All Forum Posts by: Michael Galesky

Ok so my son is being stationed at Wright Patterson this coming spring and I am wondering what the market for multifamily rental is like.

Ok so I took the course, I found the negotiating tactics to be the most helpful part.  Not sure I would purchase the course, 98% of the information was available with the BiggerPockets web site.  On the other hand I never expect to learn a huge amount with any course I take, I look for the little nuggets of gold and it may be that the negotiating segment brought the payday for me.

Thanks guys! I would probably go with this one if it came up again because the cashflow would pay for the troubles. Sure an easy $300 a door would be nice with out any problems at all, but for the ROI that this would have, I think I could deal with it.

Ok so I took to long to "feel good" about a deal when I should have just acted.  A property that I located on Craigslist.org 4 unit rent 2/1 each $625 per with 50% occupancy and a repair cost of about $15k at the low price of $75k.  My calculations put me at $300/door cashflow but it is in a rough area.  I finally called about the property and I found out it just got snapped up by another investor.  I'm on the list for a callback if the deal falls though but I'm not holding out hope.  I have readjusted my thinking and will act on a property with these numbers next time around. Oh and the rate of return calculated at about 13% unless I financed it and then it went to "holly crap" level.  

Mike

You really need to rethink this deal, you are pulling in family with maybe not much more money to give if needed for this deal to work out.  In essence, how bad are you going to feel about yourself if this all goes tits up?    That being said, talk to an accountant that works in the real estate field and or a real estate attorney to make this as safe as possible as far as the IRS is concerned.  I believe there will be tax implications if it is purchased in your name as it will be income for you.  

I would look at having them start an LLC and you partnering with that LLC and taking a share of the final proceeds to make this work. The LLC or your parents should own the home and you do the work. You should already have an LLC to protect yourself from legal issues down the road, and be sure to separate your bank accounts so that the legal LLC is kept legal.

What ever you decide, this should be considered a business relationship first and foremost regarding the property and a fair split of profit and losses needs to be determined in advance.  

As far as the question about LTV you should be able to get about 80@ of value in a note.

Once again, rethink the deal as you wrote it and work it as a business and not a family thing, thanksgiving can be either very quiet or very loud in the future if advantage is taken or perceived taken on this deal.

I gave it some thought over the weekend and decided to drop the deal using that broker, I don't believe I was being taken seriously.  The deal was for a 6 unit all studios in a c class and I factored in the fact that c class and studio would have a higher vacancy cost to me.  I also did a google street view on the property ( out of area for me) and I was looking at a couple thousand exterior work and AC unit replacement, so I was 15k lower than asking price.  As deals go I was lukewarm about it to start with but serious none the less.  I will look at another broker in Ohio if I decide to move forward on this one.

I hav a great guy in Madison, I'll pm you the contact 

Welcome!  And good on you for finding the tribe!  Webinars every week, download the podcasts and listen to them, stop listening to the radio in the car.   My pick for book to read is "The ABC's of real estate investing" all about apartment investing.  Next when something confuses you, look to the blogs and do a search, then if it still isn't clear give a shout on the forum.   

Glad you joined

Michael Galesky

Ok so I made the move for an offer and I have asked for a buyers broker agreement so I can discuss things with the agent and have some confidentiality.  The agent said they don't do buyers brokerage agreements saying that there was really no point to them.  In Wisconsin I am a customer without one and a client with one.  How is it in Ohio?  And what does the group think about this?

Michael Galesky 

Milwaukee Wisconsin area

If I am reading the map right this is a D or worse neighborhood.  Am I correct