All Forum Posts by: Tina Tsysh

@John Christodoulakis talk to a real estate broker who sells multifamily first before you talk to a lender. Lenders always look at property's value in a conservative way because they are the ones who take the majority risk when financing a property. See what local brokers have to say first! 

If people only bought properties when they have 100% of the money to put down, then there would be only a handful of real estate investors. Leverage is the beauty of real estate. Real estate is one of the only assets in which you can invest with borrowed money. You don't see banks giving stock investors 80% of the money to buy stocks. This is only possible with real estate. 

If you are using OPM to invest in real estate, you have to know what you are doing, which means that you have to have a track record. From an investor's view, why would you give someone your money who has never done a deal or who hasn't had any successful projects? I think that people who are opposed to using OPM to invest in real estate don't have the courage themselves to ask for it.

As long as you know what you are doing, can provide value to the other party, and make some profit, there is nothing wrong with using OPM for investing! 

It can be a little tough to estimate ARV for a 6 unit property.

Typically, apartments ARV is estimated based on a cap rate. You take the property's annual NOI (net operating income) and divide it by a cap rate. Typically, brokers in your market help you determine a cap rate which is based on recent transactions.

Are there any recently sold apartment buildings that are renovated in your area that are up to 10 units? You can look at the sold price / unit and apply that to your apartment building to determine the ARV. Hope that helps!

Congrats on joining the community! You definitely won't regret it. 

There are so many different ways to find deals. There is the MLS, driving for dollars, direct mail marketing, FaceBook groups, Craigslist, literally everywhere. I recommend reading this article to learn some other ways. Start listening to BP Real Estate podcast, join a local real estate group, and let everyone around you know that you are a real estate investor. The sooner you put it out in the universe and let as many people as possible know what you are doing, the sooner you will land your first deal. Good luck! 

Congratulations on a profitable deal! I think a lot depends on your goals and what you are looking for. Are you looking to expand and grow your portfolio? If that's the case, then use the proceeds from the sale to buy another property. Are you looking to increase your cash flows? Then paying off the other properties wouldn't be a bad idea. However, you can increase your cash flow through a purchase of another deal that cash flows. That way you continue to grow your portfolio AND increase your overall cash flow. 

Definitely read David Greene's book on Long-Distance Real Estate Investing to get a better understanding of the process. Turnkey is always an option also! The most important thing is building a team in a market where you invest. When you are not there physically, you have to have someone you trust to take care of your tenants and property. You can find and connect with many people on BP! Use that to your advantage. 

A quick way to see how to add value to your home is to look around at other homes in your area that are selling for more. The homes that are selling for more can give you an idea of what your home is missing - whether it's a newly remodeled kitchen, an extra closet, etc. Look at recently sold homes and compare them to your house. Write a list of what your house doesn't have that the other homes have. 

It can be difficult to add value to a home that has been recently remodeled, but that would be your best bet! 

Getting an umbrella insurance policy would be your best bet. Don't forget to account for the expenses associated with an LLC - annual taxes in CA, filling fees etc.

Usually the seller is the one who pays the realtors their commission. The seller typically pays 6% to the agent, 3% of which goes to a seller's agent and the other 3% to the buyer's agent. The actual commission doesn't usually come out of a buyer's pocket, unless the seller and the buyer agreed otherwise. It is always recommended to get an agent for better protection and because they are experts in the field. Agents have a fiduciary duty to their clients and they have to act in your best interest. 

You are correct! You can appraise it right away but have to wait 6 months for a refi. Sometimes a lender will want you to do a second appraisal at the time you are refinancing it so it's up to you if you want to pay twice for an appraisal to be done.