All Forum Posts by: Trevor West

@Jimmy Presnell

I definitely agree with @Natalie Kolodij as that being a great way to immerse yourself in the market and establish a presence. 

Additionally, @Carlos Paz is with an amazing team of Five Pillars who focuses on investment properties. 

My advice is to be as vocal as possible about what you want. Attend as many meetups (in person or virtual), take investors out to coffee, Drive for dollars (call "for rent" signs, look for distressed properties or maintenance deferred properties) and by consistent effort you will get what you are looking for!

Take the 1 MM and invest it. If i invested in several projects and businesses with the entirety of that 1 MM.....

NOT ONLY would I be investing for cashflow but more importantly investing in people, expanding my network, giving and receiving opportunities, opening the door to a whole world of possibilities!

@Jonathan R McLaughlin That is a super straight-forward response and will make my next evaluation pretty simple. Thank you. 

@Mack Benson Incredible insights. Thanks for the tip about looking at the OM to find out the mill rate. I did reach out to the tax assessors office today and had a good conversation.                                                                         

" Taxes = Assessed Value x Mil Rate x A Certain Percent" <--- super helpful - Thank you

@Charles Seaman Thank you a lot. Thats is a great piece of advice and immediately actionable. I reached out today and had a good conversation. Thanks so much for the assist. 

My partners and I are looking to close on a commercial residential property (20-60 units) before the end of the year.

I would like advice on how to calculate the anticipated property/real estate tax once we take over the property. 

I found this example:

If the town your property operates in has a $12 tax rate for every $1,000 in assessed value, the taxes you could expect to pay would be determined as follows:

$1,250,000/$1,000 = $1,250

$1,250 * $12 = $15,000 in expected taxes

Looking for someone to course correct if necessary. Thank you

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Fayetteville.

Purchase price: $75,500
Cash invested: $1

This was a wholesale deal. By knowing my specific criteria I was able to decide quickly if the property worked for me or not. Being that it did, I made it a point to see the property right away. This enabled me to beat out other interested parties and secure the property.

What made you interested in investing in this type of deal?

I have established myself as the multi-family investor in my local area and in my sphere of influence.

How did you find this deal and how did you negotiate it?

This property was brought to me because I had built a relationship with the wholesaler and he knows I buy small multi-family properties.

How did you finance this deal?

Used hard-money to finance the purchase and rehab - then refinanced into longer term financing. Money into the deal prior to refinance was closing costs and points from the hard money lender.

How did you add value to the deal?

Increased rent to JUST below true market value. $550.00 vs $600.00. Since the property already had tenants in it - we did not want to put undue strain on them immediately. The property is a long term hold and I like having long term tenants. That extra $50 isnt going to hurt me over the next few months.

What was the outcome?

The property appraised for $127,000.00 - our tenants are happy to not have had rents jacked

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Long Horn Investments - Based out of TX - but they have an office in Raleigh, NC. POC Greg Horne

@Matthew Ruderman First I would have a firm grasp on your goals. Then understand what your private investors goals are - because they are all different. If your investor just wants a straight up return and to be hands-off - then simple interest return at (fill in the blank) interest rate will be great for them. Especially if they currently aren't putting their money to work. But if your investor is more equity driven, finding the solution that works best for your relationship is the route I would take. 

Strategy also plays a part in this (i.e. Flips, MultiFamily, BRRRR)

@Vincent M. As long as it is a true syndication and not a partnership/JV opportunity, bringing in the right SEC attorney is key. I recommend Trevor Crowe with Crowe Legal based out of Colorado (PM me for additional contact details). He does everything in house and specializes in working with syndicators. But not all SEC attorneys have the ability/bandwidth to do the other real estate required legal support. I would just make sure to ask the questions of what all is encompassed in the services they provide. 

Great points by @Taylor L. - thanks for posting. 

@Ashley Budyak I could not agree with @Johnny Wolff's second point more. As a real estate agent who primarily serves investors, especially those just starting out - house hacking is how everyone should get started in real estate. 

[NOTE: House hacking is when you buy a single-family home and rent out the rooms or a multi-family home and rent out the other rooms and/or unit(s) in the form of long-term or short term rentals]. 

Couple that house hacking strategy with an FHA loan and now you are crushing the game/living for free, putting cash in your pocket and building equity.

Then when you are ready to move out, you replace yourself with a renter and now you have a stand-alone investment producing property.