All Forum Posts by: Paul Sorgi

@Jared Thomas states it best.  Do you have a PM on the ground?  or are you trying to manage this property from afar?  

Do you have nay pictures?

Can a visit be arranged? 

Here are a couple ways to get to the 25%-30% down payment.  One see if the seller will hold a second mortgage.  Two look for investors to come up with the down payment and give them equity for their contribution.  

Also check out this forum post 

https://www.biggerpockets.com/forums/432/topics/369145-commercial-financing-questions-101

@Norberto Villanueva well said.  

I was thinking the other day about Guru's and those in the business who offer "mentoring" at prices that are equivalent to the average Americans yearly salary.  For example an investor starts a flipping business and a year later he is offering a course on wholesaling, then flipping homes etc. I have always wondered is it their desire for more money or is it easier to find mentorees than it is to find deals? 

@Steve Sapowsky I think you answered your question.  If you think the cost of fighting is less than an additional well and your tolerance to the risk of losing is high then go for it.  If you lose you will be out all your legal fees and still have to install a second well.  Being on the wrong side of the BOH is not always a good thing either.  

@Anthony Navarro it appears you are on the right track with the house hack so stay the course. When seeking advice on when to buy I can only say do not take any from those who don't do.  The market has rebounded from the crash of 2007 and the bottom of 2009 and nobody knows how high it will go or what will bring it down.  There are deals out there you just have to search for them.  I always apply the 3 Ds to finding any good deal.  Death Divorce and Debt.  

Being on the West coast and in the Bay Area (disclaimer know nothing about the area) and your reference to the 1% rule my suggestion would be to look at the properties form a different set of criteria.  For one how much can you put down?  Cash flow always improves when you increase your down payment but at the same time your cash on cash return decreases.  So the deal looks different to different people in how they analyze it.   You have to set your criteria and comfort level then buy according to it.  

Nice to meet you @Joshua Olitzky  Deciding where to invest is a great first step.  I think it depend on how you are going to manage the property.  If you are going to do it yourself then the closer to you the better.  Once you have narrowed your area you can focus on finding a deal that meets your criteria. 

@John Korn I am a little more conservative.  I would use 10% for repair, 10% vacancy and add 10% for property management= $322 even if you are doing it yourself. The 5% on CApex is good if you are covering the big items in the rehab.  It's better to have more left in your pocket than be looking for more cash when a tenant leaves you high and dry. Net is now= $175  I would stick with the 50k 

@Juan Zavala my experience here on BP would lead me to suggest to you that if you supply more details here you will increase your contacts.  I think you may want to post in the marketplace as well. 

The simplest way would be to open a joint bank account.  Run all business expenses through the account and if needed  fund the account 50/50.  I have  done it by holding a property in a trust and opening an account in the name of the trust.