All Forum Posts by: Jennifer Lee

I think I would go with what you are comfortable with ;p

When I first started I was happy with 4-6% return.  But I wanted Grade A, good school areas. Buy-in is much higher. and I wanted the RESALE and Appreciation as an exit strategy.

I am a realtor now, so I meet clients that wont touch it unless they can get 15-20%.  While we are looking for something like that.  I bought 2, 6-8% units... and making rent...

My clients says I am crazy b/c My units are each 200K, and they only have 200K... 

They want to buy 5-10 units with their 200K.  I have a client that is successful with that making double digit returns, but headaches galore.

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What are your numbers? I got confused:

Triplex, 

Rent: 

Owner unit: 1500 for 2.5 month ( 600/ month?) 

Apt 2-3: 1600/mo total? (800/month)

Is Gross rents : 2,200/month ?       

That used to be my area too, I had a commercial property there.  I sold it off b.c I was self managing from 10 hours away.  That is a very transient town, all my contact has moved.  

Let me see if I can contact some of my peeps and see if they have any referral.  My contact was good but she moved to do more chamber of commerce and quit the realtor side of her business

I have a lot of friends that couldn't sell their homes, and had to rent, I have put out a word, I'll let u know if I have anything

what is the reason for 5 months vacancy?

@Tim Evans so true,

I buy from "bad" landlords, so when it was my watch, the township came at me with Elevator, Sprinkler, security, handicap and upgrading utilities etc...  

You are so right about the "treat them as god".  And keep them in the loop. I tell them, It's on my list, i just bought the unit, you need to give me a generous time frame. 15,000 sqft of bldg (6 units), is a lot of deferred maintenance to handle right of the bat ;p

I second @Wayne Brooks and @Rich Hupper

I disclose I am an agent on my own listing (rental and sales)

Owner is Agent, Landlord is Agent.

Landlord is Agent, or related to Agent works to my benefit b.c potential tenant knows they are dealing with the mouth piece of the property. We can negotiate right on the spot.  And usually contract work is not that big a deal b.c renters are experienced with dealing with landlord and we just draw up a rental agreement and do the background check.

Seller is Agent: that is a little tricky, so I will answer my calls as: I am owner and agent, if you want to use another agent I understand.  or when I talk to an agent, hey I am also owner, you just represent the buyer, we good?

Investors that I know who doesn't get license are ones that found good Investor friendly agent and/or have access to MLS. They will call their agent to "buy" the house. Also my investors claims that without a license they can focus on other task/marketing without the realtor hindrance. A yellow letter from an investor, in my opinion, is more powerful than a I can sell your listing letter. Also when you list a property with MLS, you broker is in on the deal "every" time!

Also, when you do creative financing it's better you be your own boss ;p  I was in a brokerage firm that had a problem with me choosing to work with investors over the $1M home.  Everytime I bring a short sale or foreclosure business, I get a talking too.. so I left to a brokerage friendlier to investors and investor realtors. 

I always tell my Clients to FIND THEIR MARKET AREA first.

what is it they want to do?  If they decided to do buy hold, WHAT TENANT POPULATION do you want or can handle?  This usually determines the PRICE YOU CAN AFFORD. 

FINANCING: That is the SECOND if not FIRST Question I ask to, DO YOU HAVE THAT IN ORDER?  Todays market moves fast, inventory is slim... Good Deals get snatched up quick with ppl with their funds in order.

All the other questions are secondary but important:

DO YOU HAVE ALL YOUR PPL LINED UP: Agent, Vendors, closing company, attorney and accountants etc.

@Tim Evans  Thank you that is helpful.  I think my wetland situation is the small creek that runs behind the lots.  it just happens to run into this lot. 

You are right, talking to county and bring the rendering is definitely a good start.

I did that a few years back, as a green newbie, and the person behind the "power" desk, wasn't very nice, and made my 'life" miserable.  But that was a different county, not business friendly.  Now I do my research and looking for counties that works with developers and investors.

Counties that have issues with current landlords not doing the right things tends to take it out on the new owners to bring everything up to code ASAP.  Relationship with county reps is key!

HI BP

It's been a long time since I have posted.  I have a NEW CONSTRUCTION, VACANT LOT buying question:

My experience in Real Estate since I found BP has exponentially grown.  And now I am charting in uncharted territories (at least for me).

I found a vacant lot, in a good SU-1 Zone (Special Use) in a commercial center of a growing town.

The lot, caught my attention, because it was listed at a fraction of the price of "regular" lot.

So immediately, I thought SOMETHING MUST BE WRONG with it.  All the lots surrounding it has been developed (USPS, big box stores, Hotels etc)

We did a driveby.  The lot is relatively flat and it slopes to the back.  We found that there is a CREEK that runs by the back of  property.  I have access to RENDERINGS that the seller provided, approx. 2/3 of the 2.5 acres is designated WETLANDS.  The renderings also provided possible uses; medical, office, retail and restaurant positioning 

I was looking for something "small", the proposed usages are:

 * 6500 sqft medical/retail office with 40- parking was what I am looking to do.  

* 13,000 sqft 2 stories (10 unit apt or 8 unit office ). 40+/- parking ( I already own 2 of these types) or 

*  3500 sqft restaurant with more parking (I already have a restaurant unit, so don't want to go there)

I looked at the pricing, the lot is 1/3 of market price, I assume b.c 1/3 is buildable 

1. HOW DO I DO DUE DILIGENCE?

- I looked up all the zoning and futuring planning plots and map, my goal is inline with what the county wants. I haven't talked to the county yet, didn't want to rock the boat til I am sure.

-I have researched new construction: $70-150/sqft depending if it's medical or office

-Rental in area is $15-25/SFT,  avg is $18/SFT

-I talked to my finance guy, and if my husband was to use the medical office, financing would be in a better position (this is unknown right now, we toyed with idea)

2. WETLAND: This is what scares me as a "newbie", should I move on?  

-my experience with commercial is I have bought several existing building and have dealt with bits and pieces of commercial real estate. Dealing with county to do improvements, leasing business use issues. and landlording/maintenance.  I have my vendors and players in place.

-NEW construction experience: building our live in flip with builder, and helping client with new construction buy side...that I think doesn't really count though.

3. WHAT ARE THE COST ASSOCIATED in BUILDING A 10 UNIT APARTMENT FROM SCRATCH?

- I have done enough rehab and worked with my GC long enough to know what an a la carte cost of bathroom, kitchen, roof etc are.  I was surprised my number was off by 50% (hahahaha)

- I know there has to be some pre construction cost, architect, engineering etc...

These are my major questions right now.  I have more, but if I can't get over this hump, I might pass. 

EXIT PLAN:

1. BUY/HOLD: Land lease, or build to suit when tenant comes along

2. BUILD MEDICAL/APT BUILDING and RENT  

I agree there is an inverse relationship between rent and risk. having sold McKeesport and Mt. Oliver, Hill district, and almost shot at in Mt oliver... I make it a point to make my investors understand the real risk in the area.

there is for sure a huge margin but that comes with mega headache.

I invest good school district. North allegheny and North hill.  I also invest in Multi units to make my margin better and spread the risk.

my portfolio also includes commercial shopping center.  

interesting  ;)

I'm the Ying and my husband is the Yang.  but I am the mouth piece of the Yang. My husband never comes out unless necessary.  and usually no one wants him out in person.

I guess my version is good cop-bad cop. or me with a big stick.

I can't do yang and he can't do yin. so we formed a good partnership, but not without its difficulties.