All Forum Posts by: Timothy Swenton

@garretthayes

Hey all! So looks like my first deal is around the corner. And my partner/best friends second deal. 

We wanted to ask some input from experienced partnerships on how to set up and run a partnership in a deal. We have run the math, we know its solid etc. We have a hard money lender(my family). So how do we go about planning even bank accounts and pay? Should we stick the complex in his already established LLC or make a new one? For cap ex should we have a combined savings to save into or just honor system? What do we do about the buildings accounting? Etc etc etc....

Background on us: We have been best friends since we were born(parents went to college together). Were both 23, he has a full time job he does well in and  a 4 plex already. I have my own small retail hobby business. We work super well together, we have a very similar moral, financial, and business mind. We are open to anything.

Thanks in advanced to all the input!

-Tim and Garrett from Maine

I will "tag" Garrett in this post if I can figure out how

Myself and fellow member Garrett Hayes may be attending. thank you

When looking into a potential multifamily properties, I've noticed lots of Information is not there. Seems many properties on the MLS in my area do not give nearly enough information for me to do a good calculation. I love the BP calculator it makes my time more efficient, however with not much information in the listing and also my lack of experience, guessing for values etc is not very promising. What should I ask for? I can do the basic numbers but again they're just guesses on similar market values and rents etc... For me to feel comfortable buying a property I'd really like to see the sellers full expense and income reports. Is that something I can ask for without being too forward? And man pictures are horrible! Does anyone own a smart phone in my area lol! Thanks!

Originally posted by @Ryan Murdock:

3200 gallons is a ton of fuel. Are you calculating that? Keep in mind you buy 90% of it in 6 months of the year which means winter cash flow can be negative even if the annual cash flow is a positive. Be prepared to ride out that storm.

Run your numbers with 10% each R&M, Capital Expense, and Vacancy and I think you'll arrive at a very different outcome. 

I have no first hand knowledge of this property but for $59k it seems pretty cheap. Why is it still on the market after 4 months? Something's up...

Thanks Ryan this is why I decided it would be a good idea to have some experienced investors guide me a bit on some of the first properties I had interest in. Also thank you for the recommendations on the percentages I will do that from now on. 

I definitely thought it was strange for the price and the amount of time on the market.

The fuel consumption is pretty high. Is that something that could be charged to tenants if I was to meter them? Same with other expenses? Rents are a tad lower than averages in the area it seems. 

Ryan do you invest in Maine I see you are from Bangor? 

thanks for your help.

Tim

Hi all. Looking for some help. I live in Maine. Looking for my first investment property. 

I found a few so far and this one seems the most promising. 

There are currently 4 rentals in place. One 3 bedroom and 3  2 bedrooms. I called the broker she said most tenants have been there long term and pay on time etc. However ones a possible hoarder, and 2 are section 8. Which I am not sure if I want to deal with section 8s my first go?....However the positive cash flow seems pretty convincing IF the broker is being honest about "good tenants".

Heres some listed info below. 

The current rents below and they all include the following:

Dedicated Electric Meter, Electric, Heat, Range, Refrigerator, Sewer, Water

800 

650

695

610

$2755 Monthly income total

My expenses I tried with my own math and then the calculator as follows:

Total monthly expenses $1485.36

Pos cash flow $1269.64

I used the BP calculator a bit. Seems promising... However I am still a newbie and not entirely sure how much for each expenses etc I should be factoring in. ESP the percentages

Was built in 1910. (two seperate buildings)

MLS number: 1281019

This is the description

New Price Reduction! Motivated Seller! All reasonable offers will be considered! Multi-unit building with 4 units. One unit with 3 bedrooms and three units with 2 bedrooms. Vinyl siding on exterior. Newer heating system. Great investment! Good rental history on all four units.

Seller is asking $59,750

I also live an hour plus away from this investment. That's my only other worry. Should that matter for much? 

This is one of a few places I am currently looking at. Tell me what you guys think from some of the basics I gave. And the things I really need to look out for/account for when doing the math. 

Thanks a million, hope everyone has a safe and fun New Years!

-Tim

Hello all. My name is Timothy Swenton. I started my interest in real estate investing about years ago while doing some goal and future thinking. Within the last few months I really dived head first into reading and educating myself daily on real estate. Brandon's book on rental property's was recommended to me by a friend (Garrett Hayes) who is also on here and from southern Maine. He just closed on his first multi unit home for a great deal! I plan to do the same within a year!! 

I currently just opened/acquired a local hobby shop that I have been going to since I was a kid. My true passion is trains and I have made something out of myself in the hobby with custom painting, weathering etc. Taking over my old mentors business has been a blessing and I am excited to carry his legacy on while building my own.

On the side however, ive always wanted to invest in other places. I figured real estate was the place to start for me. Some day hopefully ill invest or start other businesses as well once I get the hobby shop self maintained.

My biggest passions for pursuing my own businesses and investments are financial freedom. I truly have the goal of becoming financially free by 35( I am currently 22).

Anyway thanks in advance for all the help I will receive here. I LOVE learning and I am fascinated by real estate investing. Cant wait to see what the future has in store!

-Tim