All Forum Posts by: Trevor Scheiderer

Hey Spencer! As far as investing in your first deal, many of the previous BP podcast episodes say that this depends on your specific situation. If you plan on getting something with 4 units or less, you may not need it. In the end, it comes down to whatever advice you decide to take from your lawyer. However, an LLC is definitely not an absolute requirement to get into real estate. Happy investing!

Hey Jonny! Definitely get her response in writing that she has decided to vacate on her own and have her include the date she decided to vacate. From  there, you can determine if you want to hold her to the lease, or forgive and re-rent to another tenant. Since she broke the lease, maybe work out a payment plan for half of the missed rent. I have seen that happen before for broken leases. Good luck and happy investing!

Hey @Glenn Martin! The loan fees look a bit high, but your other costs look fine since most of them are due to escrow and property tax. I would recommend going to the bank and seeing if they can do something with the processing or origination fees. The worst thing they can do is say no, but at least you asked. Other than that, if the deal is good enough the opening costs shouldn't make or break the deal anyway. I would worry more about rehab costs (if any) and seeing what you can do about the rental income. Good luck and happy investing!

Hey Glenn! What advice do you need? Its hard to make out this picture from the small and blurry font. Thanks!

Hey Jessica! I ran into the same thing in Brooklyn. NYC as a whole is a very tricky market. But it is important to know that just a couple hours outside of the city are home to many many more deals. I know there are many NYC investors in Philadelphia, and NJ right now. If you want more information from local investors, I would recommend going to a Tristate Real Estate Investors meeting. There are so many quality connections there and so much opportunity to learn. Good luck and happy investing!

Hey Rich,

This is really up to you and the other partner. If they value the appreciation amount more than the rental income, they may want higher equity percentage, which would give you a higher percentage of cash flow. If they value the rental income more, it would be the opposite. In hindsight, it comes down to what each of you value and what you can come to in terms of agreements. Good luck and happy investing!

Trevor Scheiederer

The nice thing about recession is that you are able to live through it, business as usual with cash flow. The hard part is if you have luxury units that demand a premium. Those are the units that will get hit first. Then, from there, its time to start buying in bulk because deals will be easier to find on the foreclosure market, if that is the case. Looking forward to being able to say that we lived through it and made money at the same time. Happy investing!

Hey Derek! Personally, getting somebody local is always nice, but it starts to bring emotion into the numbers. Sacrificing cash flow, especially $100-125/ month is a very large amount, especially since it is a SFH. It is possible to find good renters outside of the location of your rental. Will it take longer to find them? Possibly, but it may also be shorter. You don't know unless you start advertising it. If you could rent it to someone in town for $775, see if they would go up to your $900 amount if you can add an amenity that makes them believe it is worth the added cost. Hopefully that helps. Happy investing!

Hey Jason! Of course you can be successful in all 3 areas. It is common for people to invest in a wholesale for example, 5 or 6 times before trying a flip. Then they will try that 5 or 6 times before buy and hold. That's not to say that people become comfortable investing in a buy and hold, etc. People stick with what they know, so if they are good at at wholesaling, they will stick to it. Hopefully that answers your question a bit. Happy investing!

You definitely need to get confirmation from her that she has moved out and is no longer being charged rent for this month. If she owes you 6 months rent, I would be more concerned about trying to get her new address so you can try to recoup that cost. Good luck!