All Forum Posts by: Pierson Tedeschi

Thats a nice coc number. Out of curiosity, what year was the building built? The reason for the question, is that after the Surfside collapse, the county is being extremely strict with 40 year recertifications. If the building hasnt done that yet, I would put a little aside each month for when they do. 

Happy Investing

This can be a very lucrative route As long as you know how to turn these businesses around. 

If you acquire an underperforming one, increase revenue and fix the fundamental issues, I’m sure that you can then show a bank your operating statement and get a small business loan but I think with a small business loan, the money provided is strictly for use within that business. I’m not sure, that would be something to ask a bank. 

Sorry Rick

With tenants in there, I try to save their privacy for them. 

Originally posted by @Stacey C.:

Hello BP! Today my offer was accepted for a quad. It’s my first REI deal! All units are tenant occupied and the rents cover my estimated mortgage and maintenance fees and that‘s with me living there rent free! I’m super excited. 😆

 Stacy, Congratulation son the getting the offer accepted. Great property to get your feet wet with. 

@Skylar Dejesus This is an amazing story. Congratulations. I love to hear stories like this where hard work and persistence pay off. Keep it up 👍

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $415,000
Cash invested: $115,000

Triplex in the heart of Little Havanna.
Fixing it up to force appreciation. Then looking to re-fi the cash out and move on to my next deal.

What made you interested in investing in this type of deal?

I have always been around investors who use the BRRRR method and once I started listening to the Biggerpockets Podcast while working as a commercial real estate agent, it clicked so I dove in.

How did you find this deal and how did you negotiate it?

My first deal took me some time to find and get comfortable with. I would get out of work and spend 4-6 hours analyzing and overanalyzing everything that hit the market the day before.
This went on for the better part of a year before I found the right deal.
I had a target number that I had to buy at in order to get the cash on cash returns that I was looking for.
Luckily I was the only interested party to see the property so the seller met my needs.

How did you finance this deal?

This was my first time buying a property and I was not able to get the front end ratios to work for an FHA loan so I went 27.7% down to make the numbers work.

How did you add value to the deal?

2 out of the 3 units were extremely under market for rent. The idea was and is to renovate, then lease out for fair market rent.

What was the outcome?

This is an ongoing project.

Lessons learned? Challenges?

My main takeaway has been to truly know my expenses. I had done all the research I could before closing but there were expenses that came sooner than expected and higher than expected.
The biggest takeaway, never buy an investment property with a pool.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did use an agent who was also an investor and I used his preferred lending agent who helped me secure financing.
Give me a call if you would like their contact information. It made for the perfect team for my first deal.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $415,000
Cash invested: $115,000

Triplex in the heart of Little Havanna.
Fixing it up to force appreciation. Then looking to re-fi the cash out and move on to my next deal.

What made you interested in investing in this type of deal?

I have always been around investors who use the BRRRR method and once I started listening to the Biggerpockets Podcast while working as a commercial real estate agent, it clicked so I dove in.

How did you find this deal and how did you negotiate it?

My first deal took me some time to find and get comfortable with. I would get out of work and spend 4-6 hours analyzing and overanalyzing everything that hit the market the day before.
This went on for the better part of a year before I found the right deal.
I had a target number that I had to buy at in order to get the cash on cash returns that I was looking for.
Luckily I was the only interested party to see the property so the seller met my needs.

How did you finance this deal?

This was my first time buying a property and I was not able to get the front end ratios to work for an FHA loan so I went 27.7% down to make the numbers work.

How did you add value to the deal?

2 out of the 3 units were extremely under market for rent. The idea was and is to renovate, then lease out for fair market rent.

What was the outcome?

This is an ongoing project.

Lessons learned? Challenges?

My main takeaway has been to truly know my expenses. I had done all the research I could before closing but there were expenses that came sooner than expected and higher than expected.
The biggest takeaway, never buy an investment property with a pool.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I did use an agent who was also an investor and I used his preferred lending agent who helped me secure financing.
Give me a call if you would like their contact information. It made for the perfect team for my first deal.

Hi All,

I am looking to change my insurance policy and an insurance broker that I am working with has brought me a surplus line insurance policy. 

I am not very familiar with this kind of insurance and wanted to see what others experience with this kind of insurance has been.

Regards,

Pierson 

Hi All, I am writing today looking for some help. I have a tenant who is now very late on rent, I have been lenient in the past with a few days here and a few days there. I have no hit a breaking point for collecting rent and need to evict. I am sure there are a lot of people who have evicted, I’m just looking for some help on how best to proceed. Any tips or pointers would be greatly appreciated. I have drafted the 3 day letter for non-payment and I understand that I must hand deliver the notice. What happens from there? Thank you, Pierson

@Calus Glispie I’m sure this is true but at the end of the day, all the power here is in the hands of the seller. How high is their motivation level? Sounds like they are fairly motivated but not enough to have their property tito e up under contract with only a $1 guarantee.