All Forum Posts by: Alpesh Parmar

I think there is lots of competition with inventory being really low. I am guessing by end of next year, Bay Area market would've cooled off.

I am not an RE agent but wanted to become one just to get write-offs and learn more @ the local market. Decided not to do that as I didn't want to invest in Bay area market.

Depends on the area and the broker you are working with. I am doing a quick close on a property (15 days close with conventional loan) and I am paying 5% in closing costs and it doesn't include taxes/insurance etc.

Why is the lender only doing 70% LTV? Are you getting a commercial loan or conventional loan? I am able to get 75% LTV on conventional loan for all my investment properties.

Originally posted by @Account Closed:

@Alpesh Parmar

Thanks. Question was what type of neighborhoods where they in?

Also who was the PM that did not meet your needs? 

Did you try different PM's?

Do you feel that maybe you could have done more to ensure you mitigated your risk as much as possible? If so what could you have done differently?

 Both were in C neighborhoods. My first PM was Homeinvest - turnkey company managing properties themselves. Finally, when I switched PM, I was ready to sell and move on.

I build my team and even if it's TKP; I visit them and look at their operations. One more thing, even after buying from TKP; always get a third party inspection done. Never go with in house PM so they are working for you and not the TKP.

Sandy Uhlmann follow exactly what Todd Dexheimer mentioned. Don't try to do this directly with IRA and other investor. At LLC level, you can set up % by membership units or how the profits would be distributed.

Originally posted by @Account Closed:

@Alpesh Parmar

Do you mind me asking you a few questions about the investments you held in Milwaukee? 

By the way that is a great idea you suggested to Ernie.

Jorge

 Sure @Jorge Ruiz. You can ask the questions here but if they are unrelated to this topic, Feel free to PM me.

Originally posted by @Ernie V.:

Originally posted by @Alpesh Parmar:

@Ernie V. I am sorry to say but Milwaukee is a tough market. I am so relieved for selling both my turnkey properties there this month. My PM couldn't even put a tenant for 3 months (Aug, Sept, Oct) after getting it turned over. Finally, when we found a tenant; we had to reduce the rent.

I think you should use a listing service or PM company to get your property lease. You don't have to use them to manage your property but they will have a professional team which can market your property in lots of different website and through different means.

 How long have you been investing in Milwaukee market? What was the hardest part?

 Invested for couple of years. Weather and unreliable PM didn't help.

I love HELOC. If you go with right bank, there shouldn’t be any closing costs, appraisal fees or any type of fees. I have around $150K in HELOC and I am using that to acquire properties and doing BRRR by refinancing the property and getting most of the money out. Basically, rinse and repeat this model and leave may be 10-15% of money in the deal instead of typical 25% down for investment properties.

@Ernie V. I am sorry to say but Milwaukee is a tough market. I am so relieved for selling both my turnkey properties there this month. My PM couldn't even put a tenant for 3 months (Aug, Sept, Oct) after getting it turned over. Finally, when we found a tenant; we had to reduce the rent.

I think you should use a listing service or PM company to get your property lease. You don't have to use them to manage your property but they will have a professional team which can market your property in lots of different website and through different means.

@Robert T Boll great idea. I live in Nor Cal and haven't invested in California. I wouldn't invest in Cali for appreciation. Appreciation is a gamble and it's on paper till you sell the property. I have seen investors losing their shirts here in SF Bay Area during downturn of 2008/09 because they were over leverages and banking on appreciation while generating negative cash flow. I personally know 4 investors who are not even able to afford buying a primary home for themselves because they had to file bankruptcy.

It may be a good idea to diversify your portfolio by having an unit or two in strongly appreciating markets. I do think though California markets are ripe for correction. I am generating enough cash flow from my investments in Atlanta and Birmingham and that's what I want. I need monthly cash flow and not a lump sum amount when I sell. If the property has appreciated like crazy then when I get a huge payout, Uncle Sam will also take a big cut unless I jump through hoops to get a 1031 exchange.