All Forum Posts by: Seth Wilson

The above posters have good remarks, but....

If you want to easily rent a unit, find out what your perspective tenants want, then give it to them at a fair price. This discovery phase happens PRIOR to purchasing the property. 

Then CL and a yard sign or whatever, then get all of the money.

Joe seems to be leading you the right way. So all I have to contribute is that: 6.5% is brutal, I'd pass there are much better rates out there. 

Read the book "Commercial Mortgages 101" and follow every step in it! Then call every bank that you can, and ask to speak to the VP/Head of Commercial Lending. When you talk with them tell them about your project and ask to send them they loan package that you made from the book "Commercial Mortgages 101".

I did this on my last property and had 3 legitimate 'Intent to Lend' Letters within 6 hours. I picked the best in the litter and closed on the property. 

Oh, and verbal agreements ain't ****!

Good luck let us know how it goes!

The fund managers make money on Fees! Fund managers have a number of investors that are hot-to-trot and have money burning a hole in their pocket, the managers have to buy something or else they won't get their fees and they 'overpay'. The fund managers also have a lot more money they are holding back so that if the asset becomes a liability they have a life line, or they can just ponzi scheme it.

I wholly reject the 'outside 435 loop', I own multiple, multifamily buildings and I make a lot of money on them plus force significant appreciation. Yes, there are some areas that are dicy but welcome to America! I have a solid PM and know my market though, so I can buy in areas others wouldn't because they aren't familiar with real estate cycles, or aren't willing to do the work. 

With that yes, I know a PM as well as an attorney that is an old pro are KC real estate.

Finally, don't believe everything you read in spite of their intentions. 

As long as he didn't lose the duplex, such as a foreclosure, I wouldn't see an issue with it. I would suggest a sit down eye-to-eye conversation about how the new sheriff is going to run this town. To include; a month-to-month lease for 6 months or so, as a probationary period ( I wouldn't call it that but I'd make sure that he understood it as such) and of course make sure your leases are tight and the other tenant knows he isn't the owner any more. 

Good luck, let us know how it works out!

You will probably need to gut the unit--to include taking out the drywall and subfloor. I think the previous estimate of $10-15k is about right on. It may take a few DAYS just to get all of the trash and other crap out of there (maybe even two dumpster pickups). 

I don't know the entire situation but I would negotiate at least $20k off of the sales price or take at least $20k seller credit (which I always prefer). Leave the tenant in place for the sale then start eviction the day of closing for "unkept, untidy, unsanitary conditions/excessive pets/excessive damage to the unit...etc." 

Just my two cents. But if you are this far into the due diligence might as well keep pushing and see what you can negotiate, if the sale does fall through it will be a good lesson and practice on your next one!

I have two 12-units in KCMO, what are you paying for your insurance? Maybe I am paying too much too!

Why don't you work for your uncle for a while and learn the ropes? That sounds like an excellent opportunity for any aspiring real estate mogul. 

Yeah use the search function.

But if there is one piece of advice that I wish I was given it is this: "It is better to have no tenant, than a bad tenant."