All Forum Posts by: Paul Cijunelis

I should also add my standard practice is using 55% rule, not 50%, just as an added cusion. (can one add attachments to posts here?)

Joel thanks. I am looking at 4 properties similar to this. Two have the "costs data" and two do not. For the two that do, their costs are listed as around 40% of the gross for one and a low 31% for the second. I assume as investors we should assume these figures are not factually representing long term costs - the owner cut costs to maximize profits last few years and the building is going to need more TLC up front?

FYI I have not physically viewed the properties yet as that would be a waste of time if the numbers don't work.

I know the 2% rule slides depending on the cost of the building...I'm looking at a 4 unit bldg now and trying to figure out a good way to evaluate these properties never having done a multi unit.

the GRM is an 8 and the 2% rule is at 1.01%. ROI I get for 100% down is 7.5%. If I finance, that goes higher obviously but I like to see what it would be as a cash deal minimum (baseline value). 30% is 10.5% return (this is chicago keep that in mind...).

Are these decent numbers for a 4 unit? How do you guys eval multi units?

I understand longterm the SFR is probably easiest to sell to cash out but if I am going for apartments/condo style properties, are 2br better than 3br?

3br seem to me to be harder to rent since people will usually have only one room mate or want to live alone and prefer a 2br for a guest, office or just extra space.

3br seems harder to rent. What do you guys think?

From a tax perspective, after consulting a CPA friend, these are pretty much the same. At this point I want to start up and incorporate but am unsure the legal differences.

I am forming a partnership (two people me and another)

Instead of taking two trips to the lawyers office, one to ask btwn Scorp and LLC and the next to get our paperwork drawn up for the actual partnership after incorporating, can anyone offer advice as to which is better to get started and get the company created?

Why not just have your bank write a proof of funds letter?

Well I might do that now since this seems to be a problem...I understand the waste of time issue, I have explained myself and am waiting to hear back. Thanks.

Can a realtor refuse to show a property? Is there a legal or ethical issue here?

I asked to see a property and was told "without a pre-approval for a loan we don't want to show the property"

I don't have pre-approval from a bank and this is because I have enough cash to pay for it, so didn't see the need. I'm sure if I change my mind and want to do a loan, due to my financial status a bank will surely provide a loan. So I don't want to go through the trouble. Why should I? It is the realtor's JOB however to show a propertly. How can they refuse based on any reason?

Steve thanks for the suggestions. I have a few referrals already for an attorney but I'll certainly take another one if you don't mind. I'll be in touch when the time is right...thanks again.

Besides an operating agreement and insurance for each of us (in case one gets hit by a truck his wife will get control, etc.), what else should I think about?

Also, what does "charging order protection" mean?

We work together and we are both hard workers. We've been working together for 15yrs. We both make very well at work and saved up a nice amount to invest. We both travel (not together though) and since we plan to do a LTBH strategy of rental properties to build wealth for our newborns (we both had kids recently), if something happens, usually one of us is around in town. We both also know a lot of contractors/handymen and we both can get our hands dirty. Personally I built homes, and rehabbed every house I ever lived in. I can do electrical, plumbing, etc. So we think it makes sense to partner up.

Also, i feel this market presents some opportunity that may not be around in a few more years. We'd like to take advantage of that if we can.