All Forum Posts by: Jared K.

@Samantha Lotti Thank you, hope you figure it out.

 Great advice right there!! Love that book too!!

@Bobby Valcin  I think back when I started and I remember having a lot of paralysis. Sometimes it still creeps up on me when I am not looking or have had several deals fall through, been kicked in the dirt, or  put down by a scumbag investor who thinks he owns the world and is better than me....well guess what, THEY AINT!! I have learned to let negative criticism and fear piss me off to the point I say "Nothing or nobody is going to determine my future and I will not stop until I get what I want". My point here is when you do develop a burning desire to have what you want you will not let fear (paralysis) slow you down. Just make up your mind you can do it and dont give yourself time for fear and fail forward until you get there!!

The best thing to do is to take action and get a move on!! 

I have had Realtors and brokers lie to me on a number of issues. She was either told that by someone that didnt want any competition or she doesnt want competition herself. Either way I doubt there is any truth to it unless she was refering to the contractors license as mentioned above and maybe she just got it confused. I would call your local association of realtors and ask them, find a credible source such as government offices or real estate teachers at your local college for your answer.

Good luck

Your lease should hold up in court if it makes it that far. I would confront him immediately and give him the option to vacate in 7 days (have him sign a typed agreement on the spot) or court with a judgement, his choice.

@Ryan Mullin send it to me too.I have looked at some option but yours may be better

Good advice by @Jon Klaus . I have found several on craigslist and advertise for them too. You can also drive for dollars by just driving through parks and see if any are for sale there. Look in your local paper, go to dealers, and look on facebook for properties for sale in your area. Call some brokers, they may know of some cheap ones for sale or places to look. You are bound to turn up something but its all about putting yourself out there and putting in offers.

Hope this helps.

Apartment buildings are great and they also have so many moving components that factor in the returns. Sometimes its all capped out and overvalued and sometimes there are huge opportunities for growth that are not being utilized such as adding a laundry facility, vending machines, garage parking, storage etc etc etc. 

An apartment building like you are describing may have many later ownership advantages on the back end v/s the cash flow from the start on the front end. It really depends on the property value increase percentages in that properties market year to year, the % rent increase values per year in that area, and your investment strategy as well. 

If the property is in a high growth area, stays occupied, and is now low maintenance after rehabbed then it might be a great investment. I have recently researched these types of loans because I have been looking to buy more multi units as well and I have not purchased in a while. They do offer 30 year loans and some 35 year loans for this type of property. The loans are really different compared to residential.

If your tenants pay the mortgage for 5-10 years and you break even each year then sold it you would still gain on your equity but it depends on how you invest and the opportunities in your area. Some people would just buy this for a tax write off and differed gains, not me..lol. If this would be a long term hold and there is room for rental income growth each year then you would gain cash flow each year while the asset pays for itself thus building in cash flow and value. 

Some people will refi a place like this every couple years to buy more properties once the equity is there or they will refi the remaining 25 year debt amount for another 30 therefore creating cash flow after 5yrs. To some, not all, this is their investment model and they have the money to do it. They are just looking for a place to park their $$ for tax purposes and future return on investment.

Be sure you see actual #'s on this b/c as Paul stated above there is always maintenance costs that are "properly in line" for the age of the asset, even if rehabbed.

Myself I need cash flow right up front or its not worth my time but it varies for every market and investor. Some people are more risky than me but I like a safe investment.

Check out Ken McElroy here on BP, he has a lot of material and knows his stuff!!!! You might figure out more from him on this answer than anyone on BP can offer.

Here are some links that might be of help also.

http://www.biggerpockets.com/renewsblog/2013/06/21...

http://www.retirerichfromrealestate.com/How%20to%2...

Structure the deal as follows so its a win-win situation:

Scenario 1: Keep the JV equity where it is so the return is the same for all parties. Take the extra cash for rehab and offer a set return (% or amount) to that investor but make sure all JV parties agree and have knowledge of the funds.

This will allow you to build report with the $5K investor for future deals and its less out of your pocket. You can always set this up on terms that benefit everyone such as distributing the initial returns for "X" # of months back to the $5K rehab funding investor. Once those funds are paid back all the initial JV partners will see bigger returns for the remainder of the investment.

Scenario 2: Take the funds and apply as a down payment for the next deal. Tell them the $ will e in an account until the next deal arises and once applied they will be notified and the repayment profits will start.

My thoughts are take it while you can get it and find a way to make it work so you can build a long term relationship with them and do bigger deals later because you never know when you might need that $ and if they dont invest it with you now it may disappear or be invested elsewhere drying up your source.

Just my opinion but hope it helps.

I have owned multi units for over 11yrs and I believe they are the way to go. I look at several formulas when I do an evaluation but the first thing I look at is the market. These figures don't work in every market so you have to ask yourself "Do these #'s work in my market?" or you could over spend. In some markets this would be a good deal and some markets it would not. Some places in the country your return should be higher than others so you might get a higher % return on rents. Not saying the formula don't work, just not a big fan of it. Look at some recent sales, find out what rents are for the properties, then figure cap rate for each, look at your property area based on that and run the #'s. This should give you a more in depth idea what true returns are for your property's area.

Since your a Realtor you have a leg up on market rents, desired rent areas, sales prices, and average vacancy rates for the area of this property so that is great! I bought my first multi at 26yrs old and never looked back, been 11yrs ago. The only way to own one is to just do it and learn along the way, just buy smart and run those #'s!!!  Once you own it for a while you will look back and laugh at how nervous you were to buy it..lol.

Best of luck.

I have made lots of offers and only sent $100 when the offer was accepted to the broker. I just told them I buy/sell in several areas and I wasnt going to tie up $1000 at 5 brokerages but I didnt mind to buy if they could work with me.

On the other hand I used one agent in another state that made all the offers for me at other brokerages so it goes both ways.