All Forum Posts by: Trevor Richardson

There is no direct answer to your questions. The utility questions are determined by the county or city you are in.

The lawn care, utility payments etc are all up to you the owner and the tenants. 

I would highly recommend doing your first deal within 30 minutes of where you live. No book can give you actual experience points. Investing out of state is very difficult.

Underwriting properties is critical, deals are right around you, you don’t need to go out of state to find them. 

This is called a “retrade”. You retrade the purchase price based on the inspections. It is very routine for investment properties. If there are issues that pop up, renegotiate the deal or the buyer cancels. Simple as that.

“As-is” language has to be the most flimsy language/expectations in the industry. It’s hot garbage IMO. Everything is negotiable until the deposit is non-refundable and we see the inspections. 

I’m a broker that specializes in multifamily and single family investments. I have assisted many investors at all different ranges. To me it’s not how many deals you have done, it’s your ability to hop in and get your hands dirty. Here are 3 quick steps to get a good broker working for you.

#1 Provide feedback on deals - I’ve worked with all levels of investors. If I send you a deal or an idea or a list, and you don’t provide any feedback I come to the conclusion that you are not really committed, or something is not working like the market doesn’t work for you. I will work very hard for an investor I know is prepared and on the same page as me. 

#2 Yes go meet with agents. Doesn’t matter who is buying the beer or coffee, I need a little face-time to see not only if you are real, but I’m reading your personality so I can figure out how to work together. Go on a market tour. 

#3 Find an agent that’s qualified for multifamily. This may be difficult. But I don’t think common commercial brokerages do multifamily well because small multifamily is not large enough. They focus on the primary asset classes of “where people work”, not “where people live”. Have you ever seen a commercial (office) agent in an apartment building haha? Residential brokerages won’t have much investment underwriting focus. This makes small multifamily virtually unserviced. I’m not sure what market you are in but try to locate someone who just does multifamily. 

Hope this helps.

Become a real estate agent. 

It’s a triplex, conventional resi loan under 4 units will apply. 

@Wendell Butler to rephrase my question. What is a bad deal to you in NC either on a cap or net income comparison?

What is a terrible deal to you?

Not anywhere west of Denver IMO. The acute housing issues in the West are the underlying issue, not interest rates or oversupply. Here in Reno we are already seeing demand snap back from the interest rate rise of 22. Tenants and buyers hopping all over that stoppage we had half of last year. 

@Nathan Gesner Exactly. In Reno it’s common for rents to be $500 under market for 1br apartments. Let’s take a 4 plex. We have owners who have been at that rent for 7-8 years. $500 x 4 x 12 x 8 = $192,000 lost in income by just keeping tenants there. 

Then they go to sell, and I can proforma and market it correctly but I’ll never be able to get what we could on the open market if they were renovated and sold as a stabilized 4-plex. Long term tenants and lazy ownership have both ran the property down and massively reduced the owners cash flow over years.