All Forum Posts by: Jojo Joy

Have you considered getting the property under a master lease agreement? Wherein you get the equitable interest (that is any value increase you bring to the property is yours to keep; also any cash flow minus the payments to the owner) in the property and seller gets to keep the property under his name, so no capital gains tax.

Here is a good read on BP: https://www.biggerpockets.com/renewsblog/2013/06/18/case-study-master-lease/

Hi Wilzon, welcome back to being active.

I would recommend you to invest in yourself before jumping in because the right mindset is what you need before doing anything at all. You need to think long-term wealth, than some $$.

Try starting with a book like http://amzn.to/2HfguiI Real Estate Investing for Dummies.

Also, don't forget to check out the Ultimate Guide to Real Estate Investing on Bigger Pockets.

All the best!

@Scott Blevins The books I found most useful are:

http://amzn.to/2CdXrl7: Commercial Real Estate for Dummies - Peter Harris and Peter Conti

http://amzn.to/2Hb2PJc: Crushing it in Apartments and Commercial Real Estate - How a small investor can make it big - Brian H Murray

http://amzn.to/2BoY9z7: Wheelbarrow Profits: How To Create Passive Income, Build Wealth, And Take Control Of Your Destiny Through Multifamily Real Estate Investing- @Gino Barbaro and @Jake Stenziano

http://amzn.to/2EWXBjK: The Due Diligence Handbook For Commercial Real Estate: A Proven System To Save Time, Money, Headaches And Create Value When Buying Commercial Real Estate - Brian Hennessey

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All the economic indicators are moving similar to pre-1929 meltdown according to the cautious economists like David Rosenberg and legendary investors like Jeremy Grantham. We might still have a quarter left of the large melt-ups that we are seeing now. 

The trigger might be hidden in the commercial RETAIL real-estate (Amazon effect, remember the $190M mall in Pen state that sold for $100), or the student loan debt crisis or retiring baby boomers... 

But people would still need a place to live, and it is sure not going to be the class-A. So, I would think whatever the case may be, sure bet is to put your money in B and C properties and have some reserves for the inevitably cheaper properties soon to hit the market. 

About interest rates, if all this happens do you think the Fed can sustain the uptick? 

Trust me, depending on the age of the property, the expenses could even range to 60%+. This includes capEx reserve though, which cannot be skipped upon.

Yeah, but like you said this can be brought down with rent increases and implementing bill back on utilities.

When in doubt, I would get multiple quotes. Also, I do not think there is a standard on calculating Inspection pricing. Some companies would charge based on the square footage, some on the condition and some based on the experience of the inspector himself. Again, get multiple quotes.

Trailing 12 (or more), which includes the last 12 months of rent roll, P&L - Profit and Loss statement, if possible the tax statement. Also, info about when the past renovations, what all were replaced (giving you an idea of the big ticket items coming your way). 

Try stopping by the property and talk to a few tenants, this gives you an insight into actually living there. Try and talk to the maintenance staff, ask if they had unlimited budget what all would you do to the property? Trust me that question would reveal a lot things that you wouldn't have anticipated. 

Call the reception and talk as if you want to enquire about a possible lease, will give you an insight into how the management company deals with customers (You might not even pickup the call, or respond to your voicemail mail). Do the same in person, see how they show you around. 

These are just a few things you can start with and is no way an exhaustive list.

Hi Lisa, 

I see that this is an old thread, but did you end up using him for your accounting work? I would like to refer @Belinda Lopez, who mentioned his name in another post.

Thanks!

@matthew j. No, a triple net lease is not applicable to Multi family. Imagine everybody in a multi family leasing there apartments for a variable rent every month, but no they are not on month-to-month.