All Forum Posts by: Ujwal Velagapudi

Bought a mixed-use apartment/office/light industrial complex, off market from a retiring seller using a bank loan at 25% down, and was able to 6x my initial equity in 3 years. The cash flow was just icing on the cake. 

If you're leaving them, then I'm sure they were lacking in some areas, so I wouldn't wait for them to reach out to you, hand over keys, inform tenants, train the new PM, give you a log of all the pending items/P&L/rent ledger, etc. I've gone through a couple of these and the transition is the point where we as the investor need to step in heavily to make sure it is as seamless as can be. They probably aren't ecstatic that they've lost your business, so it'll be on you to push them through this process and make it clear they still are supporting you through the end of your contract. 

Get a full breakdown of everything that is going on with the property, tenants, etc. Simultaneously try to get your new PM acquainted with things even prior to taking over. I had planned for my transition for about 2+ months, slowly discussing with the new PM, then about a month prior providing all related documentation. The last thing I gave to the new PM were the keys, but they had all other information to get started a couple of weeks prior to my old PM's contract being terminated. 

I don't have STR's, but as a heavy Airbnb user, I definitely agree. I sift through the reviews, and don't care for the poorly written low rated reviews. Sometimes I actually want to see something negative, I actively seek it out because as you said, I want to know that they're real. Even the greatest hosts aren't perfect, so it helps to see a few 3 and 4 stars as long as the overall rating is very high.

Depends, but you'll most likely find better rates with a private lender, especially someone you have a good relationship with and can leverage that for good terms. You can use your network, past clients, etc. to see what they will offer, and especially if they have worked with you before. I'd have a few conversations with hard money lenders as well just to see where they stand, I'm sure they come across 1099 earners vs. W2 often enough. 

It depends on the state laws. I had a tenant pass away in my unit, and had told my prospective tenants. When I sold the building, I also told the buyer. When I was buying another building I was told from the seller of a recently deceased tenant in one of the units. So just check your state laws and disclose as needed. If it's an apartment complex, whether or not you tell them, stories will spread if neighbors talk, so just better to be upfront in my opinion. 

<$1M? It's hard to gauge without rough location, tenant history, capex needed, etc. but I'd say somewhere around that $1M range assuming a low teens CAP after all negotiations. Also some C's I've seen are really D's, and some C's can also be in extremely pricey metros. I definitely agree with @Todd Rasmussen also in that so many out of state investors buy out a lot of these C neighborhoods, over paying in a lot of cases or simply getting duped by terrible PM's/sellers. 

I have never converted water meters, but had the thought on a 20 unit and 28 unit and was just told not to do it. Was told it'd be too expensive, and not worth the hassle with having tenants pay for it. It was also in a C neighborhood. If water utility can be a lien on the asset in your city, then it's best to have the landlord pay it and bill the tenant. 

I would not just take a couple of no's to leave this be, but we're assuming this is just as amazing as you say it is. I would continue to stay in touch a couple times a year, it might not happen today, or next year, but you want to be the first call they make when they think to sell (whenever that is). It could be a long game, but having a growing database of "amazing" properties that you hunt down could come back to call you one day. As for what you say when you reach out, I like @James Hamling's style. 

I wish I had a crystal ball, but the best thing I've got is what I see going on in the market and my gut. If congress doesn't come to terms this week, it won't be till early Sept. till they reconvene and renegotiate. This would leave the unemployment and eviction moratorium deadlines at the end of last week. So I think we'll start to see the ripple effect starting September's rents (if y'all haven't already). Government can assist to keep things afloat for longer, but I don't see how long they can possibly keep doing it. But I think the house of cards will be falling once they stop funding, and once the ramifications of the trillions catches up. 

I still think real estate will be impacted much later, for the most part. Local courts have been pushing out the eviction filing dates, and with the onslaught of new cases they're bound to see, I think it'll be many months before cases get resolved. Especially with limited staff at most of these courts. As for banks, I am not sure on this front, but I don't think they'll be holding out too long unless they themselves get more federal aid. I don't think real estate as a whole will really start to see the impact until Q1 2021 and into 2022. 

Like you said the situation won't change as soon as you buy it. I think safer bets would be if the rental you buy is occupied with folks that have stable jobs (and throughout the last few months), a property with already value add opportunities, below market value, etc. Personally, I am keeping an eye on listings and scouting around to find anything good off market, but I do not actually think I will make a purchase until at least mid-2021 or if at least a few of the many uncertain variables in the market are somehow magically gone. 

I'm not surprised that they turned it down with the 7a, I've gone through a couple rejections this year too with everything going on and banks' tightened underwriting guidelines. But could you piece this out and just have the business 100% seller financed, contingent on getting cashed out for the real estate (via a bank loan)? But for a traditional lender, or even a hard money lender, I don't know if a 90% LTV is possible but you should be able to much easier with 25-30%.

If you have a full ride, take it and go to college! Even though a degree is gradually becoming less important, we unfortunately aren't quite there yet where you can completely opt out (unless you have serious domain expertise like being an expert coder). 

I would go to college, get a degree that will allow me to get employed. Think technology, business, etc. My focus would be less on school and more on getting an internship, to ultimately secure a job.

Simultaneously, I would be doing everything I can to get into the investing/business world. I'd get my real estate license, work as a property manager or assistant for a mom & pop investor/PM company, and get a mentor or two. 

Given your hard work in high school and you earning your full ride, you'll actually be able to start out as a college graduate with a positive net worth, a job, and no debt if you make small investments along the way during college and live frugally. Going to college doesn't mean you cannot invest, you can certainly do both.