All Forum Posts by: Eric Martel

I invest in Cleveland. My focus is on cash flowing rental properties. I am able to find residential deals consistently but I haven't found a multifamily deal that made sense. Actually, I found 1 deal but the seller started playing games so I backed out. For multifamily I invest in Memphis.

You can look at MartelTurnkey.com We operate in Cleveland, Memphis, St Louis, Birmingham.

Hi @Maggie Shadburn, Are you trying to sell it? Are you wondering if it is a good investment? What is the expected rent?

I calculate the return on equity of alternative investments and pick the investment with the highest return. If 700/mo is your net cashflow after opex, financing, etc. then the return on your 200k in equity is about 4%. can you reposition that 200K to achieve a higher return? It could include maxing out on the mortgage in FL and use the proceeds for an alternative investment, getting a HELOC, or selling.

Hi Houston, Is the date of the event correct 12/13/19?

There are a few things weird with the deal.

1) see @Logan Kirchhoff post earlier. What this a recent appraisal?

2) You can buy the property with no money down and the credit union is willing to give you 80% LTV. Did you confirm with the credit union how they will calculate the "V"? I would be astonished if it meant the ARV or an appraisal value. Normally the new purchase will define that value. More than likely you may get 80% of the purchase and they will provide 100% of the repair.

You may want to consider "subject to" and get a smaller of 20k to do the repairs and resell.

Not sure what you mean by being the manager. Do you mean property manager or just GM? If you are looking for a percentage for doing Property Management such as finding tenants, repair and maintenance calls, and handling tenant issues then the going rate is more 8-10% of gross rent not 1%. If you are talking about management as a GP/Sponsor then I always look at my return and my investor's return to make sure it is attractive for both sides.

First you should get consideration as part for putting the deal together (Acquisition Fee): finding the deal, making offer, EMD, creating the structure of the LLC/LP, finding financing, finding property management, ... If you are getting financing and you are the guarantor on the loan then you deserve some additional consideration.

Then determine the value of General management such as: paying certain bills, communication with property manager, accounting, working with CPA on tax reporting.

Then calculate the final returns for yourself and your investors. The returns were never high enough for us to split cashflow on residential properties.

Fortune Builder is legitimate business but the package is way overpriced for what they offer.  All the information you need is contained in the book they give you when you take the weekend workshop for $200.  You can figure the rest here on bigger pockets or there are tons of books on Amazon you can get as well.

Congratulations!  

As many people pointed out you need to find the right market.

@Mark M.  We also live in the SF Bay Area and the market is way to competitive to be able to get decent returns.  That is why  we are now investing out of state.  We researched over 50 cities in the US before deciding on 4 markets to invest in.  We looked at multiple metrics from BLS to determine where we might get some opportunities that would meet our investment criteria.

We are in the process of acquiring our first 8 unit multi-family property. The purchase is made conditional on financing, due diligence, etc. The seller wants a proof of fund for the full amount which doesn't make sense to me. Where can I get a POF letter/pre-approval on short notice?