All Forum Posts by: Steve Tse

@Lien Vuong you can't infinitely continue increasing rent just because your expenses are going up. This will make your property overpriced and you will eventually lose all of the tenants. I try to find out what expenses can be eliminated, decreased or offloaded to the tenant instead of just rely on rent hikes 

@Gregory Schwartz I have a unique case here so let me explain. I have a long term tenant that has been renting my condo for the last 18 years. The tenant is good, pays on time and rarely asks for anything. As a landlord, I've great respect this individual and have treated him very well. I have not raised any rent for the first 10 years. Then I realized that the rent was about $700 below market rent and my expenses were getting out of control (taxes, insurance, mortgage, repairs) so for the past 8 years I was slowly increasing the rent every year.  
This brings us to the end of 2024 and with all of the rent hikes, the rent is still $320 bellow market. Compared to other parts of the county, the rental market in Boston is doing well but as everyone knows insurance and taxes are on the rise. 

To make it a win-win situation, I was planning one more 6% rent increase and bridge the rental gap to about $225...
  

@Chris Grenzig thanks for the advise, could you clarify what you mean by loss to lease ?

" How much loss to lease is there? If it's 3% then the discount to market might only be 1-3%, if it's 30% then our discount to market might be 10-20%. "

Hi BP of Boston,

When you consider rent increase, what factors do you base your decision on ? Do you increase the rent by strictly calculating the increases in your insurance, taxes and etc ? or do you try to not go over a certain percentage like 5-6% of your tenant's current rent ?

Thanks

@Jim Pfeifer Great suggestion ! Are you referring to a community of LP investors on BP or somewhere else like Facebook groups ? I figured seeking advise on this BP forum would give me an opportunity to consult with like minded investors...

@Evan Polaski Thank you, I messaged directly. I am looking to review the subscription doc to get a better understanding on the profit share calculation after 100% of my initial investment capital is returned 

@Nathan Gesner I am not asking you or anyone else to give me any legal advice, I am looking for someone who had participated in a syndication and is willing to shadow me to confirm my understanding of the proposed deal. I have done my due diligence and I have made my own calculations and just looking to confirm that I am on the right path. 

Let me summarize this for you again, I am not seeking a legal advice, I need hand holding to confirm I am reading the semantics of the deal properly !

@Nathan Gesner I am not worried about the syndicator, I am seeking an advise from an experienced individual who has done many deals in the past and knows how to read between the lines. I am fairly confident in my choice of the syndication and just need someone to go over the numbers to confirm my understanding of the exit strategy when time comes

Hi BP community,

I am fairly new to syndications and would love someone seasoned and experienced in syndication world to sit down with me and go over the numbers. I would like to learn of any potential red flags in the assumptions but most importantly just go over the deal with a fine-tooth comb to confirm my own understanding of the deal. 

I know that everyone's time is valuable so I would love to take you out for a cup of coffee if you are local to Boston or maybe help you with something else like technology, RE and etc.

Thank you in advance

 

@Ellen Cheng

What kind of personal info did you give up to Ownwell for them to protest on your behalf ?