All Forum Posts by: Douglass Benson
Douglass Benson has started 2 posts and replied 149 times.
Post: smokers?
- Investor
- Mason, MI
- Posts 151
- Votes 152
Originally posted by @Kevin Harrison:
@Douglass Benson I think you missed my post just a little further down where I clarified I meant outside. Sine that comment was made in response to someone saying there entire property is non-smoking. sorry for the confusion, I in no way endorse smoking indoors and don't do it myself.
No. I got your point, I gave a bad reply. I don't want my tenants smoking outside while still on the property. It is grounds for eviction in our buildings.
Post: smokers?
- Investor
- Mason, MI
- Posts 151
- Votes 152
Originally posted by @Kevin Harrison:
I agree that smoking inside will tear up a house, but are you telling me that you would actually got through the trouble of evicting someone if one of their guests had a Cig while they were visiting their friend (your non-smoking tenant)?
Absolutely. We own apartment buildings. One smoker is one too many and one tenant who lets others smoke in their unit is one tenant that we don't need. We have to fight the precedent and work to preserve our competitive position that we are a smoke free facility.
Post: smokers?
- Investor
- Mason, MI
- Posts 151
- Votes 152
We got to a point where we decided that we had enough of the stench, the brown drainage on the walls, the burn marks on the window sills and sink tops and vinyl floors and the butts everywhere. We are now VIOLENTLY non-smoker and wish we would have done this years ago. It is in our lease that you and your guests cannot smoke in the unit, on the premises or on the property. We will evict you if you violate this.
It was one of the smartest things we have ever done to improve our buildings and our margins. You can easily make broad brush assumptions about smokers and non-smokers and most of them are true.
Post: I Would Not Be Buying U.S. Real Estate
- Investor
- Mason, MI
- Posts 151
- Votes 152
Originally posted by @Leandro Abreu:
Investor Jim Rogers said "I would not be buying U.S. Real Estate" in a podcast two days ago. He then adds "The Chinese rush to buy U.S. Real Estate is probably a sign of a top in that market."
Jim Rogers is a respected macro investor, and he's known for his long term positions. He's right more often then wrong also.
I'd like to ask other BP members what do they think about his opinion, and how can small investors protect themselves against whatever may be around the corner?
What do you think?
I disagree with Mr. Rogers and so do millions of others who are voting with their wallets. Small investors should do what they always do - make sure the numbers add up and pull the trigger. If any of us hesitate on a deal because of one man's podcast, well, we aren't living up to expectations.
Post: Has Detroit multi-family begun making a comeback yet?
- Investor
- Mason, MI
- Posts 151
- Votes 152
That tells me all I need to know... :)
Post: Post a Free Rental Listing For 40 Unit Apartment Complex?
- Investor
- Mason, MI
- Posts 151
- Votes 152
I use Rentlinx. It populates a ton of renter websites with my ad and is free. That being said, I am beginning to get all kinds of calls from Trulia and I have not done anything to make that happen.
Post: Is it wise to use a HELOC to fund a down payment?
- Investor
- Mason, MI
- Posts 151
- Votes 152
When is leverage EVER not a good thing!?! We bought our first two apartments (one a four unit and the other a 16 unit) using HELOC dollars. Based on the returns I would do it again in a Michigan Minute!
Post: Court declares mandatory rental inspections unconstitutional
- Investor
- Mason, MI
- Posts 151
- Votes 152
Precedent is a powerful thing.
Post: Is the Time to Buy an Apartment Passed?
- Investor
- Mason, MI
- Posts 151
- Votes 152
We purchased buildings in 2003, 2005, 2009, 2011 and 2015. The only thing that keeps me from buying apartment buildings is finding the right deal. That is true regardless of circumstance or economics. If you take a macro view of everything, you can convince yourself of anything. Do what makes the most sense, makes sure the numbers work and pull the trigger.
Post: How to Bust into Multifamily Apartment buildings?
- Investor
- Mason, MI
- Posts 151
- Votes 152
Originally posted by @Matt Heath:
Hello Everyone,
I currently own one four unit apartment that I purchased for $193,500 and rents for $2300/month. When I bought the proerty it appraised at $217,500. I paid only $3,500 down for the property using an FHA loan. My interest rate is 3.5% with a 30 year fixed loan. I do not plan on selling this since it is such a low rate. I have increased the value of the property by raising the rents. ( when I first bought it rents were $2,085/month). I have the goal to bust into large apartment complexes 5+. I am 25 years old and have 19k in the bank not including 10k in reserves for the property. What are some strategies you use to get into this space? Do I keep buying smaller multi family properties like duplexes and eventually sell to 1031 exchange into higher units? Do you refinance and pull out money? Try to find sellers to do owner financing? What would you do in my situation? How long did it take you to get where you are?
Thank you for your time and responses!
Mark, we are slow investors. We went from 0 to 81 units in a little over 10 years. That being said, all our buildings are solid, are appreciating in value and cash flow...in Michigan!
Do all of the above. There is no single way to purchase, no single way to grow. We purchased six separate deals and no two of them were the same, but they all built on each other. We were told about the first one, cold called on the second, were contacted by a frustrated landlord for the third, responded to an MLS listing on the fourth, received a call from a friend who was contacted by a broker on the fifth and had the same broker give me a pocket listing on the sixth.
Put it out to the universe that this is what you do (apartment investing) and deals will start to hit your radar.