All Forum Posts by: Benjamin Aaker

Quote from @Sai Vipparla:

@Benjamin Aaker I'm wondering the same thing! Went to go buy it but could only find the millionaire real estate investor.

Yep, my mistake. It's the Millionaire Real Estate Investor.

Quote from @Jay Fayz:

Quote from @Benjamin Aaker:

You need to take a look at this deal from an investor's eye. Learn how to underwrite deals by practicing. A great book to get you started is The Multifamily Real Estate Investor by Gary Keller. This book will help you learn how to underwrite.
With the little information you have given, this purchase will be underwater. Running the numbers yourself will give you the number that works. Then you will be informed enough to make a rational offer on the property.

 Do you mean "the millionaire real estate investor" by Gary Keller?

I do mean 'Millionaire' not multifamily, but wish that one existed!

I'm surprised they were able to do a 1031 under this structure.

Now that you have the property purchased in the way you did, what are you looking to fix with an LLC that owns the property? Is that worth the trouble trying to convince your partners to change it?

If you both are on the title (you/husband + friends' LLC) you'll both have to agree about whatever disposition. You need to have a heart to heart with them on your needs and plans.

You need to take a look at this deal from an investor's eye. Learn how to underwrite deals by practicing. A great book to get you started is The Multifamily Real Estate Investor by Gary Keller. This book will help you learn how to underwrite.
With the little information you have given, this purchase will be underwater. Running the numbers yourself will give you the number that works. Then you will be informed enough to make a rational offer on the property.

Home warranties are basically like insurance for the house systems and appliances. As with any insurance you need to weigh the cost of doing the repair yourself vs the cost of the premium payments. If you have the reserves to pay yourself, I recommend to not purchase the warranty.

The house's age isn't so important as the age of the systems in the house. The warranty price will go up as the units are older.

Check the contract. They might not even cover it if they know it is a rental. I don't get warranties for my rentals. 

You can add this to the lease. Just consider how you will enforce it. You might want the landlord to provide cleaning services and the tenant has to open the unit to the cleaner. Then set up a bill-back for this service.

Make sure the cleaners know what they are getting into. This sounds like it might be more than a simple weekly cleaning. 

I wish I was better at networking and did more networking. Knowing people is very important in this business.

Wise advise @James Wise. Your PM should be managing. Talk with the PM about what's not working with the marketing strategy. This is what you pay them to do. Also remember that we are getting to the slow months to lease up properties and it may take a while.

You really want to do an LLC since you are partnering. I know he is your brother, but that's a quick way for a bad Thanksgiving dinner when you disagree about something and don't have an operating agreement to help you resolve the issue. Since you'll be a partnership, FHA will be out for you. Don't cut the corner on this one to save money. It's not in the spirit of the rules and exposes you to problems downstream. Save up the 20% down and go conventional.

Definitely read The Millionaire Real Estate Investor by Gary Keller.