All Forum Posts by: Trevor Martin

Thanks @Ben Leybovich

He's not an agent, I don't believe you have to be licensed to be a PM in Illinois. I have my own agent I've used for my purchases, so he is not getting a commission. Only 8% in management fees.

I mentioned he was recommended by my banker/a family friend as reasons why he should be trusted. As for why he's qualified to give me RE advice; he owns one of the bigger portfolios in town and has quite a few large multifamily buildings under his belt.

I was introduced to him through the president of my bank. He's also a family friend. He met with me multiple times to discuss investing and took me out on multiple showings before I finally purchased. He didn't charge me anything for this.

First two properties I purchased under his watch:
Single Family #1
Purchase price: $73,000 (paid cash)
- appraised $90,000
Rent: $895/mo
Insurance: $60/mo
Management: $70/mo
Taxes: $1600/yr

Single Family #2
Purchase price: $63,500 (paid cash)
- appraised $95,000
Rent: $950/mo
Insurance: $60/mo
Management: $75/mo
Taxes: $1400/yr

I'm usually a good judge of character, I can understand where you guys would think he's trying to screw me, but I don't think he is. I don't think he was suggesting I pay the whole down payment and he still get 50%. I'm just trying to come up with a creative way to get my half of the down payment back.

I'm looking into purchasing my first multifamily property with my real estate investing mentor (50:50 split ownership). It's a 12 unit building that will require a down payment of ~$90,000. My mentor (potential partner) has all of his cash tied up in another property at the moment, so he suggested I be the financial partner and he be the managing partner. I have the cash, but need help figuring out a win-win partnership.

I'm new to real estate investing and he has been a godsend. In three short weeks, with his help, I've purchased two single family homes that will be very profitable. He's managing them for me as well, and has already put two great tenants in them at above-market rents. He's streamlined the entire learning curve and has always made himself available to me. For this reason, I want to make sure he gets a good deal out of our first multifamily partnership. That being said, I don't want to give up 50% of the building just for management (which he normally charges 8% for).

If I put up the entire $90,000 down payment, how do you suggest I get my $45,000 (50%) back? Since only he will be managing the building, I thought about offering not paying him management fees until that $45,000 was recouped? Is that a good idea, or how else would you approach this?

Thanks for your help!

Hi all,

First, I wanted to say thank you all for the wealth of information located on this site. I came across it a few weeks ago and can't seem to stop browsing since. This is my first post, so I hope to interact and get to know some of you in the future! :)

Background- I'm 20 years old, self employed, and not currently in school (took time off to focus on various business opportunities; YouTube and online-media to be exact). Things are still going well on that end, but it's not a stable career that will last for 40 years, and without a college degree, that is a scary thought.

For this reason, I took up an interest in real estate investing. I did my research, exercised connections, and soaked up as much information as I could over the past month or so. Then, in the past two weeks, I pulled the trigger and bought two single family homes in my area. Details if you're curious (good deals, or no? Any feedback helps):

Property #1
Purchase Price: $73,000 (I believe it will be appraised at $85k+)
Rent: $895/mo
Ins: $60/mo
Prop Manager: $72/mo
Taxes: $1665/yr
Mortgage: $0 (paid cash)

Property #2
Purchase Price: $63,500 (I believe it will be appraised at $90k+ after siding & carpet)
Rent: $925/mo
Ins: $60/mo
Prop Manager: $74/mo
Taxes: $1200/yr
Mortgage: $0 (paid cash)

Based off of the expected appraisals on these homes, I could refi and get most of if not all of my cash back out (I also have more cash available I haven't toyed with yet). This being said, what would you recommend I do next?
- Slow down and don't get in too over my head, too quick?
- Keep pressing on trying to find good SF deals?
- Look into multifamilies? (I want to, but I'm also a little concerned because I'm not as familiar with them).

Any advice you can give me is greatly appreciated!
Trevor