All Forum Posts by: Richard Phillip Lewis

 Very Good Idea @Robert Krieger! Thank you.

It seems most of the multi family properties I’m looking at have tenants that are month to month, so they are ready to give notice to if necessary. 

It does make sense on an owner occupied duplex to close in 60 days and give notice too both tenants 30 days notice for owner occupied unit and 60 days for non owner occupied unit and if all goes well they would be out at closing. Maybe even give one to two months rent to help them motivate and pay for moving truck if necessary? 

Hi @Nathan Gesner I appreciate your feedback!! I find the idea very risky to take on a property that has below market rents and to get the tenants out, but if that’s how it’s done I will find a way. 

I’ve been in the market to buy Multifamily property to house hack for the past few months. I keep finding properties I like but the sellers refuse to get the tenants out before closing. 

I spoke with an attorney in NJ and he said the law is that you have to give 30 full calendar days notice if the unit is going to be owner occupied and 60 full calendar days notice if it’s not. After this time expires THEN you can file with the court for eviction and it’s up to the judge. To me there is some risk there if I close WITH THE TENANTS because the judge could say they have 6 months to get out and then the tenant could go back and ask for another extension. So I’m stuck paying a mortgage while I can’t rent the unit. 

HOWEVER, I spoke with an investor and he said it would be short sighted to let a property go because the seller won’t get tenants out before closing. He said he buys property all the time with tenants. He gives them his new contract with a price increase and they usually just pack up and leave if they can’t pay the higher price.

Is this the common experience for other multifamily investors out there?  

Seeking Advice / Feedback: A wise real estate friend of mine once said to work with people that are always teaching me something new.

Recently, this has struck a cord in me as I’ve started to stagnate with my progress in life. I’m 33 have a wife and 1 year old daughter.

I got hooked on REI back in 2016 and decided to get my license in 2018. I got my license to learn more about real estate, to manage my families beach property, improve my Investor tools and help friends and family when I can. I'm also very interested in the "art of the deal".

Along with having my RE License I also teach high school kids about Architecture, Engineering Design and Photoshop/Illustrator and how to create digital media. I went to college for Architecture and finished with an Industrial Design Degree. I chose the high school job because I can work 6am-2pm and still have time in the day. 

My next move: My happy place is working a real estate deal working with investors. I’m now also looking to use my Sketchup / Design / Sales skills all in one.

With the pending recession on the horizon I’m inclined to just tough it out through the school system for another few years but I’m truly burnt out and I know I’m wasting my time there. There is too much BS in the school system these days.

I’d love to get a new job that teaches me and pays me waaayyy more and feels like it’s worth my time but I can’t settle on something. The idea of a 9-5 desk job makes me cringe. I need to be active.

The only thing I want to do in life is to spend every day building wealth and creating assets that lead to financial freedom.

Ive read every REI book, Listened to hundreds of podcasts, and done a few RE deals over the past few years for friends.

My single family house is currently under contract and I should come out with enough cash to buy a multifamily property and start my REI journey.

Along with this move I’d love to shift my day to day to something that pays more, teaches me and helps me grow in real estate. I know I can be a great asset when utilized to the best of my ability.

If you’ve made it this far in my post I appreciate your time and any constructive feedback. 👍

@Joshua Morton Im sorry for your loss. I love to study the flows of life and the most basic principle in nature is the concept of CREATION. MAINTENANCE. DESTRUCTION, CREATION and the cycle repeats. It reminds me that often times of great destruction can create an opportunity for something beautiful and new to come through and be made. 

My family has owned a beach house at the Jersey Shore all of my life. We rent it out all summer and just  started renting it in the winter. My grandmother passed away in 2018 and myself, mother and sister inherited the beach property. Together we manage it. When we inherited the property it was as my grandmother called it a "Beach Shack" which she wasn't wrong. We own the property free and clear like you, so we did a CASH OUT REFI and used that money to renovate the house. You just have to make the income from the real estate covers the mortgage, taxes and insurance. Not only did this renovation help to secure the property for future generations but it also allowed us to increase our rents and turn a good profit. 

In your situation with your sister it sounds like she has no interest or sees the value in owning real estate. I would have a conversation to see what her vision and expectations are for her inheritance, then use the CASH OUT REFI method to get her the cash she seeks. 

If you have to sell something I would sell the land. That sounds like an easy way to get cash. Unless the location has some great opportunity, then I would develop the land, then rent it or sell the developed land. 

If you want to keep all 3 properties you might try to sell her on paying monthly cash flow payments from renting the property and put each property into an LLC. As an LLC you both would own the LLC as partners which makes it easy to buy her out in the future because you own the LLC and the LLC owns the property. Its equity ownership rather than direct real estate ownership. LLCs to my knowledge are difficult to get a mortgage on so talk with a lender first.

I would most definitely NOT sell the beach house. Condo's can be annoying because of HOAs telling you what to do and Land can be sold or developed and then sold or rented. 

You have alot of great options here and Id be happy to offer more feedback if you have more questions. Im passionate about creating generational wealth and it sounds like you have an opportunity to do just that with this real estate. 

Good luck!

Hey @Jack Dagnese, Welcome to the Jersey Shore! I grew up here in Manasquan and my family has owned a beach front STR all of my life. Ive grown up in that business and am very familiar. I went to college for Architecture and Industrial Design and circled back to real estate design and sales in 2016. Im quite the self starter so I got my real estate license in 2018, so I could be more autonomous as a real estate investor. I do help people buy, sell and rent, but my real passion is for working on real estate investments and working with Investors. Shoot me a message. Lets get on a call and chat about where you are in your process and how I can help!

Wow! Sounds like quite the deal! Congratulations. What are you working on next?

Wow that sounds super cool @Shiela R.! Sounds like youre getting into something  I havent heard of yet. Therefore, I would be super interested in learning more. Congrats on the project! I have family that lives in Lafayette near the Golf Course. 

I just had this conversation with my buyer. The difference between Concession vs Credit. 

My buyer had repairs that came up during the home inspection. He wanted some cash at closing from the seller. I told him to ask for a seller credit, which is cash at closing from the seller.  The attorney wrote up the addendum and asked for a Seller Concession. I caught the error. This is not what he wanted. A Concession is a reduction in the purchase price. I asked my buyer to double check with his attorney why the attorney wrote "concession" in the addendum. Ultimately, the addendum was updated to be a seller credit to the buyer. 

Example Selling Price: $400,000

Concession: $5,000 -- Selling Price at Closing: $395,000. 

Credit: $5000 -- Selling Price at Closing: $400,000 // Seller Brings check for $5,000 to closing.

Sounds like an exciting project! If you need a 3D Rendering / Visualization I can use your floor plant to help you and your potential tenants understand what it will look like better. With the Realistic 3D Rendering you can put it on the market sooner and get more attention before the construction is finished. How great would it feel to have a tenant lined up before you even finish construction?! Message me and lets make a plan!