All Forum Posts by: Ash Patel

I have never closed an LLC because they are free to keep open in Ohio. I have been recycling them for subsequent properties. After reading these posts, maybe not the best thing to do. All of my vehicles/boats/ATV's are under their own LLC for liability purposes. Maybe I will start recycling them to vehicles instead of properties.

I too have received checks made out to LLC's after I have closed the bank accounts. I simply endorse the check, "Pay to the order of" and have always been able to deposit the check. This is on the advice of my banker.

I bet the current owner has not done much to improve the property either.  As soon as I buy a property, I redo all of the exterior lighting.  Make it glow and stand apart from the rest.  Add cctv camera's and repair the parking lot.  This lets tenants know you are not another slumlord.  They get a good feeling about leasing from you.  Find out what their concerns are and address them.  As their leases expire, you will be in a better position to increase rent.  As @Jessica Zolotorofe mentioned, find out what improvements they have in place.  This will help you gauge the amount of increase that would make sense. 

I think most people appreciate the hustle cold calling takes.  Introduce yourself, state the reason for your call then ask if you can follow up in xx months.  Maybe ask their preferred method of contact, text/phone/email.  If they don't respond via text/email, call them.  Start building a database.

I've seen this approach work over and over again but it can take time.  Recently, a friend of mine landed a mobile home park after over a year of lunches, emails, phone calls.

@Kristina Modares - you have all the cards in your favor if you are working on their lease. A NNN lease would be ideal but may be too much for the tenant to swallow. What I always do when I inherit a tenant is throw them a bone. Tell them you will upgrade all of the exterior lighting if they clean the hoods/vents regularly and service the fire suppression equipment annually. The bone I typically throw benefits the property. Things like CCTV cameras, signage and exterior lighting go a long way with tenants.

My first purchase was 3 units over a grocery (mostly beer) store in a college town.  The building was 130 years old and after extensive rehab was very profitable.  Sold it years later to the store owner at a price above market.  

I love when tenants improve my properties!  I would make sure you get to sign off on the plans and all work is done by licensed pro's.  As Joel mentioned, I am not a huge fan of giving money upfront.  If they insist, you can opt to pay for some of the improvements that stay with the property and will add value.  For example, you pay for fire suppression or remodeling the bathrooms.  This way, they can't blow your money or take it and run.

I am a buy and hold CRE investor but have recently sold a few to coastal buyers willing to overpay.

@Kristen Daniel, If you are looking at property in the 7-figure range, I would advise getting a loopnet membership and diligently study the area you are looking to buy in.  I've dealt with the large brokerages including the one you mentioned.  Joel Owens is absolutely correct in that their primary goal is to churn and burn.  

I would get a loopnet membership.  Plenty of 10-20's out there, especially in the midwest.

I am 41 now and bought my first home at 25.  I bought a home after people kept telling me it was such a great write-off.  In hindsight, I wish I hadn't.  My weekends should have been spent hanging out, meeting new people, skiing, road tripping, going to festivals etc.  Too many of my weekends were spent doing yard work, repairs, rehab etc.  I think the Millennials will purchase homes but just later in life, similar to marriage.  

What is crazy is that I've heard so many Millennials state that they are waiting for their student loans to be forgiven before buying a house.  Even young doctors and lawyers are EXPECTING the government to forgive their student loans.  Many of them have started paying just the minimum because they want to profit the most from the student loan bailout.  This is a massive bubble as student loan interest rates are at 6-7%.