All Forum Posts by: Brandon Ingegneri

@John Akolt, I like your play, but it won't work for this particular buyer.  He doesn't want me holding any not what so ever. 

@Sam Shueh, I understand what you are saying, but no-one ever buys right at the bottom and sells at the absolute peak of the top.  A 100k hit on this property is worth selling now.  By the time it would take me to get another 10 or even 20k, I would have used the profits to do 10 more deals.  Milking every drop out of every deal isn't my style.  Id rather leave a little on the table because I make it up in volume.  Recycle that money over and over again. 

@David Zheng, I am not sure if you are referring to the tenant or the contract buyer putting down 50k.  If it is the contract buyer, I think that is a bit unrealistic to have a financed, non investor buyer put 50k down on a 200k property.  That is just me though.  

There is not going to be any lag time between vacancy and transfer of title.  Worst case, if the buyers ultimately fall through at the 11th hour, I won't have any problem what so ever filling the units.  The potential vacancy is not really a concern of mine at this point. 

As long as you are hiring a licensed contractor to do the work you are all set.  Whether you are an investor or not, you are the homeowner in that situation.  Any homeowner can hire a contractor to do work whether they are keeping the property or selling it.  The person who is pulling the permits and doing the work must be the licensed contractor. 

The only issue with something like that is that there is more than one way for someone to knock out a job when quoting it.  There are a lot of little details that many people never take into consideration when vetting someone.  Sometimes a quote from one contractor may be a bit higher, but it takes into account items that require foresight.  Many contractors will bid a job low, and then include extras.  Just keep this in mind.  You want someone who will give you a comprehensive quote. 

Originally posted by @Joe Splitrock:

Originally posted by @James Wise:

Originally posted by @Michael Knaus:

@James Wise you as cold as ice!

Ok, joke but...I see your perspective. I just feel that helping the old guy find a place and maybe even help with the moving expenses is the right thing to do. He was there for 15 years and has to move through no fault of his own. 83 as opposed to 43 makes moving a little more challenging I would think, so yeah his age does matter, at least to me. He may have made poor choices but I am not going to cast stones. 

Now that being said.....I would personally NEVER sell at a loss for the reasons mentioned. I would sell to the highest and best offer....even if he were 103, he would have to pony up and match or beat the offer.  I suppose a token offering to help is my way to sleep better at night.

Agree. I'm incredibly cold when looking at this business. Your points are valid but I try to operate in this space without letting feelings cloud my judgement. There is of course nothing wrong with helping others & I am glad that you are a caring person. That is admirable. 

I like to help others but don't mix that with this business. Real Estate & Rental Property Investing/ Property Management is a BRUTAL business. In my opinion the landlords that work off of their feelings get eaten alive.

Daymond John (SharkTank, FUBU creator) said "you have to make it before you matter." 

To me the idea that you need to focus on building a profitable business & you will end up being in a position to make a much bigger difference then you could have had you not ended up in a position of power makes a lot of sense.

I do disagree with the idea that he was being forced to move through no fault of his own. It is his fault. He chose not to buy a home. That is a risk you take on when deciding that you want to rent someone else's home as opposed to buying your own.

It is incorrect that you have to be cold to operate a business successfully. That opinion may justify your own actions, but many of us don't share your values and succeed in business. In fact, successful businesses use positive company culture and values to attract employees and customers. It is a competitive advantage. When you treat people better, you inspire loyalty. When you help people and the community, your business does better.

Age is irrelevant for me in this situation. Throwing a good 15 year tenant out of a property, so you can make a quick buck is just bad business. The OP said himself the property was performing and he doesn't need to sell it. He only put it on the MLS to see if he could make a quick profit. This is short term thinking. It is also just bad business to throw out two paying tenants prior to closing on the sale. If the buyer wants to do that, they can do it themselves. Closings fall through all the time. Why would I want to take the risk of being stuck with an empty property? Worse yet, why do I want to get the reputation as a landlord that throws good tenants out of properties?

I agree that money affords you the opportunity to help people. The problem is if you don't help people on your way to the top, it is pretty unlikely you will help them when you get there.

While I agree with your first paragraph and understand what you mean in the second, I do have to contest that I am being short sighted making a quick buck on this particular property.  I own and operate a pretty extensive portfolio that holds very little debt.  With over $100k profit in this deal, it fits perfectly into my long term goals.  

Case in point with regard to this property:  I am trading up.  I will take 100k and put it directly into another building that I have under contract with more units that better fits my portfolio.  I will literally be purchasing this other building for several thousand dollars after it is all said and done.  My contract price is 100k on it, so after the attorney's fees, and insurance, I have a performing asset that brings in twice the cash flow before even doing any value add.  I will be deferring my gains on the duplex by utilizing a 1031.  Nothing short sighted about the play.  

Additionally, I do in fact agree with you about delivering the property vacant.  Is it a risk? Yes, but it is a calculated one, and we are working with the buyers currently to coordinate a very short vacancy time.    

Sam Magina I didn’t increase the rents for several reasons. I just closed on this property and listed it on the MLS. I do not want a tenant turnover while it is listed, and the property cash flows nicely as is. These are temporary rents during the sale. We went under contract with a buyer yesterday for slightly below asking, so it is progressing nicely.

James Wise people just made assumptions. He wasn’t propped up as a poor man.

If you own something directly in a major metro, and it is not too much of a financial pinch to prevent you from steadily adding to the portfolio in a less expensive area, keep it.  Maybe you won't be able to scale as quickly by keeping it, but its one of those things that you may not ever be able to get again.  Hang on if you can, steadily expand elsewhere.  When its time for the very big pay day down the road, you'll be glad that you waited to pull the trigger. 

@Robbie Reutzel is correct.  The assessor sites generally have information.  Some municipalities may not regularly update their information, so sometimes it is advantageous to call and ask where the tax bill is mailed.