All Forum Posts by: Austin Andrews

Joey,

What area is this in? Occupancy? Is there a way to get tenants to pay for water to lower that expense? Do the tenants have to provide their own laundry/dryer or do they come with the building? Flat or pitched roof?

The biggest thing to consider on these is Cap Ex. I.e. how is the roof and when was it last replaced? Does it have PVC stacks? HVAC and forced heat? How old are the systems, such as the water heaters? 

Are the units updated, or could you do some updates to up the rents?

Feel free to PM me if you want me to look over anything. 

Congrats on joining the multi-family investment world!

-Austin

Joey,

I haven't personally done this before, but I would call the local utility companies for quotes and recommendations unless someone on here has an answer. I know a lot of people just add an expense to the tenant's lease stating, for example, $30 added fee/month for water. 

Austin

I agree with the others on himself being more experienced, thus requiring more equity in the end. Although, I would not budge on the 50/50 split. Negotiating lower "commissions" now only makes it harder to raise later. I would explain to him that as he ages and you begin your real estate career, you will be bringing him a bunch of deals down the road. For example, once he is no longer able to physically work on the properties, he can be a silent investor in putting money down, and you take care of all the work to net him a return on his capital. How would he feel in that situation when you then ask for a XX/XX split in your favor? Real estate is long term, and if he tries to gain more equity off the bat from his grandson, he may expect that same split down the road. 

As the others have said, establish the parameters early and clearly. 

@Denny Robert, I shot you a PM

If you are looking for ~300k on a property, why not grab a four unit in a more desired area? As Max said, the closer to Clayton the better when it comes to that area. 300k will get you pretty nice 4-family out in Shaw, Tower Grove, or any of the surrounding areas. 

Hello all, figured I'd join the conversation! 

I'm with the largest mid size multi-family brokerage in St. Louis and would love to network with other fellow investors and discuss the market as well as our investment goals.

Cheers!

Schedule your day, every single day, the day before. Figure out what the best use of your time is, and concentrate on that. For myself, I will study the market, read the local news, and do research in the mornings. I will schedule my meetings around lunch time, usually 10-2ish. I will then cold call from 2-5ish, and try to get more meetings for dinner/night time, or go to networking events later in the afternoons/nights. 

Lookup Scaggs Lawncare, LLC on Facebook. Absolutely phenomenal work!