All Forum Posts by: Pavlos Kasselouris

I was looking at a deal of a wholesaler, and after negotiating the price, I wanted to send them an written offer. In their AS_IS contract for sale, they were listed as the seller, and they listed them self's as the escrow agents for the deposits. In addition I had to pay the title expenses, but they wanted to use their title company. 

I'm used of transactions with state approved contracts, since I'm a real estate agent, and all these processes make me feel uncomfortable. This is a double closing deal but again it doesnt make any sense the way they have structured and use the contract. 

Whats your opinion? 

@Haseeb Awan @Michael Long @Jonathan Beemer Thank you very much guys. These number can be improved tremendously, but still are good compared to traditional investments.  

I wanted to give a final update since I just closed on the cash out refinance. The property appraised $140.000. My total all in was around $120K. The property has been rented out since end of June for $1200.

So roughly I left around 20K at the property which will produce around 4K in one year after all expenses (vacancy, maintenance, cap ex etc...)

I know I can do better so my goal is to improve these numbers.

I already bought my second auctioned property which I already have rehabbed and put a tenant in. I'll create a separate post for that. Currently looking for the next deal...and how can I do this full time...time to find a mentor, lol

@Jon S To answer your questions, I'm a numbers guy so I do want to track profitability and various other parameters, but not that super complicated. At the same time my CPA is expensive (but really really knowledgeable), so the more I can save for him the better for my pocket.

Currently I dont manage multiple projects, but my goal is to slowly scale up, and plus my rentals do have requiring expenses.

I dont mind the monthly of bi-monthly exchange of QB files, but a cloud does have its benefits.

I do use rentec direct for managing my rentals and will continue to use it.

@Jana Cain Thx for your feedback.

I'm trying to put together as much information that I can to establish the best automated system possible and certainly providing access to the bank statements is a must. 

But since what I'm doing (rentals, rehabs, sales) gets a little too tax complicated I'm still gathering information from other investors. Hopefully more people will provide here.

The truth is that I'm still deliberating whether to get QB online or desktop...

@Dave Holland

Thank you for your feedback. If my business was only rentals, yes I would stick to the online version, but because I do rehabs that I might decide to keep or sell it gets complicated with capital improvements etc... and that's why I'm leaning towards desktop version.

I just reached a point in my business that I need to improve my bookkeeping systems and procedures. I feel that with the 5th property I can support the cost of buying Quickbooks.

BUT I dont want to spend hours and hours training to learn it. I will do some seminars in Lynda, but that just to get a taste. I decided that I will hire a VA from upwork ( I already found one and interviewed her) to set it up and maybe do once a month my book keeping.

My questions are:

1) She said that she will create a QB file and set up the accounting system in her computer . Once she's done she will send the back up to me. Then I can restore it and check it. Also, each month she will update entries in QB file and send the back up. Same deal, I will restore and check her work. Does this make sense?

2) What information and in what format should I send her? I was thinking the a. Chart of Accounts that I want to use (I took this from J. Scott when I purchased his book) b. bank transactions and cc statements c. export in excel format from my PM software (I use RENTEC direct)

Any more advise you think of in automatising my bookkeeping procedures I would appreciate.

Alex,

I'm an agent and an investor in the area. When I looked into these older multifamily deals (even the one you posted) and run the numbers, plus the aggravation of running these lower class properties, I prefer SFH's in B areas and C+.

My model is the BRRRR and suits my target numbers which is more than 12% CoC ROI.

As far as this deal: 70K per unit is a lot...especially for a old property like this. I would only concider it for 50K per unit, but again it all depends on the exact condition of the property, the deferred maintenance items.

Contact me if you would like to talk about the area, and I might propose to you either an off market deal that a friend of mine prepares to put on the market (If I remember correctly a 4plex and a duplex)  or a different strategy that works for me at least with auctioned homes. 

I'll be in town this weekend to visit one of my rehabs in South Daytona, and meet with my contractors. I dont mind if you wanted to swing by and see what I do. 

@Peter James make the improvements that make sense now. For example exterior paint and updating the baths arent necessary unless it will increase the rental rate. If it does, how much? 

Will any of the improvements minimize maintenance calls?

Will you refinance after these improvements? 

So basically you have to decide, depending on what are the effects of what you will do.