All Forum Posts by: Nicholas A.

Thank you for your in depth reply. 

I will search for the fannie/freddie guidelines on allowing properties to be transferred into an LLC. If you have them handy, feel free to send them over.

I really wanted to focus more so on the risks of this. Are there caveats like certain banks dont allow this or certain states or types of properties or anything at all that would affect whether or not this can be done? Are there time limits on when this can be done?  I am essentially looking for anything that can be a caveat here. If I got called to pay off the entire property at once, I would be completely screwed.

Before I take any action I want to make sure I have all the details and don't run into any problems. 

I own some single family homes and soon to be some small multi family real estate. I want to put them into an LLC, but I don't know when. I heard the banks wont care if you do it and still pay them so they dont invoke their due on sale clause and expect payment right away.

When is best practice to do this? Please list any caveats I need to be aware of.

Quote from @Greg Scott:

I would look to cash-on-cash returns and equity capture as your two primary metrics.  Nobody can gauge appreciation with any precision so just ignore that.

Cap Rate is effectively meaningless on a 4-unit property.  Comparative Market Analysis or comps are used to value quads.  Commercial properties, including 5+ unit multifamily are valued using the income approach.  Cap Rate is a critical component of commercial property valuation.  

 Ok what’s an acceptable rate of cash on cash return and equity in this market? 

What are people aiming for, accepting, and avoiding on small multifamily 4 units or less, single family homes in terms of cap rate and annualized ROI in the Milwaukee and Racine/Kenosha Wisconsin areas?

Numbers would be before the property is stabilized and when its stabilized.

I am searching for wholesalers to connect with so I can get on their list and see what properties they have available.

I am looking in the Racine/Kenosha area in Wisconsin, primarily 2-4 unit buildings, although not strictly limited to that.

If you can help and would like to connect, please send me a message or reply here!

Quote from @Payton Haight:

Hi Nicholas, When you hear grades for properties, investors are usually referring to the neighborhood rather than the house itself. The grading system is subjective and unique for each market. As you mentioned in your post, A class B property to one investor might viewed as a class C property to another investor based on their own subjective criteria. 

In general, 'class A' neighborhoods are the most desirable areas - commonly associated characteristics are: homes in great condition, low crime, and a good choice of nearby amenities. Class D would essentially be the opposite of that. Class B and C would then be some mix between those. 

From your post, it sounds like you are trying to grade the condition of actual properties themselves rather than the neighborhood/location. Is that correct? If so, I am curious why are you looking to assign grades to the properties? Is it for tracking in an Excel file or something similar? I suppose you could establish criteria for a grading system for houses. Something like class A properties are in perfect condition and need no work. Class D properties would be a full gut, etc.

Payton I am more focused on the neighborhood and even the block, not so much the actual property itself. 

I am trying to find a rubric of sorts that I can use to determine the grade of a property. I seem to hear what people think is a B or C property actually varies. Somebody told me that each unit between 50-100k would be a good marker, with good rent growth.

Ultimately I want to be able to figure this out so I know how to grade each property and each area. I am currently looking at Racine, WI.

A tenant of mine has said the dryer stopped working. She sent me videos and it’s just not turning on when she is pressing the button to start a cycle.

I had her power cycle the dryer and check the breaker box to make sure it was getting power, check the door to make sure it was shut and basic things like that.

My question: is it worth it to send a repairman out to the dryer or should I just buy a new one for like 300 bucks? What about with washers? 

Quote from @Stephen Morales:

I would look into building targeted list using a some property software. 

Most of our users for example find success pulling pre-foreclosure leads, high equity and tax lien property list. I would go for 10,000 properties per month minimum that you can call on or have your VAs do it. 

Other than the other outbound ways you mentioned, you can invest a lot of time into creating your own site and doing SEO to drive traffic. You can do PPC ads for inbound leads or even PPL but that can be $150-500 for just a warm lead. 

how much do you pay your VAs? Where do you source them from?

I see people online who invest on a large scale into residential and single family real estate and I am wondering what criteria they choose to analyse deals.

What methods do they use?