All Forum Posts by: Ryan Webster

@Laurence Obi

This is a sales problem you need to sell the seller on why he should sell to you. What is he gaining by selling to you. Ie. No longer has to carry liability I insurance on the property, no longer has to pay taxes on the property.

Look at it from his perspective and make a list of the silver linings. Flat out ask the seller what other than price is important to him?

Also if you plan to tear down the house completely and not build up from the existing foundation. Check with your cities building department you may have to run new water and sewer lines back to the main which can be costly if you didnt budget for it.

@John Heasley

First off sales is a very important skill for future success in any venture. But you have to ask your self are you a good enough sales person right now to make up the salary gap or is it going to take you time to learn and develope the sales skills nessasary. Yes the opportunity to develope sales skill for a better paying future is good, but how much are you paying for the opportunity? Is there a cheaper source for developing these skills?

Let's say that you owned a business that made widgets. Right now you produce and sell 100 widgets a day. And you have back orders for 50 widgets piling up daily. As the business owner you have a choice. you can shut down for a week forfeit a weeks revenue and send your widget machine in for an upgrade so it can produce 150 widgets a day, or you can get a loan for the bank in an amount equivalent to one weeks revenue and purchase a second widget machine to increase production.

Which do you choose?

There are many places to learn and practice sales skills. There are a number of multilevel marketing programs. Some are good some are bad all will teach you sales. I'd do your research and pick one that is focused on developing and supporting its members.

Also grant cardone has a very good sales education program it's not free but it's worth the investment.

@Delbert Standifer

Are you an accredited investor?

Have a net worth of at least 1 million

Or make $200,000 a year or $300,000 for married couple?

If so you have some great opportunities available to you. That can provide you a great return with not work on your part.

If your non-accredited your going to need a partner in the market you wish to invest in.

Or you will need to build your own investment team consisting of a, cpa, lawyer, broker, banker, and property manager.

What are your investment goals?

@Jesse Richards

Do not put properties in an s Corp un less your cpa can very plainly tell you why you should. I would definitely get a second opinion from a second cpa. I have in very special cases had my llc's owned by my s corp, but this was to serve a very specific and temporary need. And the properties them selves were still held under llc.

@Bryan Clement

Firstly always pay promptly. This goes along way with most contractors. Then don't be afraid to remind them you've paid promptly in the past.

Depending on the type of work to be performed ask your contractor if they are willing to let an employee that moonlight your project after hours or on the weekend that could get to it sooner.

Depending on your market and work to be performed there is service called tradesman international it is essentially a temp agency for skilled trades people. They usually have people ready and waitting however not everyone of there people will have a complete set of tools.

@Justin Dominguez

If you can actually raise rents to clear $100/unit free cashflow. With out doing extensive/ expensive renovation. And you are taking into account the appropriate numbers for taxes, insurance, principal and interest on your debt, paying yourself to manage the property, operating expenses, and most over looked operating reserves for future cap ex.

This is a good deal as we are in the part of the market cycle were most everything is over valued and cash flowing property is hard to find.

As far a an economic contraction, this deal is not a flip it is a buy and hold. So as long as you have cashflow you will be ok. So long as you can secure long term debt while interest rates are low. Remember the three laws of real estate investment

1.) Invest for cashflow not appreciation

2.) Secure long term debt

3.) Have adequate operating reserves.

Also look at value add.

Who paying utilities you, or the tenant?

Are rents under market?

Can you charge pet rent?

Can you offer any services, you can charge for that are not currently being offered, house cleaning ( I've offered this to elderly tenants with great success.), snow removal, lawn care( if not already provided). Internet, and cable. ( you can often time negoiciate a bulk rate with cable providers and then you charge your tenant for service.)

To help put your mind at ease you should do some research on your market. You need to find out the following to best predict how your property will perform in a down turn.

Historical occupancy rates

Historical rent rates

Is rent trending up or down

Population growth

Job growth

Job diversity ( make sure the majoroty jobs in your are not held by one employer or on industry.) If they are is this a recession resistant industry?

Historical appreciation. ( this is least important and is usually reflective of population and job growth)

Property tax assessment and optional tax assessments ( historically has your market voted to increase property taxes?)

Always stick to the three laws and your chances of having a great investment go up significantly.

@Greg Dickerson

Thanks greg

I've started an appartment syndication and can't decide what to name the company. Since my real estate investing career began here at bigger pockets years ago I figures I'd ask the bigger pockets community for help.

The syndication is a general partner limited partner structure, focused on medium sized value add multifamily communities in high growth markets. We currently are a regulation A fund and are limited to raising capital from accredited investors only.

I am looking for any name suggestions and feedback on names suggested.

So far we have:

Front door investments

Builders capital network

Roof top investment

Community capital funds

Clubhouse capital

I can't say I'm excited about any of these names, but hopefully you guys have some better ideas.

Has anyone been investing in buy and hold long enough to have experience going into 08 crash. If so what do a buy pre crash and what key metrics do you look for besides large equity and median rent?

How do you find absentee owner contact I for after you find them on assessors site?