All Forum Posts by: Account Closed

Welcome @Carlos Bernal!  I'm new here to multifamily investing as well.  It has been difficult for me to find deals around Portland, but i think it's mostly because I haven't been ready with cash or equivalent.

 We did finally get a call back from a real estate attorney today and they stated the same as you but it sounded quite hopeless even moreso because it's a "small amount" of money and not worth going after.

 We have reached out to two different real estate attorneys and no reply from either one yet.

As it turns out, property management puts you at risk like anything else does.  Hard lesson learned.  We just found out 2 days ago that the owner of our property management company has been embezzeling all funds from the accounts.  So this means rent received and processed for June for all of our properties with management will not be distributed to us.  BIG loss there.  All tenants' deposits have been taken as well.  Another big loss there.  This adds up to $8,000 in total for us.  Others will be out much more than that I'm sure.  

There is currently court action against the company and a "receiver" has taken over.  But we are at a loss for what we need to be doing exactly.  Is there a way to fight to get our money that is due to us?  Our contracts with management are void due to fraud, right?  We have tried to get some answers from the receiver and no replies yet...  That's why they're called a "receiver" right?  Ok, bad joke.  Any help here is appreciated.

@Brandon Cooper

I believe you must see books for whatever you can take from them.  Some are excellent motivators.  Rich Dad, Poor Dad gave me that "I can do anything" attitude and motivation.  Sure, they're going to make money selling these books.  But the real ones to look out for are the ones wanting you to attend a class for a few nuggets of information.  I've been reading as much as I can get my hands on.  I stopped buying books because the county library will let me read anything I want for free anyway.  

I implore you to look at the potential take-away value of the material provided in the highly recommended books and see if they can help you, your business, direction, finances, etc.  Keep an open mind for that/those nugget(s) that may change your life.

@Ryan Dossey

I think it's a great thing to have as your signature.  That way if people are interested in finding out more about your or your business, there's a quick and easy link to have a look.

@Jesse Conners

Check out information on purchasing a residential property with 2-4 units.  You can put 3.5% down, live in one unit, and start pocketing the cash from closing if you play the deal carefully.  With a purchase like that, you could toss all of your income directly to savings for the next purchase.  The other units should pay all or most of your mortgage and then some.

It's official now. We have just recieved the keys to our first multifamily property near Portland, Oregon. Between my girlfriend and I, this is property #4. Since we are purchasing properties in our own names, this is #2 for me. I'm very excited to finally make that next step towards exponential growth in investing!

I would like to share some of the details of this win for us:

Location: Wood Village, Oregon (near Gresham/Troutdale/Portland)

Purchase Price: $235,000

Down: 15% (Required owner-occupy first year)

Interest Rate: 4.125% conventional

Projected NOI = (Starting year 2) $24,000

Cash Flow = $8,800

Cash-on-Cash return = 25.1%

CAP Rate = 10.2%

Total ROI = 48.3% (tax info not considered)

These are just preliminary numbers taking 10 minutes to calculate. Not looking too bad, huh?! This is why real estate completely demoralizes other types of investment strategies. An equal 25% return using other strategies is often much higher risk.

To be continued on the Somewhat Savvy Investor Chronicles...

@Michell P. 

Welcome Michell!  Congrats on passing the real estate exam.  I'm actually at 40% with onlineed right now.  Do you work another job but have your license hung with Soleil  Real Estate?  What are Soleil Real Estate's expectations of you?  I'm very interested in finding a place to hang my license and do deals at my own pace.