?

I'm seeking advice and stories from anyone who has jumped from SFH to multifamily homes. I have 3 properties that I'd like to 1031 into a multifamily building. My primary goal is cash flow and to keep personal time involved low.

My homes are valued at $1.7M and I have around 770k of debt. 

What can I reasonably expect to buy with this and what range should I expect from a cash flow perspective?

If the range is 50-100 unit building, do you think this is manageable as a first-time multifamily? What's different about managing a building this large?

Should I be able to afford a full-time property manager?

What's the best part about owning a large multifamily?

Whats the worst part about owning a large multifamily?

Any lessons you are willing to share as I seek to make the switch?

Thank you

Thanks Alan... I've looked at LoopNet and have heard mixed reviews about the site... generally leaning towards negative on what to expect in a good deal. How else do you get access to opportunities to analyze?

I'm looking for feedback on two items. Expectations on what I can get, and experience needed to execute.

I have two scenarios. I'm selling one property and cash-out refinancing 3 others for a total downpayment of ~$350k. If it makes sense, I can probably sell all SFR and have a downpayment of $650k assuming I can get it done within the 1031 timeframes.

1) How many units/doors roughly should I expect out of a $1.5M or separately a $2.5M property? Location agnostic, I'm in NC so I would love to keep it over this way if possible, but not a deal-breaker.

I definitely need the building to afford property management. I don't want this to be my day job. I'm just looking to upgrade from SFRs into a property that cash flows. I'd love opportunity to put in equity (I know how to do construction, GC projects, etc...), but would look at that as the upside. I mostly want cash flow to supplement income with minimal distraction once the deal is done in order to grow my startup business (not real estate). Is it reasonable to expect 5-8k/mo of cashflow with minimal involvement in a property that had upside potential to force appreciation if I put in work? Banks like me so financing should be straight-forward. 

2) What experience do I need to acquire or find outside of a solid property manager to limit my risk? What would be your top concerns for someone with only 4 years of 3 SFRs landlord experience jumping into the property afforded by either option stated above in the first question? 

I'm not a stranger to working on homes. One of my rentals was a foreclosure in terrible shape I rebuilt myself. I don't want to do this work, but I'm open and comfortable being GC. I've run my own business for 12+ years so feel comfortable managing contractors/teams to get results. 

I've been looking at this property and trying to find out more about it and all of a sudden zillow says its up for auction tomorrow morning.

Is there anywhere I can go to find out more valid information than Zillow? It says its a non-judicial auction. I've looked up what that is online but don't have a good sense of that really means.

I'm just looking to chat back and forth for the next hour or so about this property if anyone is interested in teaching a newb a few things quick!

http://www.zillow.com/homedetails/706-Tyler-Rd-Raleigh-NC-27604/6386884_zpid/

Your right. I got dates mixed up. I actually went to the meeting that was this past Tuesday. My sense of time gets really skewed when I try to move to fast.

Bryan Hennen I went to my first TRIEA meeting last Thursday. It was great meeting the people. I actually learned about something there that I have an open question about on a thread, that historically seems to have produced a lot of polarized views. It was about using a High Cash Value Participating Dividend Paying Mutually-Owned Whole Life insurance policy as a tool to implement the infinite banking concept to help build a long term estate and provide some flexible self lending options in the future as the cash value grows. I thought the next main meeting was Wednesday for some reason. At the last meeting they decided to make this next main meeting free for visitors so I'll definitely be there. I'll have to buy my membership after this meeting if is seems worth it. Will you be attending?

Hello BP community! My small software company has decided to pivot towards Real Estate since Raleigh seems like such a great area for RE and seems to be bottomed out and just starting the uptick of the next wave. New construction everywhere, tons of new tech jobs flowing in and lots of local government support.

I found this site about 3 days ago in trying to weed through all the guru sites and find some honest to goodness information. Finally someone that isn't telling me "I can get rich quick with no money down!"!! Its a very refreshing find and I've already found some of the info to be extremely valuable in getting some bearings on strategies and plans to get into the real estate game. I look forward to interacting with you guys and gals on the boards!

Thanks

Kevin R. Thank you for such detailed information. I recently found out about this concept from a local real estate investment group. There was an insurance group there saying the tool to use was called a "High Cash Value Participating Dividend Paying Mutually-Owned Whole Life Insurance" policy. I have to admit, it sounded like a scam and to good to be true. I have done a lot of reading online and it does not seem like a scam and that it can be a great tool for the right situation. However, other than the groups from the meetup I've talked to two CPA's and neither of them knew about it. I am still tracking people down, attorneys and wealth managers that I know to get their take, but I'm wondering why more people don't understand this concept and push it as it seems fantastic. Do you know if there is a different general name to call something like this? I'd love to actually link up with a CPA, Attorney and Insurance broker that all understand the concepts here and using the whole life insurance as a tool to realize the concepts.

Does this work from a business stand point with the same benefits? If I have a business, say an LLC with one other member and we want to hold our operational cash in an account that allows us to do these things like the high CV whole life, but want to be able to give or pass the death benefit on to our employees... I'm not sure exactly what I'm getting at here other than trying to leverage the two together. Any thoughts?