All Forum Posts by: Dennis Tierney

I own 2 apartments in Iowa and have not had any problem with tenant evictions when needed. As long as you stay with SFH you should do well. The problem with multifamily is the high commercial property taxes, which the governor is finally trying to get improved over democratic resistance.

I agree with the others that you need more info before proceeding. I have personally invested with a private limited partnership that does large apartments. The advantage in private over a REIT is that you maintain the tax advantage of depreciation whereas a REIT income is taxed as ordinary income. Do you homework on the investment to know what your getting into.

I have worked with 4 different management co. All have worked under contract. It protects you and them. If there would be litigation and no contract you would not be able to have any recourse to them. If they refuse a contract I would look elsewhere. If you have an experienced real estate atty. available he may be able to draw one up if they would be willing and don't have one they usually use.

George P.I find multifamily properties via relationships with several commercial brokers. All of the deals I've done have been brought to me by brokers with whom I've met and told them the parameters of the properties for which I am looking. It is not dificult to meet with a broker and they are always looking to have contacts with more buyers for property. You have to be serious about investing in multifamily though so they don't think you are wasting their time.

Chris Licavoli I don't have personal expeirence but do know a local SFR investor who does have a busines LOC just like Paul Cordero suggested. I would think you could get a LOC based on the properties that are free and clear from a local bank. I also would not lose those loans you have at a great rate.

As you are from Texas you have it 3rd party managed. What does your property management co. say as to your ability to raise rents if rehabbed? They should know their market and if they can't give you direction you may not have the right manager. As a rule of thumb I try to avoid buildings with small units as it does limit your ability to raise rents. Having said that if you can do some updating to improve the appeal to tenants it should help raise rents if you are below market in the current rents.

That one was a very interesting mixed use property that was a rehab of a registered historical school. Part was built in 1899 (not a typo) and the other in 1929. It was sitting empty after the town built a new school and the seller bought it and rehabbed in mid 90's with all new electrical, HVAC, plumbing and sewage lines. He made 34 units of varying sizes and 3 office spaces. The gym is rented out for various functions and there is a preschool that also rents space. He did a great job on the rehab. The pic on my avatar is the front of the 1899 building. We bought with personal funds and a HELOC. We made an offer this summer but the seller was unrealistic as to value so waited and he finally came down to our price when the election showed he was going to have to pay a lot more in taxes if he sold in 2013.

You'll have to check them out to find if they are mostly for SFR or multi. We have a couple in our area and the one to which I belong is mix. I find that I can learn from either type of investor. There are overlap issues for both groups.

I have used my SDIRA to but multifamily and have it 3rd party managed. I wanted to diversify the portfolio out of the stock market and I like the idea of being able to use leverage. So far it's worked for me.

An article I read today on The Street.com stated that for the vast number of mutual funds (which drive most of the movement in the market) they have no other alternative as bonds and cash are giving negative returns. Those who are individuals may shift to some diversification into real estate but for the vast majority real estate isn't even on their radar, thankfully. I've invested in the stock market for 30 yrs and still have money in the market, but, am planning my retirement income to come from real estate. I've seen too many who had their knees cut out from under them near retirement and had to put it off because they were 100% in the stock market and it dropped in half just before they were planning on retiring.