All Forum Posts by: Chinmay J.

@Kenneth Reiners - Love your enthusiasm and thanks for your service to our country. How do you plan on owning 5-10 properties by the end of the year. That seems like a lofty goal. How do you plan on financing them?

1 Vote

Agree with @Alina Trigub The more complex it is, get professional help. If its simple as owning asset, do it yourself.

0 Votes

@Joshua Feit - I see a lot of experienced flippers complain about shady wholesalers. Most of them that I have come across, I didn't agree with their ARV valuation and repair estimate. They often inflate ARV and under estimate repair. But some of the things you mention seem to be downright illegal.

You might want to set up a system where you vet some of these wholesalers, and check to see if they got any references. Remember, wholesaling is something that requires very little skin in the game. $10-20 EMD... So a lot of these folks, who are starting out and are pretty much clueless about most of the things real estate related think they can be a successful wholesaler.

I have also heard statistics from successful wholesellers that most of their deals are bought by handful of investors. So it definitely pays to be in backpocket of successful ones and develop those relationships.

Its game of numbers for sure..

3 Votes

@Rohan J. - Go to best buy and ask the nerdiest kid. Not kidding. Some of them kids are smart.

0 Votes

@Ana Beats - Look for a firm that has good training system. The commission split will not be the greatest, but make sure you get to learn all the basics. You can certainly lease your own properties. The broker I was with for 1 year was Weichert, and they got some good training. Learned a lot there.

Absolutely, nothing wrong in telling the tenants that you are the owner. I tell all my tenants that I own the joint. Its so easy to go on the county records and see who owns it. Since I self manage all my rentals, I like to be up front and not be caught in a lie. Some people think they will have hard time evicting someone, or be mean if they have to, so they call themselves managers and the owner is some mystery guy...lol. I absolutely have no issues putting my foot down and enforcing the contract if I have to.. They know the buck stops with me.. Do whatever works for your personality.

0 Votes

Originally posted by @Joe Kim:

I have a problem with paying people by percentage rather than pay per hour.

For example, nearly every single property manager charges a percentage of the rent 6% to 10% of the monthly rent for property management fees.

However, if a property rents for $2000/month vs. $1000/month - the property manager makes double! But is it double the work for the property manager? No way. In fact, it may take more work to manage a tenant/home that pays $1000/month versus a tenant that pays $2000/month.

I finally found a property manager who charges a flat fee of $75/month!! So instead of paying $200/month (10% of $2000/month), I saved $125/month.

Now, let's translate that to the lease up fee. It's the EXACT same problem.

If something rents for $1000/month vs. $3000/month - does the agent/property manager do 3X the work to get $3000 for lease up or finding a tenant who is willing to pay $3000/month versus getting paid $1000 (1 months fee) for leasing up a tenant for $1000/month?

It's the same work but the agent/property manager is make 3X the amount of money.

So here is my specific problem. I have several properties that need to be leased up and I"m calculating that it will costs me around $8000 in lease up fees!!

These are higher end properties with fairly high rents.

So here are my calculations

$8000/3 properties = $2600/per property

How long do you think a property manager spends to advertise your property, do background checks, and finally lease it up for you? 10 hours total, 20 hours, 30 hours, 40 hours?

I want to SHOUT out to BP to property managers/agents.

How many HOURS do you think you typically spend in order to find a tenant for a property?

Paperwork = hours

Advertising = hours

Showings = hours

background check = hours

miscellaneous = hours

I had the same exact problem with realtors. I thought they were overpaid for the work they do. So I went ahead and became one. Now, I don't pay anyone else unless that person is on the other side of the table (then. For the same reason I manage my own properties. Like @Amit Kal said, if you have a huge portfolio, you can dictate your own terms.

3 Votes

Originally posted by @Miguel A Calderon Jr:

Hello everyone,

I am interested in buying a cash only property using hard money, rehabbing and doing a cash out refi to hold the investment. I understand that you need an LLC to get the hard money loan which isn't a problem. The problem seems to be that its hard to do a cash out refi under an LLC so you would have to transfer it under one's name because they require the indeed to be under an individual's name. What is the best practice without running into roadblocks to accomplish the buy and hold strategy

Transferring from your LLC to yourself (individual) is not hard. A quit claim deed and a quick trip to the county office will do the trick. Once you are ready to refinance, transfer from LLC to yourself. Then get a proper 30 yr old /15 yr old mortgage and rent it out - if that's what you want to do.

0 Votes

When I read the title, my immediate reaction was... "What the hell is he talking about.. Expos moved to DC 11 yrs ago...:"..LOL

It would be kinda silly to go and pay thousands of dollars to some real estate guru when all the help you need is available right here at you fingertips, and most of it is free. That being said, I would advise you to make a very small investment and buy @J Scott's book on flipping. Its something like $29.99 or so. He is a master flipper extraordinaire.

0 Votes

Originally posted by @David Hildebrandt:

@Chinmay J. I am glad you brought this up as I am sure some people are thinking the same. The beauty of the automotive industry is they are always looking for someone will to give up there life in exchange for money. If push comes to shove I will be welcomed back with open arms. I am leaving on great terms.

However finding an alternate job with less stress (outside of being a barista) is a tough ask once you have 10+ years in the car business you are generally pigeonholed as less than.

We are financially positioned to endure quite some time of a lesser income. I feel terrible for people who feel like they 100% cant leave their job because they spend more than they make already. Lucky to not be in that position

Actually that's true in any industry. When you reach the upper echelon of earning, companies want your heart and soul. No such thing at 8-5 for those who want to be successful in life. I used to have friend who is my age but very high up in his career. The guy would always be working. Even on vacation, he would take his laptop.

I am sure if you were able to be successful in car industry, you know what it takes to succeed. At least in real estate it will be labor of love. Like the old saying goes.. "Choose a job you love, and you will never work a day in your life"... Good luck.

0 Votes

@Sean Brown - Have you looked at sites like bizbuysell.com or bizquest.com . They often have listings for businesses that are for sale.

0 Votes

All Forum Posts by: Chinmay J.

Chinmay J. has started 50 posts and replied 1178 times.

Post: New Investor in the Anne Arundel County, MD Area

Post: Do I need an attorney to set up my LLC?

Post: Why am I running into the WORST wholesalers?

Post: What is the current best camera for under $1k????

Post: About to get my RE license & investing DFW area

Post: My $8000 problem. Do agents really deserve $200+/hr

Post: Using Hard Money loan to buy and hold

Post: Looking for upcoming Expos in Los Angeles

Post: Have you walked away from 100K job? I just did

Post: General Contracting Business for Sale?