All Forum Posts by: Brian Orr

Hey BP family,

I've spent most of my life in civil service and the music industry. Had a cup of coffee in the corporate world right out of school but never looked back. That is, until I started my REI business. As it's growing I'm understanding how much of a business it really is, and the types of things I need to do to execute it properly.

BP19 will be my first conference I'm ever attending, and anyone on here knows why I would be doing so... My question is, how do I make the most out of being there? What should I bring? Are we wearing suits? Can I stash my family in downtown Nashville? Is there even any time to spend with them? And ultimately, how do I approach this opportunity to generate the highest return in both experience and education?

If any conference Veterans have tips I'd be happy to hear them... Looking forward to any advice and to meeting you all there!

@David Nacco I don’t think it’s dumb it’s actually very important. And to have that uncertainty shows that you realize it’s important.

A lot of good pointers here already, but consider this: be the best of whoever you are and be comfortable! If you’re putting on an act most people will see through that immediately! Dress clean, sharp and respectable and that means for you and respecting the person you’re meeting. Which means doing your due diligence on the person, framing the context and adjusting accordingly.

And of course avoid any extreme that would alienate you from the person. (Think concert T shirt or tuxedo)

@Mindy Jensen Very excited to be back on BP! And very excited that I've finally decided to attend my first professional conference and who else but with BP. Looking forward to it!

I can't @ everyone here, but thank you all kindly for the in depth and informative responses. I swayed a bit from biggerpockets as my personal life has taken me elsewhere over the last year. But I will resubscribe and hopefully befriend and stay in touch with all of you. Tremendous responses on all fronts and I truly appreciate you all taking the time to offer advice on this new venture.

I’m in contract on a small deal for 500k. A long time friend of mine expressed interest in being a cash partner, simply looking for a better return than his savings account. This would be through monthly cash flow or the cash return upon exit or refi.

For simplicity sake, if I’m putting down 100k and he offers 50k of that we’re both 50% equity invested at this point. But the loan is in my name and I will be performing all duties, he’s 100% passive.

I know the 50% cash to cash investment shouldn’t be equal to 50% equity. The question is, what should it be equal to? Should it be 10% as it’s 10% of purchase price? It would actually be less I guess because we need about 30k in repairs. Also will need some operating capital to turnover the apartments as we reposition.

I’ve been searching syndication blogs but they don’t seem to address this, or at least I haven’t found one that could give me input on this scale.

Any ideas how to incorporate him into this deal would be greatly appreciated.

@Richard Sherman that's all great info, thank you. So my current plan was to give them notice tomorrow actually, that their m2m would end in december. Following that, give them all the letter of new terms and rental applications. I feel this will serve many purposes as you'd know, but also address that separation issue you discussed... what do you think? 

And secondly, would happen to have a copy of that notice you served? If so, is there any way you would share it with me for reference?

@Artie Wrightson @Michael Jones These tenants are on M2M and the law here is 7 days notice for increase. Taking over a lease you have to honor their existing lease until it expires. The route I'm taking is I'm actually serving notice not to extend their m2m with 6 weeks notice. Then offering them an application to apply under the new rent rates and property rules... The choice is theirs to leave or stay. The rents are 20% below market easily without factoring the utilities we've been discussing. With the amount of drama i got from 1 tenant having to pay $1.60 for a money order, I'd imagine this problem should take care of itself that way

how are you passing this up? hahaha... send me details please. [email protected]

I wrote this in a new post but I'll copy it here, hopefully y'all see it: https://www.biggerpockets.com/forums/52/topics/635...

....

Well I just met with all of the tenants individually, all of whom are on M2M. Early in the conversation I let them know I would not be accepting cash as the prior owner did. This alone was met with near rage about having to figure out an app or having to pay $1.60 extra for a money order or 2% at a cash deposit station... I never even got near the point of raising the rent $55/month, pet fees, no more smoking, etc... Needless to say I think I need to take another route.

The challenge here is getting the tenants to realize the old guard is out and new rules are in place. I'm willing to give them until jan 1 to enact the new policies and rates, but I know I'm being met with high resistance, and I fear they'll keep retreating back to "this wasn't how we used to do it".. I wanted to ask what you all thought of this plan:

I want to give notice of termination of the leases this week, effective move out December 31 (This is more than the 30 days required by NC law). With that, present them with a rental application for the new lease to begin jan 1 with all of the policies and rates and allow them the opportunity to choose to apply under new management.

Of course I hope they'd like to stay, but if not, the place could use some updating and I can likely get new tenants in at $500 once that's done.

It's 7am while I'm writing this, and I will check with my lawyer first, but nothing beats the BP feedback and experience.

Thanks in advance for your input!

@Nathan Gesner Ok great, thank you. Yes I didn't quite have the conversation it may have sounded like. It was just a first meeting and essentially a scout of the property and conditions. I avoided all of the "changes" conversation but the current owner has them on a "rent due by the 1st, but late after the 10th". So of course none pay until the 10th. they were all asking if i was there to collect rent etc... so I just let them know that I wouldn't be personally collecting it.