All Forum Posts by: Steven Segal

Correct - general contractor.

What type of interest rates are you looking to pay on this? I do have some contacts, and I could run it by them. It is more private money than bank loans, if you are interested.

Marshall/Craig-

I am interested in this deal if you are still looking for an equity partner. 

Please give me a call to discuss.

Steven

608.312.3712

Alex-

Check out these two sites:

http://www.wikihow.com/Become-a-Real-Estate-Agent-...

https://www.realestateexpress.com/prelicense/wa/pr...

Steven

Essentially, I have about 20 units in one LLC. This LLC was given a loan from the guys that I work for an amount of capital to do my own deals. Essentially, these guys put pooled together personal money to create a fund, and I purchase and rent/sell houses for them, and I am paid in commish. The money is secured by future commish from our arrangement. None of the properties have a mortgage or any type of debt attached to them.

In this case, would I be able to refinance these properties? Or if the company debt:equity ratio is already at 75%, would they consider the company already too leveraged?

If you are into that sort of thing, you should check out self-storage facilities and mobile home parks. Those are both businesses based on caps, and you can add revenue as well as reduce expenses.

Matt-

Dealing with some pretty similar issues now. 

For one of them, I was given the financials and the tenants paid the first of every month. They are paying $550, but they should have been paying about $625. I decided they were paying every month and had been there for awhile, and at the price I picked up the duplex for the numbers worked so I let them keep those rents. Perhaps I'll readdress that in the future, but I am using their rents to pay for other turnarounds right now. 

These sound like lower income properties, so I would pay you don't want to piss off the tenants too much and do anything too aggressive. At that price point, I don't think you are going to have tenants who are going to want to shop around and make you an offer.

Also, being in Ohio, make sure you do this during a good time to rent. The summer would be good and you have that going for you... Maybe do it to one duplex in June, (other cash flows can help cover turnarounds), one in July, and one August. I would do something staggered like that as I don't like to have to come out of pocket for everything.

Steven

Note for Fort/Cape PMs: We actually own a PM company. I don't think it runs too financially beneficial, but I don't think the managers would get rid of it. Just more of a theoretical question as I don't see the current setup as the best setup.