All Forum Posts by: Nancy DeSocio

Congratulations, @Jason C.!

Many will make the first property a milestone, but you went for 10.  That's how you 10x it :)  Good luck on your journey!

Hi @Eric M., this is an interesting post, and I'm interested to see how others respond.  I think it's fair to say that most people would rather have more living space than an indoor pool. I haven't found any overwhelming evidence that pools increase the resale value of a property, so I wouldn't expect the value to be much lower if you removed it.  However, the cost of removing it or covering it or whatever other option there is will impact your analysis/budget of the renovation, so that might sway your decision one way or another.  Good luck!

Hi @Joe Sinapi,

If you have strong financial and credit history, they are all friendly :)  I've had a good experience with Pawtucket Credit Union, but some of the other local banks are likely to have similar products to offer.  It's the "relationship" part that takes time to build credibility with specific people and banks, but it's worth the effort.

Do you attend the local real estate meetings?  There is one this Thursday, and one of the topics is loan products for investors where four local lenders will speak.  I'd say that's a good start to building up that network (assuming you are local).  

Hi @An Duong,

Congratulations on your upcoming purchase!

In addition to the items that Anthony mentioned, a somewhat easy start is with the existing property owner.  I also own a 4-unit in Pawtucket, and the prior owner is also an investor and shared a couple of names with me for contractors he used, which I found helpful.  I didn't use all of them, but it's a start if you're comfortable asking at the closing or through the realtor.

I also keep a list of every contractor I've used, along with noting for which purpose and any notes I have from the experience.  You'll come across people you'll never want to work with again, and you'll find that your list of who NOT to use is just as important :)

Good luck on your journey!

Hi @Mike DeMille, congratulations on your initiative to take the plunge back into real estate investing!

I think you are outlining all of the expenses, which is a fantastic start!  So many people forget all the little things that need to be paid for.

For a multi-family, you will likely be paying some of those utility bills that you noted you'd pass onto the tenant.  While you might find a MF that has separate electric and gas meters, water and sewer are typically paid by the landlord.  In addition, snow removal and lawn care is typically under the realm of the landlord as well (you can outsource that to the property management company or outsource it on your own).  I'd suggest factoring that into your expenses.

My only other note is that it may be difficult to predict rents until you actually identify a property.  $1000 is warranted in some areas of Pawtucket and Woonsocket but not all, and it also depends on your mix of units (i.e. one-bedroom apts don't usually rent for $1K).  Unless you are only specifically looking at properties that you know will bring in that income, expecting $3K per month might be high.

Those are the quick things I spotted in your post, and I'm sure others will chime in.  You're on the right track...good luck on your journey!

Hi @Matt Davis,

Welcome aboard to the exciting world of RE investing!  

I would also recommend the RIREIG meetings.  I've met quite a few people at that meeting that have helped me along in my journey.  My husband and I bought two small multis in RI last year with hopefully more to come, and the knowledge of the folks in that room is powerful.

You definitely have the right idea first by making the connections you need sooner than later.  Feel free to reach out with any questions, and I hope to meet you soon at one of the local events!

Hi @John Maynard,

I recently started my first direct mail campaign and faced the same challenge.  My strategy was:

1. Google "real estate yellow letters" to find some of the companies.
2. Review their template examples (they are posted and free).
3. Create your letter.

I know that sounds basic, but once I started reading the examples out there, I could quickly weed out the phrases/wording that weren't my style and found a few phrases that I did like.  It took me about 6-8 rough drafts before I came up with my letter, but I'm happy with it for now.  

I wanted my letter to sound authentic and reflect who I am as an investor.  For example, I wouldn't send a letter that reads "Hurry!  Offer expires in 30 days!"...that's just not my personality....but maybe it's yours, and that's ok :)  

Good luck on your journey!

@Meghan Custer

If he is a numbers guy, put a deal in the BP calculator that shows him the monthly cash flow. Just be sure to find a deal that cash flows more than you’d get in the bank :)

It might take time to get him on board, but numbers don’t lie, and if you keep analyzing the deals and showing him, it might help

Good luck!

@John Moorhouse, I would suggest he join his local REA and find the people who are doing what he wants to do. Once he meets those people, he asks “who else would you suggest I reach out to?” and meet those people. Build your network without expecting immediate results but just know that the results will come.

Good luck on your journey!

Hi @Eli M.,

This is an interesting post!  If you give your tenants any info (phone, email, etc), they will contact you...guaranteed.

However, the issue you present is a reality.  Some tenants won't be happy with the level of service the PM offers, which could be a valid issue or possibly unrealistic tenant expectations.  The question is, do you really care?  And there's no right/wrong answer here, but I'm assuming you do care, as you posted the question.   How we handle this is by scheduling regulars calls with our PM, reviewing the maintenance requests on their website (I assume you have this set up), and checking in on those items that have been hanging around for a while.  This system has worked well for us so far.

Good luck with your journey!