All Forum Posts by: Dennis Tierney

So I'm not sure how this is going to turn out but we have a property under contract to close at the end of the month that is a 10 unit and an 8 unit a block from each other in a small town (3,400) and the seller was so motivated he didn't charge us for a 1,000 sq ft. house that is on the 8 unit property. The good news is that it has a roof, siding and furnace that are in good shape. The bad news is it'll need new flooring, kitchen and bathroom as well as doors and windows. The current tenant is being evicted by the seller so we will take over with it empty. This is new territory for me as I've only done multifamily till now and never done a house rehab. The management company is going to estimate the rehab cost so don't know yet if it'll be worth it to keep and rent or try to flip.

@Christine PrelazI don't mean to be rude, but, you really should have done some homework/learning before even looking for multifamily property and not waited till the day of taking the tour. Having said that you need a minimum of three years of actual financials (not a proforma) and the actual current rent roll to start. You need to look at each unit and it's mechanical systems as best as you can and if you do get it under contract be sure to have a good inspection done. Good luck.

@Michael CampbellI don't know of any way to look it up, but, if anyone would have that type of info it would be an experienced commercial broker who has been around for years

@Sean T.Look at the IREM web site and look for CCIM certified managers, talk to other real estate owners in your area that use property managers and when you interview them always get references and talk to them.

@Gretchen Roberts 

I get brain dmage trying to do all of these long term calculations and agree with others it detracts from the real issue which is does the investment perform in the present? Many authors state correctly that you make your money on the buy. If you are interested in appreciation then look for properties for which you can force appreciation through value added improvements, then you don't have to worry about market forces to get your appreciation.

Erik: For apartments I usually rely on the IREM quarterly survey for apartments. You should be able to get the report from any commercial broker or reputable property management company. The IREM gives a lot of useful info in those surveys.

@JScott: I distinguish because language is a universal human trait whereas criminality or ability to pay are not.

@JScott: I have treated more than a few that were brought to the office or hospital from jail, in manacles accompanied by a deputy. All docs treat some people for whom they write off part or all of their care. Does that mean all landlords should be held to the same standard? Of course not.

As @Marcia Maynard could attest, in the medical world we use interpreters/translators very frequently and are required to use a qualified interpreter rather than family member for medical/legal reasons. We have a good sized population of refugees from Somalia and Sudan here and they almost always are apartment dwellers when they first come here, as are most immigrants. There are interpreters for almost all languages available from various sources. In the medical world it is unethical to turn someone down for care based on language and I don't know of any doc to whom that thought would even occur. The housing rental business is also a service industry so sometimes you may have to jump through some hoops to service your customer. That's just good business.

@Mark NeigerThe way I've set up my syndicates is to form a property specific LLC with me (in this case you) as the manager of the LLC and each investor buys shares in the LLC which then purchases the property. As the syndicator I put skin in the game but also get some shares for the work done in getting the deal together. I don't give a preferred return as the investors share in the returns depending on the percentage of the shares of the LLC they purchased. I distribute the cash flow quarterly along with a letter discussing the operations. I buy and hold apartments and the investors are also of the mindset of getting tax advantaged passive income so there is no expectation of a sale and capital gains. It's important that you be sure everyone understands the reason for the investment so they are all on the page as you in the investment. Good luck.