All Forum Posts by: Will Barnard

Mark,

At this point, it will come down to what return you want on your money. If the expenses are exactly at 50% of gross income, then you have $18,156 of annual NOI. If you want a cap rate of 10%, then the most you can pay is $181, 560. If you want a higher return, then you will have to lower the offer price.
Two things to consider: You ALWAYS want at least one upside potential when purchasing a commercial unit, and you want to have at least two exit strategies.
Remember these are your minimum requirements.

Since you have a 99% occupancy, there is no upside there. You may have an increased rent upside, but watch out, as that could lead into a higher vacancy factor.
Can you reduce any of the expenses by negotiating better rates with service providers or can you improve or force the appreciation through capital improvements? Can you add additional income sources?

Food for thought.

Got it. I will have it to you no later than tomorrow.

No problem Dustin.
Hope the LOI I sent you comes in handy.

Will B.

Welcome to BP Chris.
You have come to the right place.
Lots of info can be found as well as multiple opinions on a variety of topics.

Will B.

Katrina,

To add to Jon's comments, it is not necessary to have the friend's IRA funds transfered to a checkbook or IRA LLC such as Guidant for your deal together. The IRA LLC is advantageous if and when you as the IRA owner, invest in time sensitive investments. It would only take a few days to get the money funded by requesting rush service (which does incurr additional costs). I say this only because it is much more costly to set up an IRA LLC rather than using the traditional administartors such as Equity Trust (in my opinion, the best).

As far as setting up the contracts (promissory note and deed of trust), I can help you with that. I do them all the time and can get you a format to go off which could save you hundreds, or thousands of dollars in attorney fees.
Contact me for info.

Matty,
I do have a great questionaire as well as a system Michael and I have developed over the years which has been very effective. We also are very demanding of PM's in how they run their business, as essentially, it is "our business". If they do not like that, then see ya!
The information you are requesting can be found in our educational program, "investing out of state or your own backyard" which also includes forms and checklists which are derived from years of experience, mistakes, education, etc.

The forms & checklists CD is the one we often give out at Rosie's events as well as other RE events. Since we have already met in person and developed a relationship, I will get that CD to you.
Do I have your direct email? Are you on our join our investor list database? If not, send me so I can send to you.
My email is found on our website.

I will have to diasgree with you. Just because you had some poor experiences does not make the strategy a poor one. You simply must have made incorrect decisions on the hiring of your managers. I am not saying that I have never had to fire a manager, I have, but on the whole, I have been very successful and that is due in large part to my knowledge and experience with interview, hiring, and negotiating contracts with managers in my favor giving me the protection I need to be successful.

Again, what if you do not live anywhere within driving distance of cash flow re opportunities? Are you to forget about re investing? I say no. Learn how to "build" your team with quality personel. Of course it is not a full "hands off" approach. You must manage your PM and having the skills to do that can also make the difference between good and bad experiences with PM's.

Thank you Mike for your view on the article. Until now, no one actually made a comment or oprinion on this article, just went off on tangents, so Thank you.

To follow up with your insight, where does your view leave us in regards to buying investment RE? If we do have a "collapse of the economy" and possible anarchy or a dictator taking over, what is your opinion on the strategy we as RE investors should be taking?
Should we stop buyin, continue buying, sit on the fence, or move to another country?

Will B.

And to add, you say prices are dropping but will turn a 360 by mid next year. How do you know that?
From your girlfriend's father?
Please tell us you are not basing your investment decisions and advise on one man's personal beliefs!

Mike, thats because you do your own management and repairs. Others are looking to have more of a "hands off approach or do not live near areas that are condusive for cash flowing properties. For those, they need to have great management, CPA, tax attorney, eviction attorney, handyman, etc.

With that said, it makes no difference if it is the state next door or across the country, so long as you build the right team.