All Forum Posts by: Peter Giardini

Sonja... great to see you here on BP. I hope you get through your first deal... and as we discussed if you need direct assistance just drop me an email.

Pete

If the deal pencils out with the increased maintanence and again assuming the rents are correct this is a deal.

Your biggest challenge will be coming up with the funds for the renovation of the fire-damaged unit.

One other thing... in most areas the level of attention you are going to draw renovating one unit of a commerical building, especially one that had a fire may end up costing substantially more then you had planned. Just be prepared.

Best of luck!

Dan... welcome to BP. Great to have you and your expertise available.

Anson... great rehab. Can't wait for the rest of the story.

Uwe... One think that struck me was the expenses being 60% of income. Did I read that correctly? What is contributing to that high level of expenses?

Other than those high expenses, and assuming the income numbers are correct this is a deal I would jump on.

Best of luck!

David, what are the comps for similar properties in that area?

Originally posted by Jennifer Beadles:

I personally love section 8 due to the guarantee of rent. I also figure if our taxes pay for this program, I might as well benefit from it.

Jennifer... I too love Government assisted programs... especially niches within niches. And, I totally agree that since my taxes go into the program... I might as well benefit... even if at times I find myself holding my nose.

Pete

Harry... I hope you have read the leases for the tenants you are about to inherit? The lease for the Section 8 tenant should spell out the total rent amount and depending how your Section 8 program handles things, both the Section 8 and the tenants portion of the rents should be identified.

Once you have taken possession of the property you should contact the Section 8 program and let them know where to send the checks.

Also... I hope your purchase contract reflects that you will be credited with the amount of the security deposits (plus interest if required by your state) and the rents will be pro-rated to the day you settled.

Best of luck!

It just so happens I wrote a series of articles posted here on my Bigger Pockets blog about this very topic.

You can read part 1 here... http://www.biggerpockets.com/blogs/585/blog_posts/5277-working-on-your-business-versus-in-your-business-part-1

Looks like we are all in agreement... Michael Gerber has some great insight and the E-Myth revisited provides insight that every entrepreneur (that would be us real estate investors) must understand in order for our businesses to grow.

Thanx for bringing up the topic!