All Forum Posts by: Gino Barbaro

@Imani Naomi

I started with a tri flex, and had no idea how to buy larger properties. I did not have your advantage of working in the industry.

You need to begin where you feel most comfortable, and where you think you can close a deal. Obviously, multifamily has so many more advantages than a Single family home, but can have more barriers to entry.

I would start by learning the business, learning how to syndicate and use seller financing, and then focus on two things if you want to invest in multifamily: Sourcing capital and sourcing deals.

More units allows you to hire staff and create some economies of scale. The more residents you serve, the more money you make.

Gino

@Ross Kane

Why would a seller sell when he can get a normal price? In this part of the cycle, as prices are dropping and it's harder to get financing, a motivated seller is not going to get top dollar, and most want to get rid of their headache.

Two years ago, it would have been easier, but not now. As far as the legal question, schedule a call with an entity attorney and ask them the proper structure to protect yourself. The fake partner will definitely get you into trouble.

If you're in business for yourself, then you will most likely get sued. That's why you do need proper insurance, along with asset protection.

Gino

@Robert Quiroz

Great question. The reality is about a year ago landlords could sell their properties at a high price without actual NOI. They were selling on pro forma, but the market and the debt market have shifted, and it's aa lot harder to achieve higher pricing with lower rents.

We've purchased over 2,000 units, and the simple answer to the question is that they are either mom and pops and run their businesses with ZERO KPIs, they do not want to risk losing tenants if they raise rents, and they don't treat their asset as a business.

When you take over, it can be difficult to get rents to market if they are very suppressed. Once unots come available, the best recourse may be to non renew.

Gino

@Daniele Stroppa

Yes you can. We have expanded the offerings we have.

Gino

@Chris Packer

This is a tough call. It's all about timing and the ability to finance the property. If you are cash poor, and can recoup cash from this transaction, it will give you some ammo for the next deal that is going to come in the next 12-18 months.

If you were using the space, that would be different, but if you're looking to rent it out, and are stuck without a tenant, you become even more cash poor

Good luck

Gino

@Leslie Beia

I would have a conversation with a securities attorney. Our community uses 

@Kim Lisa Taylor.  You are creating a syndication, where you are providing all the work, while your investors are passive. Look up the Howey Test for a definition of investment contracts.

Sounds like a really good deal. Good luck

Gino

@Suhaib Rehman

There are investor platforms, such as Cash Flow Portal, that offers underwriting tools that incorporate AI and automation. They also have tools for on boarding investors.

There are property managements softwares to help with property/asset management.

There are CRMs that help with capital raising and investor automations.

I would not focus on automation right now, but on the business of multifamily. Automation is a great tool when you can understand it is what you are analyzing.

Underwriting can be laborious in the beginning, but that's how you learn to value deals. Once you can properly analyze a t12 and rent roll, then plugging it into a tool will help you spot opportunity.

Gino

@Ellen Feiss

I would put in the coin op, and magically, the machines will be running 50% less. They are just wasting water because it's free.

the best scenario would be in unit washer/dryr hookup, but if it's going to cause damage, then not a viable option.

You may lose $100 per month in rent, but will make some money with the machines and not have any additional work to run the plumbing

Good luck

Gino

@Mark Brown

I would keep the price and just give the buyer the concession off the price. It will take you time to repair, and the quicker you can sell, the better.

@Matthew Wright

I would speak to the BTR guy @James N Sheils. 

Gino