All Forum Posts by: Gabriel Amedee

Hey Luiny Tavares In short I believe it all comes down to knowing what the market is in the area you plan to invest in as much as possible. Sadly I'm not knowledgeable of that market but can mention a way I've used to figure this out in my market. I would suggest finding a realtor you know to run rental comps in the area and filter through the properties purchased with financing in the past couple of years. Knowing the typical rates in the time they purchased could give you an idea of their terms and help you calculate what their COC is. Hope this added some assistance. Happy investing!

Why not make more money? I wouldn't trust someone with my money if they have ZERO track record and apparently zero funds as well. Sounds like a major liability and more of crap shoot. How many people fall into your same parameters? There's tons of people waiting on the sidelines for a hand out. Nothing shouts "pick me" when investors look at you. To me the answer to this is simple. Make more money. I graduate next semester but that hasn't stopped me from being a full time realtor and assigning contracts along the way. Now I can go to events and meet ups and speak so confidently about what I do that opportunities end up falling on my lap. Not saying it's easy but it is really simple. Get yourself a commission based job. Be exceptional at that job. Get paid exceptionally cause you're exceptional at that job. Use that money for REI. Partner with people you've met along the way. If you're good at your job they'll be calling you asking what they can do to work with you. Hope this provides some insight. Not much of a sugar coater but you're more than welcome to reach out for more help. Regardless happy investing!

Hiring a property takes margin and you may have a hard time finding a property that comfortably cash flows after 10% of the gross rent is stripped. In addition with all this talk of downturns, the likelihood of your one and only tenant in the single family eventually moving out is high so you can be pretty sure you'll go one month at the minimum paying a mortgage out of pocket. When owning a MFH it's a lot less likely you'll have to ever pay the whole mortgage as the likelihood of all 2-4 tenants not paying is not as high. We can also assume that the margins on a 2-4 unit will be much higher thus making it more feasible to hire a PM. In my area PM's are also willing to lower their fee when giving them multiple units at once.

Is there a reason you guys are considering exiting in 4yrs? If there is a downturn, like many are predicting, then this wouldn't be a sound decision. I don't know you or your friends long term goals and I don't know that area at all but I would consider looking into taking out an FHA loan on a MFH. You can offset the higher cost with less percent down and solidify it as a cash flowing asset when either of you would like to move on to a different property. The most important part of this thread to me is that you consider getting an attorney to draft out a well thought or agreement in case this relationship with your friend ever goes sour, like many do. If I can be of any more assistance feel free to reach out. Happy investing

No one?

Make the contract assignable?

You place the offer so you write out the contract. If the realtor does not accept the contract (like most smart realtors would do) then the only other option I can think of is attempting a double close. You would need to find a title company who understands what is going on and may also need transactional funding (which will cost you a bit). 

Is your buyer purchasing full in cash? If not you have to keep in mind that most banks will not finance an assignment fee into a buyer's loan.

I believe you are touching really sticky grounds and would highly suggest to steer away from represented sellers unless you really know what you are doing.

I'm having a hard time understanding what your question is. I have a couple comments though. 

I do not know in your area how feasible it is to cash flow $1,200 on one rented unit while still paying a note for two units but for my area that is not very realistic. Why not run some numbers on properties in your area and see how the cash flows plays out in both worst and best case scenario. 

You also mentioned putting the property in an LLC but to my understanding you cannot take out an FHA loan using an LLC, the property must be a personal residence and under the name of the owner occupant.

Most of your questions seem to relate to if the numbers would make sense. In my opinion I think you need to start running the numbers yourself and see if it makes sense to YOU. 

Definitely should. I would call every sign and every ad on Craigslist asking to be put on their mailing list. Highly suggest making a separate email just for this because you will get spammed like no tomorrow. Most of the good deals will be gone by the time they send their email but I would use it as a way to practice analyzing deals. Use your days off as deal analyzing days and you will soon see which wholesaler is getting good deals and which ones are just selling dreams. Reach out to the 1 or 2 that you felt had good deals and specifically ask them to call you the minute they come across a deal that contains x, y, z and that you are able to close in x amount of days. A wholesaler hears this and would much rather call one or two people rather than spend time marketing online to a bunch of people who are going to just send around the same properties several times. Then he/she will need to have a bunch of people walk through the property and a couple people attempt to reach out to the owner directly and all this extra work for the same outcome. This is why I do not send out email blasts and just call my investors directly. Hope this provides some assistance. Just my take on topic. Happy investing!

I would reach out just out of curiosity. See what he has to offer and perhaps see if he is credible enough to bring value to your network. He's taken some initiative clearly if he's putting out signs which means he's doing more than most new investors. Its just a 3 minute conversation that could turn into a relationship and if not then you wasted 3 minutes of your time. Big whoop. I would ask him how long has he been investing. What type of RE investments does he engage in. If he's licensed and if so under what broker. What is his past experience. Why does he want a trainee over a VA, ISA, Agent, Laborman etc. Does he have another source of income besides real estate? Does he have multiple LLC's? Hope this helps!

@Duriel Taylor every month @Jonathan Azoulai hosts a BP event that is far more informational than most of the RE networking events that I have gone to. I should be attending the next one and you're more than welcome to join and pick the brains of me and all the other investors there.

@Jay Hinrichs I had a hunch so. Thank you again, I'll be sure to write this down as a short term goal.