All Forum Posts by: Brian G.

Jenny, when he told me that he can sell it for 300k, I asked him if there's something I'm missing that would value the building at 300k, that is when he started in with the "you don't know the area" talk. The broker seemed just a little bit like my offer was a personal insult.

Mike, that is what I figured, but since I myself am new to REI, I thought maybe there was something I was missing.

I put in a LOI on a property that was turned down today. It's a multiunit property that had an asking price of almost 400k, based on my analysis the most I could offer was around 140k. So, I offered a bit less than that and it was turned down. The broker told me that I'm looking at the property as numbers on a piece of paper and that others buyers are willing to pay 300k for this property. He claimed he could sell the property tomorrow for 300k, but the owners wouldn't go for it. So, out of curiousity, I ran the numbers for a 300k purchase price at 7% for 20 years. The PITI payment is roughly $6,660 dollars, when the GROSS RENTS are only $4,370 per month! So, this is a long winded post to ask WHY would anyone pay 300k for this property??? The broker was trying to tell me it's because I don't know the area, etc., but regardless of area, why buy a property that in best case scenario is going to lose $2,300 a month?

Brandon, PM sent.

I'm looking for 10-50 units in a good area of town with good potential from a reasonable seller who wants to move quickly. Looking around the central and eastern parts of PA.

If you come across anything that meets or comes close to meeting those requirements, please let me know.

Thanks.

Brian

I would like to invest in commercial RE, starting with apartments. Currently, I have no experience in REI. I've been considering getting a job working as a property manager to get some real world experience. I figure this could only help when applying for a loan. Although, as a RE investor, I want to have my properties professionally managed.

So, I'm just throwing this out there and would appreciate your feedback.

Mike, not even enough for cookies : ) ?

You can check out Buying Small Apartment Properties by Brian K. Friedman. It was recommended to me by someone on the forum. I found it very informative. But, I must add that I am a newbie to REI and have little to compare it to. (Now, I need to compensate my re-reading of this book with some real action finding a property, other than just scanning Loopnet.)

I also took the advice of many members here and joined a local REIA. It's always great to speak to people who are ACTUALLY DOING what you're trying to learn. Also, search the forums, there is a ton of great info right here and it's free! Good Luck!

The developer Jorge Perez started at nothing and exceeded $1 billion. Do a search on him, he also wrote a book I really enjoyed.

Brian

Thanks to everyone who responded. I am looking to do something along the same lines as Ken.

When buying out of state/driving zone, what steps do you take to ensure that you have the RIGHT property management and all the necessary pieces in place to be successful?

Joshua, will you still use a property management company for a property that is in your driving zone?

Brian