All Forum Posts by: Bob Collett

Tim

I have also used Aaron Westerburg. He is honest and knows his way around investment properties.

Good luck.

Monique

Here is a different approach to consider. If you feel strongly that you have a solid commitment for $500k, then why not look for an experienced investor who has a great deal, and some money for a down payment; but can not get it done because he or she does not have the ability to borrow. 

So find that investor, and start a bit smaller in the $100k to $200k range, or wherever the median price range is for your target market. Do a couple of these successfully, and people will stand in line to give you money.

Good luck.

Darrick

The question I would have in evaluating is, how much have you invested. What is your ROI. Next, what could you sell them for? Once you know your What you could sell them for, then you can answer the question of what is the effective ROI based upon current valuation. From here you can look at opportunity cost. When working the numbers, don't forget to include how much time you spend, and what kind of risk does your portfolio entail. You might do this analysis on the entire 75 properties, and also on each of the individual properties. Perhaps you might cull the worst performers from your portfolio and replace them with better performing properties.

Just some ideas.

Sounds like you are doing great.

Keep up the good work.

Bob

There are many good inspectors working here, and most have experience working with the older housing stock that you are considering.  However, I would say that there is plenty of post war investment property to go around.

Welcome to Bigger Pockets.

Here is a different thought.... Would you be willing to pay your agent $50 per hour (or an agreed upon hourly rate) to write and work 20 or 30 or 60 low ball offers that are probably "a waste of time", instead of a commission? If not, why not?

thank you all for your insights

If these folks are good friends who trust you... think in the range of 8% to 11%, and possibly a couple of points as a kicker to pay for some costs. There will probably be some legal costs to get it all set up... use a real attorney. Consider looking into having them fund from an IRA or similar vehicle. There are experts who will help you with this.

Then make absolutely sure, that your lenders to not loose money... because losing a friend is worse than losing money.

Good luck.

Jeff, I am not an attorney, and it is different in every state. Be sure to seek legal advice from and attorney. I am sure some NY attorneys will jump in soon.

That said, I typically put one or two properties in an LLC. I form the LLC ahead of time, so it sits as a vessel until ready. When I go for financing, the lenders look to me personally, my track record, my income, my net worth, etc. One other thing... here in Ohio, if I need to do an eviction or go to court for any reason, only an attorney can represent an LLC.

Good luck.

Hi Carlo... Welcome to BP

I am in Cleveland area, but I did some vacation rentals in West Coast of Florida a few years back. I had about 16 units under management including a couple that I owned myself. I did not know at the time that in Florida, renting vacation rentals requires a license if you do not own the properties.  I enjoyed it a lot, but decided to wind down the operation until such time that I get licensed in Florida. Make sure you check with the State where you plan to work. The best source of info is either VRBO or Vacationrentals dot com... they sort of own the market, but lots of good info on the subject in their forums.

Another issue, is that you will be competing for renters with owners who tend not to pay local room tax, but as a manager, you would face stiff fines for doing the same.

Good luck