All Forum Posts by: Rodney Lorenzo

Hi Dominick,

Many were impacted by the pandemic such as myself and the only issue I had was with small MF properties, where banks frowned upon my UI status. In other words, they want you to be an investor, but still have a 9-5 job just in case all of your tenants leave and you need to pay the mortgage (as if that's a common occurrence). This is why I went commercial, because lenders there focus more on the revenue the property generates.

Wish you success!

Rodney

Peter, what's the best place to start to look for a partner? CT REIA maybe? Leveraging money, experience and time is recommended I hear.

Thanks!

I live in the Northeast which is primarily tenant friendly. I've heard that it is recommended to invest in landlord friendly states like TX, FL, GA, etc. As a first time investor, I'm weary about my first investment being out of state. I've heard horror stories about tenants taking advantage of the COVID moratoriums to buy boats, cars, etc. In the Southern states it seems like the eviction process isn't as troublesome. What are you thoughts?

@Max Pryor I think you have plenty of good advice on here. $25 in 10 years is something for those tenants to celebrate. Not all landlords are this generous. Some only care about where to park their cash and have no problems letting a tenant pay 1/4 to 1/2 of market rent. Personally, as a buyer, this has caused me to be disqualified by lenders because they use the current rent roll. You have an advantage that you have separate water meters and don't have to invest for these modifications. I think a 5% increase is fair, however, I like @Bill Brandt idea better - meet them half way between current and market. Any time a tenant leaves, there's an opportunity to increase cash flow. A 3% yearly increase should be in order

Hi William, yes let's chat when you get a chance. I'm not focusing on one particular kind of property, because cash flow is what's more important right now. Small, big, mixed use. I'm open to all. You're right that I need investor-minded realtors, cause the others I've had have not been and it shows.

Hi Peter,

Unfortunately, I work in the tourism business and it hasn't come back in full force since the pandemic, so cash flow is paramount. I have very little debt and don't mind taking risks. Yes, a partner would be something to consider. I'm ruling nothing out. The other option would be to buy a smaller property all cash and avoid lenders and banks

Hi folks, I have over 235K that I was looking to invest. I've read books, watched Youtube videos and listened to podcasts. I've grown my money by investing in the stock market two years ago so I don't mind taking risks. The problem is, that I've been unemployed now for 1.5 years due to the pandemic and have decided to go commercial because it's not so much a issue with these properties as the smaller 4 units or less are. I've had two deals go South because one lender changed the terms as we went into contract and upped the down payment from 25% to 34%, wiping out any cash reserves needed. Another was a 3 family in Norwalk, CT at the top end of my budget, and I was startled when the current rent roll led to a low DSCR, disqualifying me from the deal. One deal was rejected in Stamford, CT simply because the seller didn't know who my lender was and didn't want to take chances with a newbie.

I don't mind starting out with a 5+ property as my first deal, but it seems I haven't gotten anywhere because of the interest rates being offered and me getting very little cash flow. I might have to depend on the cash flow as my only source of income. Plus, this market isn't helping either. I've dealt with lazy real estate agents (I get financials from the listing agent quicker than they do) and brokers not shy of tackling on loan fees. Should I just accept the lousy terms that they offer or just wait for this market to cool off a bit? I'm eager to make an acquisition!! I'm thinking of waiting for the winter. Less competition maybe?