All Forum Posts by: Rome Wells

I am heading out to Elizabeth today to check out a 5 unit multi family house.  If you want to go with me hit me up. @Daniel Koch

I am heading out there today. Hit me up if interested to go together.

Thanks for the info Susan... the pattern that I discovered in this area... from other real estate investor in the area is that it makes sense... but you must know by how much to increase rent though... and that's tough to understand from the rent control town codes that I am browsing around right now... 

However, thanks for the article..

What's the avg yearly ROI for passive investors that you guys offer?

Any1 has any experiences with rent control type of properties?  I found one property with rent control on it.. and trying to make sense if I can truly get the maximum value out of this property.

Rents are approximately for 5 units...

$400, $530, $515, $600 and $694

Upon reading the law code, I noticed... that I can only increase rent by 20% on the first year....  Yet the broker stating I can increase it to between $1200-$1500 because the laws are relaxed in one of the towns where I am hunting for a deal.

I have several options A) I can give cash for keys to the tenant... but let's say I do... give the cash for keys for tenant to move out... the real question is... will I be able to increase rent?

This is what I read... from the town's code..

Rent increases in cases of vacancy.

A.

Notwithstanding any provision of this chapter, a landlord may raise the rent of an apartment when the preceding tenant has vacated the apartment or has been evicted, at a rate not to exceed twenty (20) percent of the base rent received for the twelve (12) months prior, for the first year only. This is to be deemed the maximum annual rental increase allowable on the base rent.

B.

In the event a landlord should seek to increase the base rent pursuant to subsection A, then the landlord must file a statement with the fair rental housing board stating that the preceding tenant has voluntarily vacated the apartment or has been evicted pursuant to state law, and did not vacate the apartment by harassment, threat, or threat of reprisal by the landlord.

C.

No landlord may request or receive more than one vacancy increase in rent for any twelve (12) month period, regardless of the number of vacancies in an individual apartment.

Is my understanding folks that I can not increase rent on 5 units all in 1 year correct?  Even if i was to upgrade that to condo units?

I guess what I am asking here folks is how realistic is it for me to fix and flip this house, by converting it to condo, and increase rents... with building where rent control is in place... and tenant's rents was not raised ... at all for the past 30 years.... 

Note... i realize it's far from me... 3 hours away... but where I live I simply can't find any deals that make any financial sense.

@Lisa Mangroo Lisa thanks for the website tip... i personally find it amazing that you happen to be inter-mix of multiple mindsets, syndicator, wholesaler, money raiser, fix and flip participant, property acquire for your own self. 

I am surprised no one responded further and at least try to strike conversation with you further.  It would be cool to hear your story, how on earth is it possible.. how can you be wearing so many hats in real estate, I find that really cool, so cool that i went ahead and came up with a nick name for you if you don't mind...

To be honest i have no idea if this nick name even exists... but here it goes..

"hybrid syndicator"  

I created cartoon out of it too... if you want to participate in my blog and tell folks your story, feel free to reach out... to me... I have unique marketing method, where I create cartoons.. and folks who i make cartoons out of come to live... directly in the blog, it may a bit corny or gimmicky, but it is what it is.. and keeps folks glued to the screen.... and occasionally thinking that i am nuts...

I always tell folks.. there is a fine line between a genius and insane... I believe i am located on the border of that line... Anyway, it would be cool to hear your story. 

Michael 14 years old is a bit young, but then again when I was 14 I made $100 per hour getting clients to sign up for weekly newspaper.

At the age of 14 is when I truly discovered that I can sell things.

I am high school certified math teacher for the state of CT and looking for someone to take under my wing in a virtual way.

Feel free to join my real estate group to learn about real estate virtually, then show me some deals if you discover any directly in my group, for other investors to see.

In my group I teach real estate and help folks discover financial freedom.

All ages are welcome to my group.  I have no restriction. I need someone like you with boots on the ground.

I am also looking for an intern in math computer science and engineering... someone super smart, to connect spray foam pumps to the cloud in Norwalk CT... is the internship...

Hence if you know anyone let me know.  However with Norwalk ct internship there is age restriction of at least 18. 

My group in real estate is about my journey... the journey towards financial freedom where I teach the secret art of Pivoting the very same art that I used to literally reach our president...  just recently on April 5th... (and I literally describe how that happened in my blog)

Joining my real estate group will accelerate your brain power 1000 times... and help you discover how to learn this field and network with people and prepare yourself for real estate career.

Many folks now days are being out gunned by digital marketing experts... in their own game... (the game of real estate)

Joining my group can help folks not get out gunned.

I must warn you though... I am in this journey for only 3 months...And not a true expert as everyone thinks I am...

The true experts are here... in this group... the wonderful folks who respond back.. 

