All Forum Posts by: Donald S.

So I finally got to listen to the episode and while it was good, and Rich seems like a great guy, I had issues with it. it's great that he's living inside his means, but people shouldn't thunk he's look going off like some pittance of a paycheck. he said his retirement pay will be 3500/mo after taxes, which means he's at least on O-4 making 7880/mo Currently before housing and food allowances. So yeah a 94k/yr job ain't bad. Yes he did a good job gathering money and buying at the right times, but just so everyone is clear, he's not a monk making nothing.

@Jason McGraw, when you were speaking with the banks this week, were you talking to their commercial loan officers or just their normal residential guys? It's not uncommon for smaller banks to have only 1 guy that does/deals with commercial loans on the front end, so make sure you're speaking with the right people. 

Also I'd suggest first asking a bunch of banks commercial guys "what kind of loans do you guys like to give? Or what kind of loans is your bank looking to lend on?" If they're not really interested in smaller Multi's then it's unlikely they'll give you great terms. However if you can find a bank that like to lend on smaller (5-50 unit buildings) multi's then you should have no problem working a deal with the numbers you have. Once you've ID'd 2 or 3 banks that like lending on the type of property you have, tell them, "Hey I am looking for a loan structure like this......" and lay out what you'd like to get and see what they can do. If you're a good enough negotiator you can play them against each other, "you know bank X said they'd do Y, could you match that or help me out?"

Good luck!

Cheers!

I mean, don't get me wrong, we're not "rolling in it", but unless you have 4+ kids and a wife who doesn't work, you should have no problem saving money and living a nice life. And yes @Adrie Moses-bailey I miss my deployment money, best way to save money lol. 

I can't wait to listen, but if he says in the interview that "military guys don't make a lot of money" I'll be disappointed. When I was in I made 2x as much as I do now and had 1/2 the expenses. Hopefully he highlights just how much the military gives you to allow you to save and invest. 

WOW! That's amazing @Account Closed, just simply amazing. I'm dumbfounded and jealous. 3.75% is basically a gift. Good luck running this property, I can't wait to build up 100k (let along 400k) to put into a nice commercial deal. 

My first property is in a up and coming area, it's on the verge of nice/bad. I'd like to attract the best tenants possible, but don't know where the fair housing act starts to be an issue. Is it against the fair housing act to advertise a "first responder special"? Or police, firefighter, military, discount? could I post something like "Ask about our specials" and then offer discounts to police etc...?

@Brandon Turner I want to thank you, even though I'm 90% certain you don't actually exist....

Anyway. I found BP in Mid-November and signed up for pro November ~26th I think (like 3 days after the price jumped, but w/e what's a guy to do?). November 28th I believe it was I watched Brandon's Turner's 90 day challenge webinar via the Pro-replay, which is a great feature by the way, and decided even though I probably couldn't close a deal before the end of the year as was suggested in the webinar, I could still give myself 90 days. 

Off to the races...but smartly. I won't go into depth, for that check out my new blog, I'll be updating my journey there:

https://www.biggerpockets.com/blogs/10679/71273-th...

But suffice to say, I closed my first property February 22nd (87 days from onset)! And so far everything is looking like a success. Thought I'd share some quick numbers here and I'll come back and update this thread as we hit major milestones..."we", who's we you ask? Why my partner! Because like Brandon says 50% of a great deal is worth more than 100% of no deal. So here's the breakdown:

3 unit property

Purchase Price: 139,900

Down Payment: 34,975

Closing cost (net):  2,785

All in cost: 37,760, 50% me and 50% my partner

Gross rents currently: 2300/mo

Gross rents projected April 1st: 2485/mo

Insurance: 78/mo

Utilities: 164/mo (standard in area on MFH for landlord to pay Water/sewer/trash)

PM: 10% (paying ourselves, but included in expense costs)

Repairs: 7%

Capex: 8%

Vacancy: 9% (area average is actually 5.4%, but we want to be conservative and do at least 1 month)

Expected repairs: 5,000

ARV: 165,000

FCF: $747/mo (not including PM fees paid to ourselves)

COC ROI: 20.94% (also not including PM fees paid to ourselves)

And to make it even better, the 5k we expected to spend to rehab one unit won't be nearly that much because after we tore into it, it wasn't as damaged as we thought! 

So once again, thank you to Brandon for the challenge, to BP for the support, to my awesome partner in the deal @Naveen C Reddy of course, and to @Joshua Dorkin for starting the site and podcast that helped get me here. I know Josh doesn't get as much love as Brandon on the podcast so wanted to give him a shout out. 

Cheers!

@Nina B. there's no laws requiring co-signers for leases, however I wouldn't balk at the idea. If something happens then the parents are liable as well, it's added protection to the landlord. That is assuming the parents have credit worth risking, if it's already trash then that doesn't matter. 

I'm sure you've checked it out already, but make sure you've got any licensing required. Missouri requires a property manager be a full blown broker, which means 2 years as an agent first before you can take the brokers exam. I found that out last week when I went to start setting my pm company up. 

hi everyone, I need to know if I should bother with background checks and security deposits fur a garage rental? it's going to be rented to a non tenant, used for storage. I know I'd always run backgrounds fit tenants of our units, but since this isn't a domicile, I'm not sure about for a garage. if it matters this is in St. Louis Missouri.