All Forum Posts by: David Hildebrandt

Just keep it simple. Say the home is worth $125k after repair:

$70k Cash

$20k Cash + 100 Payments of $600

$10k Cash + 100 Payments of $750

Don't include interest, if they ask, say "Call it interest if you like, in example three you are getting $15,000 more than the cash offer."

Clearly, adjust the terms and amounts to fit the scenario, and take into effect the repairs needed.

Been to Pitt several times, but I can't provide much insight. However if you are looking for rentals, you will be very interested in what kind of rent one of your units might bring in. Check out rentometer.com for a quick temperature of the rental market in the area of your choice.

My goals is for one months gross rent to equal 2% of the purchase price for the property. Not the easiest thing to find, but depending on how utilities are paid etc. some folks have success with deals that are as little as 1%.

Meh, you will use them sparingly to start with. Not sure if you are investing in Atlanta, but I imagine that to be a competitive market if so. The three people you mentioned are all not necessary until you find a deal, and even then the role the will play is minor (depending on the size of your first deal.)

They just need to be licensed in whatever state your business is located.

As far as expenses for each 

Insurance Agent - $0 (paid from your premiums) check out nreig.com 

CPA - I assume you mean a tax attorney, which is different from say a bookkeeper who would monitor the transactions on your account and log them accordingly. $Varies based on the services provided

Lawyer - Might charge you hourly for work that goes "off script" but will often have set fees for services like evictions, contract, partnership formation, LLC filings etc.

Help us help you. Where are you at in the process? Have you identified a deal? Trying to work up syndication fee schedule, equity splits and return rates?

Maybe most important, why syndication?

What has worked best for me is to leave the excess in the account, take a spread sheet and divide it up into columns. So one for cap ex, one for maintenance, one for vacancy. Divide your excess up among those three columns as a positive entry with a date next to it in an adjacent column. Then any time you spend from a column you enter that as a negative.

For clarity sake I also found that this go to be a lot of extra work as you are essentially creating a budget and then tracking your spending relative to that budget. You are performing a lot of accounting for one rental property. What I do now is just track my spending as normal. I spent about 4 months building a buffer of $10k on my 10 unit deal, mostly for taxes, but also for incidentals. If i get to the point I need to replenish because I dipped below that level, I stop taking a monthly check and refill the buffer.

I use this spreadsheet to account, it came from BP library but I corrected a lot of the formulas and look up tables and added several lines for income. Inbox me if you would like to check it out.

@Travis Rasmussen a lot of folks on BP use REI Guard, although I think they go by a slightly different name now. Located in St. Louis, wrote a policy on my 8 unit with Lloyds of London when no one else would seem to touch it.

nreig.com

I am seeking a partner to flip with in the Cincinnati Ohio market. I recently completed my first flip, under contract and scheduled to close June 18th. Left my full time gig about six months ago to pursue real estate for all the hours of the day. Has been a challenge to find young, similarly minded investors. All the gray beards at the REIA are vast wells of knowledge, but its not the same, looking for someone to learn and grow with in this business, someone with energy who is excited to see what real estate may bring.

I am able to manage projects full time and have about $100k to put to work. I live on the Westside of town, but have grown up in Cincy so I know the market well.

Who do you know?

Thanks @Paul Sian for the extremely rapid reply!

Recently acquired an 8 unit multifamily in Reading, Ohio (which is actually surrounded by the city of Cincinnati.) The building has a 9th unit in the basement that has not been rented for some time, but has a full bath and a half bath, one bedroom that does have grade level windows (not egress) and all the necessary plumbing and electrical to be turned into a rentable unit...and its approx. 1000 sq. ft. Would be a waste not to rent it, not to mention, even $500/month in rent would be a huge boost to NOI.

I called the City of Reading building department. They encouraged me to work with an architect to better understand what is needed to bring the unit up to code. 

What architect would you recommend?

I HAVE ZERO IDEA WHAT 400K BUYS IN CALIFORNIA!!!! I imagine not much. But speaking in generalities, flipping will be the quickest way to multiply your cash, which I then personally would take to a value add multifamily deal. Which you could hopefully cash out refi at 75% LTV in maybe that same two year period it would take to save up and buy one. Take that money to a flip or two to multiply it and then start the process all over. EXTREMELY OVER SIMPLIFIED.

Just to be clear that is rapid progress for someone in your shoes. Hell that is rapid progress for me or anyone. But I agree that identifying your strategy is key.