All Forum Posts by: David Cruice

Originally posted by @Alfonso Aguilar:

@David Cruice, looking at some multi family units in New Mexico, do you have a few tips to pass on to a new investor Possibly some Unknown’s that may come up or what are the most critical things to look for, what % does the city ratings/crime statistics have with determining the value of the investment?

 Hi Alfonso.  Looking at your profile, I'm assuming you live in CA and are looking to do some long-distance investing in NM.  Makes sense given prices in CA.  The first to things I would recommend you do is purchase a copy of @David Greene's excellent book, "Long Distance Real Estate Investing".  https://www.biggerpockets.com/store/long-distance-real-estate-investing-ultimate.  Second, I would watch this podcast "From Zero to 200+ Deals in Five Years with @Sharad Menta".  https://www.youtube.com/watch?v=t9_miYO89ro.  Sharad has some particularly good tips on identifying what neighborhoods you would want to invest in and checking in with the local police department duty sergeant with respect to crime statistics and desirability of areas.  Finally, if you haven't done so already, and I know this might sound like I'm stating the obvious, but once you've identified a couple of areas in NM that you want to invest in, go visit those areas at least once or twice.  Meet realtors, property managers, etc in the areas and get a feel for the types of properties you want to acquire.  Finally, once you're ready to make a purchase, make sure you conduct a very thorough due diligence of any numbers given to you by prospective buyers and their agents.  Buyers tend to overstate the condition of the property and understate their expenses.  Realtors tend to overstate the income potential of the property.  Basically, they're both trying to sell the property based on how it can perform in the best case scenario; not how it is actually performing.  And don't full in love with a deal.  It's all about the number; not how you see yourself running the property in your head.  Best of luck and let me know if you have any other questions.  

@Calvin Lipscomb, K.  Thx.  Then @Kendall S Jones is spot on.  Are you also planning on replace the front door locks to each unit?  Best of luck with your new investment.  

Buy yourself a copy of @David Greene's excellent book, "Long Distance Real Estate Investing".  https://www.biggerpockets.com/store/long-distance-real-estate-investing-ultimate

@Account Closed you might want to do yourself and everyone a favor and delete your post because it's going somewhere that isn't going to benefit anyone. Personally, I'm neither amused or offended by your post.   Just a suggestion.  All the best and continued successful with your investments.

Congratulations, @Nurzhan Abenov!  Onward and upward to the next deal!

Is there a mortgage on the property? If so, DO NOT loan your neighbor any money with him using the house as collateral. You'll be wiped out by the first mortgage holder should they foreclose. If he does not have a mortgage on the property he could list the property for sale or take out a HELOC and pay the back taxes.

When you say "locks to the entrance door", which lock(s) are you referring to?  Are you referring to a entrance door/gate to the property or the front door lock to each unit?  

@Joshua Elizondo look at it from the tenants' perspective: Yes, they're not going to be happy their cushy little number is coming to an end. They might even be so annoyed that they tell you they're going to move out. Well, if you are increasing your rent to market, then what do you think thyre going to discover when they start looking for a new place? "Oh, look, it seems that everyone is charging $1,400/month"! Maybe this place isn't so bad after all"! Nobody wants to move all their cr ap to somewhere else and still pay the same rent. Worst case scenario is that you increase your annual income by $4,800. If you aren't willing to make the hard decisions now at the beginning of your real estate investment and career, then you're sure going be leaving a hell of a lot of money on the table during that time!

@Virginia Reasor, excellent! Sounds like you're on to a winner. Best of luck to you.

@Keyoka Smith , purchase a copy of this book.  It will help improve your understanding of how to not only purchase properties at tax lien/deed sales but how to get them ready for sale and maximize your profits.  DM me if you have any questions.  Thx.  https://www.amazon.com/Profit-Investing-Real-Estate-Liens/dp/1427795959/ref=pd_lpo_sbs_14_t_0?_encoding=UTF8&psc=1&refRID=5EVWADXW52F1GSES4YV6