All Forum Posts by: Calvin Lipscomb

Reading through the comments here, the two things you have to consider is the de facto PM function this guy performs, and the condition of the apartment. Some years back, I compensated the neighbor around $100.00/month, and that didn't include snow cleaning which I had a tenant do. The neighbor picks up garbage off the sidewalks, sweep it daily, pull garbage pails in, change bulbs in the common areas, and advise me if snow cleaning is performed.

Given he's been there for 40 years, the condition of his apartment if you don't plan on upgrading is another $50 to $100. Subtract this from $700, and you're at $550.00

So just to give the message that rents would increase, I would do it in $25 dollar increments, and get to $550 in two to three years. If I were in your shoes, I'll be glad someone retired is doing this. I got a ticket for garbage on the sidewalk once, and my neighbor manager called me right away when it happened. He told me he could go with me to court to fight it because the garbage actually fell off the garbage truck when they collected garbage, and the garbage collector noticed it but was too lazy to pick it up. He was going to get to it, but the inspector got there 10 minutes later, before he could, and called me right away. Now I noticed garbage inspectors follow garbage trucks here in NYC, so what he tells me has a ring of truth. Now he sits by the front window most days watching, and where else would I find someone watching the place 24 hours, and tell me how a piece of garbage got on the sidewalk, and I'm informed in 15 minutes. He wanted to know if the ticket the inspector left should be mailed to me, or if he should hold it for me. Then his son tackled someone trying to break in the back of the rental late at night once.  I just can't find anyone doing this for the price, and neither can you. Compare this to absentee landlords that has no idea what's going on.

looking for feedback if any of you tried out the protege program

Hi BiggerPockets community,

I have spent some time and been successful in the residential market (flipping homes) and wanting to diversify my real estate investment portfolio by venturing into rental apartments.  I know that the world of residential and commercial are two completely different animals so making the transition is really scary and intimidating.  I started doing some research and happened across Peter's website and founding myself watching all of his video's on youtube - which I have really liked and liked the idea of his mentor-ship (ie: protege) program.  I think he does a great job explaining and keeps it interesting.  After doing some further research on BP and Google, I have come across some forums that talk about Peter with mixed reviews (for the most part positive) but I have not seen any that talk about actually signing up with his protege program.  Does anyone have any thoughts about the protege program?  Is it worth the investment?

Like I say, I am a newbie to commercial any feedback, advise or direction you could provide would be great,

Thank,

So what would you do?

I purchased a value-add, 4 unit in Columbus Ohio last year. The building was completely occupied with rents way below market. A few months after buying the property we submetered all the utilities charging them back to the tenants. My thoughts were to do light rehab and raise the rents as people moved out which is what I have done so far, however..... I have a tenant that has lived in the building 40 years !!! Market rents are 700 per month and the tenant is paying 485. The tenant pays a week early every month, picks up trash around the building, shovels the snow in the winter and never has any maintenance request. Obviously, I don't want the tenant to move, but their rent is really low.  Do I try to gradually get him to $700 a month with a 3-5% increase each year? This could take 10+ years. Or do I hit them with maybe a $50 increase each year? I have already increased the tenants cost 50-70 per month by charging back the utilities.

Thoughts????

Thanks!!

Adam

@Stephen Kunen This deal is listed on the MLS. I got a showing right away and realized with the occupancy at 35% and deferred maintenance there is noway I could get bank or agency financing. I brought up owner financing till the property is 90-100% occupied and owner agreed. I am still my 35 day DD so Im currently getting construction quotes. Not all units need rehab but some need updating. The 250-300k Was my ballpark estimate being conservative. I should be getting construction quotes back this week.

Calvin:

Is the Vendor's agent a residential real estate agent by chance?  This is an unfortunate, frequent occurrence when a residential agent, whose experience is selling pretty house to Dick and Jane, catches a {small} commercial property.   

Great info @Drew Castleberry. We're looking at options that can help us advance our flipping and our rental strategies. Currently, we're using the bank LOC and cash for the flips and our own cash and refi cash out for the rentals. I talked briefly with LendingHome today and they offer cash for purchase & rehab, with option to convert into permanent financing if we decide to hold as rental. It seems like a good fit, so that's why I'm looking for people who've had experience with them to see if they can deliver. We're open to speaking with other lenders who can also offer opportunities for us to execute our strategy.

I am thinking about using Lendinghome for my first flip. Has anyone used them and please tell me your experience with them. Based on my discussion with one of their officers, their process seems stress free but i wanna be sure still. Thank you.

I just spoke with them as well.  Had a good conversation and was able to answer all my questions but it could always just be the pitch.  It's hard to get the fine print disclosed up front until the issue arises.  I will keep calling around to compare but they are on my list.

There are other past reviews of them if you search in the toolbar but I am also interested on hearing any recent news.