All Forum Posts by: Richard Patrie

Investment Info:

Single-family residence buy & hold investment in Malone.

Purchase price: $36,000
Cash invested: $12,396

3 bdr single family.

Price: $36,000
Repairs: $6,856
Terms: Cash
Rent: $775

All in price with closing costs was $44,493. CoC ROI - 10.23%

Refinanced. Received $32,096. New all-in cost is $12,396. CoC ROI after refi is 13.75%

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

Seller wanted to stay in the house. It was in good shape. Lady was retired. Made cash offer and leased back to her.

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

Found on MLS.

How did you finance this deal?

Cash deal, then refinanced.

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

My realtor is also my PM. We've done 9 deals together.

I am also interested in finding a PM in Potsdam. 

I inherited an elderly couple that has been in the apartment for 20+ years. They apartment should rent for $650 and they paid $450. With my property manager, we explained that we needed to raise the rent to coincide with increased taxes and water bills. We raised it to $500, and that is all they could tolerate. The other unit in the duplex is getting $650, so gross rent is $1,150. I'm still netting 12%, so I'm leaving them alone. Once they die, I'll raise it then. I'm trying to build a brand and reputation. I'm not tossing out 80 yr olds. That's the quickest way to kill my business. 

 Good call. 

So, I am suddenly back on MorrisInvest's mailing list. That guy has some balls. I went to his YouTube channel that I thought was defunct, and see he is still putting out content and recruiting a new generation of suckers. 

Hey Rob,

I'm in Plattsburgh. I don't have any rentals in town, but several in Malone.

I live in NY and have a 3-bedroom house in the Five Points area. I bought it in Oct 2017 and it is being managed by a large property manager. Remote ownership has proved difficult and looking to sell. Currently occupied by a S8 tenant until the end of the year. I don't plan on renewing the lease. New roof in 2017, and I addressed a whole host of issues that the "turnkey" seller never addressed. It is currently rented for $787, but $825 is more reasonable. It was my first property and have since bought 10 more close to my home. I'd be happy to provide details. I'd also be happy to discuss any structured deal including financing. 

Wow is right. The reason the guy can't sleep at night and feels ill is because he knows he screwed up. I bought a house from him in Detroit, and not Oceanpointe in Indy. So the whole "blame the dead guy" excuse doesn't fly. It was my first step into real estate, and I got screwed with repairs that were never made, and lead paint removal. Total disaster. From Nov 2017-Dec 2018 I had nothing but problems with the property. Fast forward to now, and another 10K in the toilet, I am finally cash flowing. I plan to sell the property, but will wait until I recoup some of my losses. I spoke to Clayton. He called me. To be honest, I didn't think he was a bad guy, just a bad businessman. I think he grew too large, too fast, and didn't have the infrastructure in place. I think the guy got overwhelmed, and things fell through the cracks. The folks working for him were definitely slugs. If anything, it has been a learning experience. Since then I've purchased 8 properties in my local area, and it has been relatively smooth sailing. I did get a lot of good info from his podcasts, and he had the concepts down, he just couldn't execute them en masse. Chalk it up as a life lesson. 

Do you buy title insurance for your rental property? Even if your attorney does a deep dive and finds no issues, is it still a good idea? 

They are a liability. Period. They have been bred for violence. You're the landlord. You choose what to do with your property. Why should it be any concern if others don't allow them?