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All Forum Posts by: Tom Sylvester

Tom Sylvester has started 18 posts and replied 187 times.

Post: How to determine value of a real estate business?

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

I'm a 50/50 owner in an LLC that holds a variety of real estate. We are looking to either buy our partner out or have our partner buy us out. In order to do this, we'd first like to figure out the true value of the business.

Does anyone have any useful guidance/articles/companies that can help us assess the value of the business?

Has anyone else gone through this process before?  Any tips or guidance would be greatly appreciated.

Thanks in advance!

Post: Experience with hiring an employee for property management?

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

We are looking to oursource some of the tasks in our business, mostly around property management and would like to hear experiences of others who have done this.

What we are looking to outsource includes the following:

  • Taking tenant calls
  • Showing the properties
  • Signing lease paperwork

We invest in rural areas, so property management companies do not exist.

We are looking to hire someone directly for this.  This position will be ~5 hours/week.

A major hurdle that we have run into is workers comp.  Since we are in the real estate industry, insurance companies want $2,000+/year for workers comp.  

We are researching what options and alternatives we have.  

From all of our research, it seems like we will need a W2 employee instead of a 1099, which means needing workers comp.

Has anyone else done something similar to this?

Post: Make the wife understand

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

@Stephen Dominick - I feel your pain.  It took me a long time and may painful conversations to finally get my wife on board.  That was about 8 years ago and our lives have changed completely since then (from real estate and starting other businesses).

I tried a lot of different things to get my wife on board (including spending $7,500 that we didn't have on a credit card for guru training).  In the end, what worked for us wasn't even about real estate, it was about figuring out what we wanted our of life together.

After many long talks, we came up with the vision for our lives and set goals/targets for 20 years, 10 years, 5 years, 3 years, 1 year, 6 months, 3 months, 1 month and 1 week.  We worked backwards and basically said (in order to achieve goal x in 20 years, we would need x, and here is what we would need each smaller time period to roll-up to the next one).  One of our big goals that we each had to to be able to spend time with our then future (now current) kids.  We wanted to be able to stay home while they were young, coach their sports teams, etc.  We also wanted to be set financially and provide options for living a great life.  As we began exploring how to achieve the goals, it was obvious that working our current jobs would not get us there.  That is then when I showed an example real estate deal and what it would mean in terms of income.  She was still skeptical and filled with fear, but she was open to trying it.  Once we purchased our first duplex and she saw the income come in, she understood and shifted to wanting to continue.  Since then we have continued the process and started other businesses (such as a wine and liquor store, coaching to other couples/entrepreneurs and online businesses).  

Another thing that I think helped was convincing her to play Cashflow 101 a few times.  It allowed her to see different strategies and the impact vicariously.  Then when we started doing it in real life, she understood how continuing down the path would get us to our goals.

Post: How did you convince YOUR spouse about real estate's awesomeness?

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

Great topic, and such an important topic for so many.

I first failed at getting my spouse on board when we moved from an apartment and purchased a house.  I was set on purchasing a duplex, living in one side and renting out the other.  She was not for this and we purchased a single family.

What ultimately helped us was to look at our long term goals, then work backwards for how to achieve them.  It was obvious that we needed to do something to generate additional (passive) income, so once I laid out a scenarios involving real estate with actual deals and numbers, and showed a map of how we could get there, she got on board.

Oh... and the $7,500 that I put on a credit card for "guru" training probably helped as well.  Needed to pay that back somehow.

Post: Newark NJ Investors Looking to Connect?

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

@Steve Wilcox - That sounds great.  I'm typically doing other business during the day but maybe we can grab dinner or a drink some night.

@Rafael Norat - Agreed, I was impressed.  Real investors, real knowledge being shared and networking.  There is a lot of good stuff going on locally.

Post: Newark NJ Investors Looking to Connect?

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

@Shawn Mcenteer - Yes, Newark, NJ.  I thought I put that in the posting but maybe not.

@Mark Langdon - Well, that timing works out well.  I'm coming from Union so hopefully I can make it over there by 6.

@Rita Droz - Sounds great.  I'm staying at the Embassy Suites near the airport M-Th this week and the next 2 weeks.  I'm usually back by 6:30/7.  There is a bar/lounge area here if you would like to meet here and chat some night.

Post: Newark NJ Investors Looking to Connect?

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

I'm doing some work in the Newark area over the next month and would be interested in grabbing dinner/drinks with investors in the area to chat and share experiences.  

Most of my investing has been with buy and hold, but I've also done some wholesaling and flipping.

Either reply on here or send me a message if you would be interested getting together to discuss real estate.  I'll be staying at a hotel near the airport.

Post: What to do with $3 million?

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

Quick question: If you had $3 million to invest in real estate, what you would do?

--

Back Story:

So I've been in the residential buy and hold market for several years, mainly focused on duplexes.  We've started working on growing buy purchasing a few mixed use resdiential/commercial 4-plexes.  Our long term goal is to 1031 exchange our duplexes and keep moving up in size to apartment complexes and commercial spaces.

Recently a friend came across some (very) good fortune and won the lottery.  He approach us about investing with us.  He has several million that he is looking to invest.  He wants his money to work for him, and doesn't want to be involved in the actual business.

As I have not done much in the larger complex and commercial space, I'm just looking for some general thoughts/guidance on how people would go about investing this money.  The guy has the money in CDs right now and is in retirement, so he is just looking for a modest return so he can live off the interest.

 Thanks in advance.

Post: Name that PODCAST...

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

Buffalo/Rochester same thing.  Sounds like @Brandon Turner is spending too much time with @Joshua Dorkin ...

@Mandy Telleria - Let me know if I can help with anything.

Post: Traveling to San Diego 5/19 - 5/23

Tom SylvesterPosted
  • Real Estate Investor
  • Rochester, NY
  • Posts 193
  • Votes 46

I'll be out in San Diego next week. I have commitments during the day but would be interested in grabbing dinner with any local investors.

I'm from Rochester, NY and am primarily a buy-and-hold investor, but also have a few other businesses.

If you are interested in getting together to discuss real estate or entrepreneurship, reply here or send me a pm