All Forum Posts by: Michael Reilman

 To chime in, I went to Michael Blank's event last year. While it was good, the only piece of advice I would give is focus on the quality of relationship rather than the quantity. If I did it over again, I would spend more time with people and not be focused on meeting as many people as I could. 

Hi Nick, 

To add to this discussion, anything that is high dollar, such as utilities so plumbing, electrical panels, HVAC, anything structural, windows can get really expensive. There can be a lot of detail, so for example, knowing how many washer / dryer units there are, age of water tanks and furnaces, etc. 

But also take a look at what you can do to improve the property? Covered parking (big here in Cleveland), what would it take to reposition the property? What are the neighboring buildings doing that this isn't?

When I walk through a property, I take pictures and notes. While very basic and scribbly, it helps revisit and evaluate later to assign numbers to issues. 

Ok, I apologize for not being exact. No, you are never immune to legal action but multiple LLCs keep your assets separated so if something were to happen, the person who is sue-ing (spelling?) can only go after what is relevant to the case, or one LLC.

Can you message me the contact info for the Gap Funder? I haven't heard of anyone able to or willing to do this. I have actually had problems (in theoretical conversation) with the 80% lender being not okay with the remaining 20% being funded. 

I think you should focus more on % rather than the number. Sure, I wouldn't do all the effort to just get 10k, but if you make a return that matches your investment criteria, then go for it! As said earlier, seller financing is a real thing and can be like getting real estate for "free". But to more directly your question. What do you feel is worth your time? Think about the effort that goes into a project like that. Maybe the flip takes 3 months, or 6 months to complete? So is 60k worth it? 

Whatever you do, underwrite conservatively! Something always goes wrong!

Why not instead transfer that 401k into an eQRP so you have more checkbook control? 

@Damion Lupo should be able to help. 

Hi Cory, great to hear this got your foot in the door. 

I would say you should always analyze, underwrite and inspect each property the same. So, as if from a stranger or from a friend. At the very least, there could be a major problem that you uncover that your friend is completely and honestly unaware of. If you closed and discovered after the fact after taking his work on it, it's just feel-bads all-around. This is why people say it's a business decision, all the emotion out of it. 

Otherwise, any way you can separate yourself from others is a huge plus. I dropped off donuts the other day at my property manager's office just as a thank you for doing one of the hardest jobs in real estate. It may or may not make a difference, but just the gesture could make the company care more about my property than normal. 

@Guy Harper is it easy to find the owners directly? Are you using auditor website info or paying for a service? I don’t think I’ve ever heard that finding the true owner was easy....

Anyway, aside from my own questions, I feel the more personable you can get the better. In person is better than a phone call, which is better than an email which may be on the same level as a mailer. If they are anyone of important they probably wont have time for a drop-in, without an appointment. Show up, drop something off and follow up with a meeting scheduled. I seem to get the best response when the person knows what our meeting is about and can prepare for it.

 Large chains like this mean that a big company with a lot of resources spent a whole lot of time researching the area and determined that for the LONG TERM, this is a place where they THEY want to invest a store. You can use this as reassurance that the area that you are looking at is a good idea, since something like Whole Foods probably wants the same things like a growing population. It's not the only thing you should consider, but definitely a metric.

Next level is to get ahead of the curve and learn where big chains like this will build in 6-12 months since those companies predict growth and demand there.  

Hi Michael, 

I wouldn't say C Class is "bad neighborhoods" necessarily. I would consider C Class to be blue collar housing. I have a 6-unit that is C class and it is performing great, with lower income tenants and surrounding area. Also the units are safe, clean and affordable, but definitely not anything fancy. The difference is that the crime in that area is low, and there are several manufacturing jobs around the area to help support wages (as well as restaurants, etc.)

If you mean high crime then yeah this is a concern. I have a general rule of thumb that if I can see the building or neighboring buildings with iron barricades on the windows, then I pass. This is also usually considered D class. Check on google maps street view, and you can also check Trulia crime heat map, or https://spotcrime.com/. 

Finally, I would advise to stay in B class as much as possible. Like I said, C class is fine, but you deal with some dumb problems. I have a condo that is B class and haven't had any issues.