All Forum Posts by: Tim Ryan

Correct. If you have PITI the TI is in the monthly debt service payment. Now depends on how many units the property is and these numbers change. But, somewhere between 40% to 50% in expenses (included taxes and insurance) is correct for most mutlifamily. This deal looks like either a no cash flow deal or possibly a negative (because I don't think you will get 4% loan on an investment property). So, learning about analyzing and asking the question is good. This as a deal, not good to me.

I don't know the laws in Texas. In California the contractor can file a lien yes. But, you can call the License Board and tell them exactly what you wrote and they would come down on him hard. Just a threat of calling the Board in Ca would back him off the lien.  I'm a Ca contractor but you better check with someone in Texas about this.  Makes me upset because I hate it when contractors do stuff like that...

Hi Dillon,

I started knowing nothing in 2008. I own multifamily now and doing local flip/development projects full-time. Let me know if you want to meet and network. I'm in Pasadena area.   

Hi Ray,

Sounds like you two have a good plan. I am a contractor and full-time real estate investor. We should connect. I have a Meetup Group in Pasadena, Ca called Real Estate Investors' Hard Hat Tours.  We meet on site at one of my projects in the hottest areas of LA (development/flip properties).

Looking forward to connecting with you. This is a team business.

Tim

Hi @Sharon Anschultz, 

I agree with @Andrew Michael on his first point. You need boots on the ground.  I have found no good Turn-Key operations. Talking to realtors only gets you so far. Remember they are sales people and you are the rich California kid (whether that's true or not is besides the point).  I picked one market that is 2500 miles away and have been working it since 2009. I believe this is the only way. I travel quarterly and its fun (and I am married with three kids). If I can do it so can others.  Let me know if you want to hear more about what I have done. It's work and it takes time, but it's paying off. I am only doing multifamily properties and all out of state.

Hi @Shaun Pruett, you are exactly where I was in 2008 when I started investing in real estate. It's tough living in So Cal because we really want local deals - who doesn't because you can "see it everyday and touch it" (being cynical here as that is the line and its bogus).  Many of these posts have very good advise.  I'll never forget in 2008 I was so hungry for a positive cash flow rental property. I did a coaching program with Robert Kiyosaki called Choose to be Rich. It was one of the best educational things I have ever done. When in the program they had what they called a Resource Line. You could call at any time and talk to a coach and ask any question you have. The coaches were the real deal, they were smart and they were successful. One day I called and was complaining that Rich Dad is unrealistic because I can't find any deals with the returns they were saying I could get (on rentals). The coach asked where I lived (he knew where but wanted me to say it), I said Los Angeles.  Then he went on to say "we have 35 coaches up here and all are semi-retired, successful, and all have a lot of real estate holdings. Not one of use, not one, owns rental real estate in California".  That changed my life.  I now own 195 rental units and 44 in escrow - all out of state. Not bragging (but I am proud of me for taking action ;) ), I learned that lesson and maybe you can too.  I flip and develop Los Angeles homes but I'll never own a house or apartment here.  Hope this story helps. Tim

I agree with most that you move on. Especially since you already did it and to now get a bill in the mail is just not cool.  I bought a 22-Unit apartment building last November from the builder himself. It was built in 2012. The seller told me he has build over 500 units over his life and this building has all his best ideas. (It is a good property). 

One thing he did is all the front doors have a door knob and a dead bolt - like usual. But, the knob has not key and no lock. Only the deadbolt locks the door and inside is a thumb latch (for quick exit in a fire). So, what he did was he eliminated all the calls at 9pm on a Friday night because it's now impossible to lock yourself out! 

How did he know this?? He obviously learned the hard way...

Are you syndicating and looking for investment funds or do you have leads on the properties to buy?

By the way. I just noticed my profile says "wholesaler from Arcadia". I do live and have office in Arcadia but I am not a wholesaler and don't want to be. So, not selling houses either ;)

Guess I need to change that. I don't go on BP much...

I just started a Meetup in Pasadena.

http://www.meetup.com/Real-Estate-Investors-On-sit...

We hold the meetings at a house I am flipping and we take a tour. No sales. I'm not doing this to become a guru or start an educational program lol.  I am looking for partners who want to learn this business "on the job". It's very different. Hope to meet you soon Tatiana.