All Forum Posts by: Stephen Brown

I am also shooting from the other hip. @Wesley W. is right about it not being your fault. Just like if their belongings were lost in a fire it would not be your fault. But you can expect their insurance company to come after you for their money. Plus the downstairs will want their deductible from someone. If your tenant pays the insurance company or the other owner then no worries.

Personally I would keep pushing back asking, how is it your fault - you were not there. Even if they threaten a lawsuit, I don't think they have grounds.

You might want to check the Master insurance policy of the Condominium and see what it covers.

@Keyoka Smith Keyoka, I'm not a doc (but my wife is a great Labor and Delivery Nurse). I've been investing in real estate since 87. Sometimes with terrible scores, sometimes with high debt to income. I agree with @Drew Eldridge you need to get comfortable with debt - but remember that comfort level is your risk tolerance. If you go past your risk tolerance you will not sleep at night. I also agree to talk to the local banks, not the nationals. There are usually a half dozen banks that like docs who invest in real estate.

Another area to invest in real estate would be a syndication in a commercial property like an apartment building. Low risk, Low DTI inspection, Low work (someone else finds the deal) and often without any personal recourse if it goes belly up. There is a great deal of upside. Yes you could lose your money, but you can't lose more than you put in with most good deals.

Keep looking, sounds like you are on track. I believe that if you buy 1 or 2 properties a year you can replace your income in no time.

@Ben Leybovich EXCELLENT ARTICLE. One thing both my partner and I have been saying is that we have to look for solid, income producing, recession resistant deals so that we will be in the game when the best deals come around. If we sit on the sidelines now, we will still be sitting on the sidelines later. Yet we can't jump in just to jump in.

@Omar Khan @Ivan Barratt I agree that IRR chasing is not the holy grail, in fact it's dangerous, but what is chasing the IRR. A 5 year IRR of 15% seems like the norm to below norm for the investors in our last deal in Ohio. I'm not a pro but I want to present solid deals that cashflow and produce good returns. What are your metrics at this time?

Sorry for a one response for multiple people
Michael Wang - Yes the Beavercreek deal he spoke about is the one my group brought him. We just started looking at an interesting one.

Todd Dexheimer - I couldn't agree more. We actually had tracked down quite a bit of money prior to the deal. Had a problem finding a sponsor. Found Rod through my son's contact with him. And they wanted to go 506c so they could talk about it on their podcast - I think they misunderstand what solititation is (or I do) but when we went that direction my money was no good.

Omar Khan - I couldn't agree more with you. And I really did misspeak about find money if you have a deal. In the single family world, if you have a good deal you can probably find the money. In the multifamily world, waiting to look for the money until after you found the deal is disaster. What I meant was that because it was a good deal, and the group had enough investors to talk to, we were able to find the money to complete the deal. Thanks for the catch - I would not want anyone to get into multifamily thinking that 'the money is laying on the street'.

If that's your dream house, then spending $800 a month for 4 years is nothing. What's $38,400 among friends? If it's not, then I would sell. Sure you won't find the same interest rate, the same house, the same deal later, but what could you do with $38,400 and the profit from your house? And you will find a similar deal. You may be able to find a syndication deal to put your profits into and buy a multifamily. When you get back, you'll be cashflowing from that and ready to buy your next dream house.

Hi Claire,

I've been doing this since 87 and here's what I see.

Duplexes usually do not have 50% expenses, usually less.
If there is no air, you might want to get some quotes and see if you could finance the AC, I think without central Air in Fort Worth you might not get the $1,000 a month.

To me your income is tight, for sfh I like a minimum of $3600 net profit a year, duplex $6,000, Tri and quad I'd like to see $2,400 out of each unit.

I like to use http://www.*******************.com to give me a pretty good idea of the value.

It appears to me that you are making $83 a month per side. That's not enough.
Realize that, out of 24 rental months per year, if you have 3 months where you are empty or they don't pay you will be coming out of pocket for the mortgage.

I'm pretty conservative. Our group just closed on a 101 multifamily in Ohio and we had to back out of the deal at first because we couldn't make the numbers work. Went back to the seller and worked a few things out and we bought.

Personally, I would pass.

Steve

There were quite a few of us. Not surprising we didn't meet.

Hey gang. Has anyone been to a Rod Khleif Bootcamp? My partner and I attended the Cicago one, and I have to say that there was a lot of content given out. 

One thing that we were surprised about was the fact that OUR PROPERTY was featured. When I say our property, I mean we found it, negotitated it, contracted it, and began our due diligence. Then we presented it to Rod Khleif's group and they liked it enough to partner with us.

It is true that if you find a property the money will appear, Rod and Robert sure helped out with that. COuldn't have done it without them.

We were just shocked to see that it was part of the training. Cool.

If anyone has been considering Rod Khleif, I would say he is the real deal.

There is another one in Atlanta that is filling up. Not sure if I will make it but was wondering if anyone else was planning on going?