All Forum Posts by: Benjamin Aaker

I recommend it. I think having MLS access is great to calculate comps. You also get a check at the end of the deal in a lot of situations. Downside is that at least in my state, you have to disclose you are an agent. I think that makes some people nervous that you must know more and are trying to trick them. Disclaimer: I have a license.

OK, so not that exciting, except to me. I need to get the collective computing power of BP together and make a ruling here: A tenant has moved in and is under a year contract. I placed new PEX plumbing prior to move-in. Tenant now requests a water softener (we live in a very hard water area) due to clothes not being clean, stains, etc. The plumbing work will be easy. Lease won't let tenant change anything without Landlord's approval. What is the best response?

A: Landlord has an obligation to provide clean water, suck it up and buy it.

B: Hard water is bad for your plumbing, buy it hopefully to decrease future repairs.

C: Water softeners, like under-sink disposals, ice makers, ceiling fans, love to break and cost you money. The tenant should have inspected the water before signing. Don't buy it. But let the tenant buy/maintain it.

D: Same as C, but don't let the tenant buy it.

So, what do you thing? Feel free to simply vote; or, explain your selection.

Hey Gunnar. That was you! Keep finding those deals.

I am not certain of the rules, but I knew a wholesaler who would assign the contract to the buyer. I never ended up buying from him, but know of some who did. I think the buyer would end up knowing how large was the wholesaler's cut in that scenario.

Hi April, and welcome! It seems your goal is buy/hold. Have you considered renting out the flip house right now? Depending on your bank, you could now or later refinance or get a line of credit and use that to buy the other houses. Flipping is a good way to get cash, but I don't like selling an asset that could be a good rental. My first rental was an REO that was trashed. My wife and I basically lived in it and fixed it up, intending to sell, but we decided to rent it out and take out a line of credit. Now, that money is handy for any down purchases that I need quickly but it is not cash sitting in the bank getting basically no interest. I'm glad I kept it. It'll be paid off in a few years and then be a money generator. Good luck to you.

@Kelly Byrd How did your offer go? We have a contract on an 8 plex. We asked for 3 years of rent roll, 5 years of insurance claims, copies of all leases, 3 years of expenses/income, any verbal agreements with tenants, liens and liabilities.  I'm just starting as a Broker's Associate (South Dakota) and forgot to put in Security Deposits. I realized that after they countered and added it in. It's a learning process. Good luck with yours!

Welcome. I'm hoping to close on my first multifamily, in Sioux Falls, in September. Lots of big apartment buildings going up around here but the smaller multifamilies seem to be doing well. I got my start in single families and I recommend starting there.

Just think about why anyone runs the credit check:  You want to know whether they will pay the rent. Obviously the credit check won't tell you this, so you need to get as much information together and make a case by case decision.

Since you are considering purchasing the property, I recommend getting the information from the landlord. The landlord may have already done a credit check on them. You might request this as a contingency in your purchase offer. You definitely should request the rent roll. BP has a forum for multifamily and I'd suggest looking there for tips. I'm just starting in multifamily but it would be strange for me to suddenly ask all the inherited tenants to do a credit check. The checking should be done on the due diligence end when you are negotiating with the seller.

Good luck!

I would recommend waiting until you have more of a plan for your business. I made cards once with my home phone number, then decided I didn't want to give that out to everybody and had to remake the cards. The networking will be based on your personal interaction with others at your meetups. If you find someone you can make a deal with, you won't need a card. Just get out there and meet people! Good luck.

Congratulations on the multifamily contract. I made an offer on a MFR two days ago. @Kelly Byrd I'm curious, what kind of due diligence are you doing?