All Forum Posts by: Austin Johnson

Hey Clayton, did you ever join this mastermind? what did you think?

Man. you asked what would I do? if I had the $60k, if I challenged the appraisal. if I tried to lower it? if these were my only two options? if I ran the calculator and found out I'd cash flow even after the $60k? i'd spend the $60k and hold on. the market may or may not be softening. but if youre cash flowing, why not ride the waves?

go to Bookstore. search for a book titled "How to Invest in Real Estate" by Josh Dorkin and Brandon Turner. read it. read it again. then return here with your thoughts. 

well, what are your goals? What's the target or end goal? that's the first answer you have to find. 
once you find that, there are multiple exit strategies. for example,

I'm living in my first investment. it's a live in flip. no floors in two bedrooms, 1956 house with cheap peel and stick flooring in the halls and kitchen. rough hardwoods in the living room. I've fixed all the issues, tore up the peel and stick and refinished all the hardwoods. repainted, refinished cabinets, working on the deck now and eventually painting the exterior. it's WORK. but it's worth it and keeps me busy, lol. it's a home and a project. My exit plan is selling this house, 1031 exchange it into either another flip or a duplex, triplex situation and saving on a mortgage.

As far as 'how do I find the expenses?' how old is the property? how many capex repairs does it need now or will it need in the near future (find this out during inspections as well as estimates on costs) add up all the expenses. for example. inspector says "it'll need a new roof in 10 years" average roof is $15k. take that by 10 years. $1,500 a year or $125 a month saved for the roof. go through the home doing that. hvac, roof, fridge, stove, etc etc. that's the most accurate and in-depth method I've discovered.  once you have all that, use the BP calculators. take your own math and check it against their math and see if it's a solid deal or not. I feel pretty smart but there's deal I run that once I put them into the calculator they look horrible. it's a solid affirmation of good/bad deals.  

I hear what you're saying. I'm working on my syndication business right now. however, like @Evan Polaski said, I lack a track record. I'm following a book on syndication (Evan I think you may know a thing or two about Joe Fairless through Ashcroft) I'm working as a commercial appraiser. I have my own live and flip. why dont I just raise money? because I lack experience with multifamily. my day job doesnt afford me income to buy into a multifamily at the moment. it's hilarious when someone has the resources goes ' well why dont you just do it the way I do?'

 So. You bought it, knowing full well there were liens. let 10 years go by and now you're stressed because those liens have had 10 years to grow? that's a pickle....

Did someone drop the ball during due diligence? seems like this should have come up during the property screening phase or at least mentioned by the title company. weird.

my biggest hiccup is if you try to sell it as is, you have to disclose the $6m in liens.  That's going to be a rough sell I would imagine. 

so you have a $3m, 12 unit condo building with $6m in liens from the city? is this correct?

simple. speak with a mortgage lender.
outside of that, read Joe Fairless' book on syndication (currently reading it and he says save/raise 32-35%). read multifamily millionaire 2. read, read, read and call brokers and ask.