All Forum Posts by: Michael Beeman

@Andy W.  

I meant I will need about 30k down to purchase her 10 units. 

@Andy W.

Great job, looks like a good situation to be in. Refi seems to be the easiest way with my lender. Also, the terms and rates seem to be better. Idk why this is, because they are essentially the same thing. Altho I agree not to dip into negative cashflow on one of these notes. IF you find a great deal that is going to cashflow significantly better than one of these properties. Consider "killing the cashflow" in one property or selling that property to reinvest it into another property that cashflows2-5x greater.  

For Example I have a Tri-plex that Appraised at 110k but i only owe 60k on it. The bank will loan up to 80%. So I have approximately 28k in accessible equity. Now I also found a landlord trying to get out of the business. I will need around 30k to purchase her ten units, that will cashflow around 1500/month. Now If I can work something out with her. I will not hesitate to kill my 400/month cashflow on my triplex right now if I can leverage that money into 1500/month cashflow on her properties. It's all a balancing act. 

@John Thedford  Yes, Persistence AND Belief pays off.  Persistence will get you there, and Consistence will keep you there!!

@Brandon Turner Doing the podcast is on my goals list!  I'll fill out an application one of these days soon. I offered on a Tri-Plex this morning. So, hopefully getting that accepted will be my Birthday Present today. That would put us at 15 units! I'm trying to get a hold of an individual that has a large older duplex here locally sitting empty. I want to see if I can swing seller financing on it!  

Ty.. I was able to secure financing through a portfolio lender using our LLC and having myself and my minority partners co sign the loans. The tri-plex was a conversion. It is my least favorite deal bc the costs associated went too high bc I trusted the wrong contractor in the beginning and we ended up with 75k in it and it generates 1600/month in gross rents with our on-site coin laundry. My second deal was a 6-plex that has 5 units filled now, it generates 3400 when fully rented and i bought it off an investor that had it sitting empty, it only cost 60,000 and took about 5k in work to maje it ready to go. It has 4 1br units and 2 2br units.. our third purchase was at an auction, it was a single family home that costed 15k after auction price and renovations. Now, it was a heck of a deal and I didn't really know what I was doing when I put it on the market at 550/month bc it rented in 24 hrs. I was probably 100/month under market. Our upcoming duplex should generate 1200/month and cost us about 40k after renovations. Some of our favorite value adds so far have been separating out electricity expense on some of these old multi family units, and coin operated laundry. I have been lucky in finding these properties by telling ppl what we were doing. We found the duplex and 6-plex off market from word of mouth..

Good morning. In April 2016 I had to file bankruptcy from debt that could not be managed anymore after a divorce. I turned 34 this morning, and I just wanted to say Thank You to everyone at BP. I found your show/website last December; and started my LLC March 3rd. We closed on our first Tri-plex May 15th (got our first tenants on July 1st after some renovations). We close on a Duplex in two days (bringing our total to 12 units); and if it wasn't from all the knowledge and inspiration that I have gotten from BP. I don not believe we could have accomplished so much, so quickly!! We have 11 of 12 units leased up with pre-screened tenants (Ty BP for the tenant screening guide) We have our eye on 5 more units, and we will hit 25 units (that cashflow 100-200/door) in our first year!! So, Thank you so much. I may be a "Newbie" but, I don't feel like it with all that I have learned from you guys!! Thank you So Very Much!!

@Jay Hinrichs

Thanks for your input!  I think you're right. If it isn't broke, than don't fix it..   It requires a lot of extra effort, but as long as we keep managing it well and finding the right deals, I think you are right!

We started our partnership (LLP) in March and moved forward closing on our first acquisition a 6plex in Robinson in May. We now have another tri-plex and a house we bought right at auction off of an estate. We are closing on a duplex this Thursday. Now, I am the managing partner and have the final say, but one of my other partners is very involved. We have out eye on 5 or 6 more units nearby. We are trying to decide should we proceed and hit 17 or 18 by fall. Or should we regroup and let things settle for a little bit. Get our house in order before charging ahead. (we are currently at 90% occupancy).. I think we are leaning towards trying to charge ahead.. I'm curious, what would you guys do? There is no wrong answer

@Nolan M.

My lender usually sends out appraisal offers to 3 or more appraisers to see who comes in at the lowest cost.  But, 650 or 750 sound a lot more like it. My last 3 plex was appraised for 650.  Perhaps you could ask your lender if he sent it off to other appraisers.  

@Courtney T.

In Illinois, it only costs about 800 to start one, and 300/yr to maintain it, so it makes sense for us to have one. But, it may be a cheaper strategy for you if you have a good umbrella policy.

The LLC has a few benefits, some on taxes, I believe. But the main benefit is liability. In the event that a tenant or someone gets hurt or anything happens at one of your properties, they cannot sue you personally and can only sue the LLC, and can only go after assets inside the LLC. That allows you to not be in fear of losing your own home, or automobile, or retirement accounts, in the event that you are sued.