These who respond back are the ones trust and follow.  These who do not... simply not passionate enough or scared to respond to someone like you Michael... but not me... simply because I understand your age group... since I teach it and certified to teach such age group.

However Michael be careful, no t everyone is like me...  

I would be careful who you meet or connect with.... even in this group.

Hope my advice helps.

Amazing post here folks...  glad to see amazing people in here contributing and handling Joe's questions and concerns. @Joe Ruggiero

Note my advice may not be the best Joe, heck i am a newbie in this world of multi family real estate with only 3 months of track record in this journey towards financial freedom, but maybe some of these tips would help (fingers crossed Joe)

Try doing the following...

Long Term Strategy

1. Craiglist posting

2. Teaming up with clerk in the small court house

3. Digital Media

4.  Use Tax records to see who owns the building and reach out to the owner direct

Short term strategy

Befriend an agent... someone who spends tons of time in local markets, hangs out in court houses and hunting for multi family real estate owners, someone who is looking at MLS listings regularly and foreclosures, get on their buyer's list.

Provide value to real estate agent

• Such as... I am Joe... my value is in helping agents grow..    
• Agent will ask how... 
• Tell the agent you know people and you will refer more people to him/her if they help you... that's one incentive.
• Another incentive is... express long pivotal interest... in what agent does....  
• Dive into agent's regular habbits.
• Follow the agent on twitter, or on linkedin, facebook or quora.

The problem though with this strategy if you find the wrong agent... you can end up wasting lots of time...  which is why ensure you do this strategy using synergy.... meaning in such a way that you can easily replicate it... and pivot this strategy towards another agent...

Or super short term strategy Joe.

Attend one of the multi family meet ups... and talk face to face.. to agents in these meet ups... and pick their brain, create that trust with them.

Hope this helps

Rome Wells

ah good question Nick... the reason why I am trying to find someone who is both a broker and a syndicator is simply because i am trying to find someone who has access to deals...  

• Market now nationally is taking a hit... and it's a bit tough finding deals... What I am looking for is someone not who is going to get the commission... but someone who is going to get paid acquisition fee... for syndicating entire deal... where I get to bring together other folks... who are interested in the deal...
• Working with syndicator who simply gets commission and doesn't help with actually acquiring the deal is basically not what i am looking for.. simply because folks wouldn't trust me to acquire a deal.. without the track record...  
• To break that conundrum, i'd prefer to be the person who would also yes get the small share percentage of the acquisition fee... in exchange for me pulling other investors in the mix.... similar to how David described.  His description and Omar's description of reality motivated me to take action...
• I am simply trying to find the deals... and someone who has track record who i can work with and bring other investors in the mix..

Hope this answers the question @Nick B.

Thank You Nick for chiming in and speaking the truth and asking the right questions.

Will do Omar, thanks for getting back to me... this means a lot to me. to hear back a response from an expert of your caliber level.   @Omar Khan

Latest update... folks and question for all the wonderful folks in this group 

I attempted to do the tips and recommendation of @David Thompson and realized that i am going to focus my strategy towards money raising in areas where it makes sense to invest.  I have also finalized reading vetting multi family real estate sponsor....  I have also realized that Texas is the only place where multi family real estate index didn't drop........ and increased...  (probably due to Hurricane factors...)   

I started following David Thompson strategy in terms of creating relationships and honing relationships... and what I came to realize... is that people do not really trust me with their money... simply because they realize i am newbie with 3 months of learning about commercial multi family real estate and not really taking massive action.

However, i did also realize that people are interested in investing into properties that makes sense... in the process of me attending multiple meet ups...  (so far it's been 4 meet ups )

I have worked also a bit more on my writing style... and reduced ambiguity in my written articles... by streamlining my focus precisely into the direction of raising capital just as David Thompson points out... 

I realized that focusing on one strategy places me into an expert oriented mindset.  I also realized that the tips from  @Omar Khan are on point.

In combination of both tips from Omar and David, I was able to fine tune my mindset into focus oriented strategy of money raising (simply because this strategy is the most compatible with my particular spectrum of expertise)

I have attempted to perform an experiment yesterday in one of the multi family meet ups to see, if someone would even be willing to consider investing $50k with me a guy with 0 track record in the world of buying any multi family buildings...

I told one of the folks in the local meet up meetings the truth and nothing but the truth.  

If any of you guys would like to find out what happened feel free to check out my blog, where i shared the process I took as recommended by David Thompson and correlated it together with Omar's advice and shifted the mindset of the investor to at least verbally tell me... whether or not they would be interested in investing with me....  the response was indeed quiet interesting....  

The response from one of the folks in the multi family real estate meetings was...   I realize that you do not have a track record... i may consider what you ... have to offer...  and when you do end up getting someone who is an export syndicator.. then definitely feel free to reach out to me and show me some deals... that are out of state and make financial sense.

So it appears that what David recommended is indeed legit...  Now all i have to do is find a super duper multi family real estate syndicator with underwriting experience.... who would be ready to work with me... where i get to be the money raiser... and syndicator get to be combination of both... syndicator and the broker.... <---

Which brings me to the next question to wonderful folks in this forum.... 

How realistic is it really for me to find a syndicator who happens to be both a broker... and a deal syndicator... with great track record as mentioned in Omar's article....  

What is the probability for me to find such person?  Is what i am asking non realistic?  Are deal syndicators mostly... syndicators and not brokers?  Or perhaps some syndicators are both a bit of a broker and a syndicator... 

In another words what i am asking is... how likely is it really for someone with 0 track record and only 3 month in the world of multi family real estate journey... to find someone a syndicator with great underwriting expertise who also happen to be the broker and in the out of state area where real estate investment index is favorable from the standpoint of buyer's market?

Note... folks who are syndicators and money raisers can maybe perhaps answer this question.... Note i am not asking about the probability or likelihood of my chances of finding such person... what i am asking here is... about the probability of finding syndicator who happens to be both broker... who has access to deals or connections... in his already established area with track record...

Do such syndicators exist?

•   Or the chances of me finding someone like this is almost the same as attempting to find a needle in the hay stack, and the gruesome reality of it all is that majority of deal syndicators are not really brokers.. and simply can not have both hats on... as the broker and the syndicator... 
• Note response I will receive from wonderful folks in this forum... will help me focus my mindset... and see who i should really look for to supplement my skill... the syndicator..... or the broker and syndicator... all in 1 shot...

• Note what I realized also in my journey is that a lot of folks out there waist a lot of time chasing variety of strategies without major focus....   However... I came to realization that such strategy simply doesn't work... and focus is an absolute must...
• My next steps will be searching for such syndicator & broker in one hat.... however, i do not want to waist my energy chasing the impossible...  Therefore i figured, i'd ask folks to see how realistic is it truly in finding such type of person to supplement my money raising skills.
• Note... i have not raised any money yet... and my mindset is a bit crossed between both the world of a syndicator and a money raiser... I decided to be he money raiser because David's story appear to be the most compatible out of all the other stories i heard on the podcasts, videos and the meet ups.
• I have also realized that my constant non decisiveness in where i want to be.. and the shiny syndrome conundrum to look at things that make sense only when they make sense... are not making it easy for me to make any progress....  Therefore i decided to follow Omar's and David's strategy to become a money raiser and reduce my shiny syndrome behavior into a concrete measurable goal of money raising into properties out of state that make sense... by teaming up with the syndicator who makes sense in terms of complimenting my  money raising skills.
• Note once again i am not a broker, i am not a syndicator and i am not a money raiser at this point, but rather someone who is simply trying to understand the mindset of other folks who are already in this multi family commercial real estate business ... and i was just simply wondering who can help me out here and kindly let me know.. how good are my chances in finding such type of syndicator.... of such caliber level... as I have described here...
  

Folks what I would like to hear from you is the truth

Note to me what sounds better is brutal truth..  vs soothing words...  If you guys tell me Rome Wells you are nuts you can never find such type of syndicator, I will listen and consider advice.. and re-modify my strategy. 

 If you respond to me and say... Rome Wells do something easier and simply find syndicator who will not bother being the broker, but understands mindset of the broker,, but have connections with brokers... and has a track record of pulling deals... then I will consider this strategy instead...

• I am simply looking for a strategy that makes sense folks..  Note there is something else that I must mention... raising money doesn't strictly depend on me focusing myself around strictly single strategy... If i do that then i won't be able to pivot other investor's minds in the direction of investing with me... 
• it requires holistic approach leveraging "The Secret Art of Pivoting"  the type of approach that motivates investors to invest with me simply because it's a lot more attractive options vs what they are doing now locally...   (due to scale factor.. you guys know the drill i don't need to sing my tune here why)
• Note my writing is huge.. insane.. and elaborate... I know i need to tone it down a bit with the level of content that I produce, but it's just something that I am simply used to doing... and old habits are hard to break...   but i am working on it folks...  :)

Looking forward back to hear from you folks... and see what your experiences are in terms of finding syndicators of such caliber... and how realistic my expectations...

Note my question is not about whether or not syndicator will work with me...  that's a different question... that really depends on the mutual intersect of matching personalities... 

I am rather interested in realistic probability of finding syndicator who happens to wear multiple hats such as being the broker and the syndicator all in 1.

Note I am not trying to be needy here... and not trying to offend anyone by raising my questions... i am simply hunting for the truth  :) so this way i save time in my journey and help other folks in this very same forum realize... the truth... 

Thanks 

Rome Wells