All Forum Posts by: Gino Barbaro

We are starting to implement more VAs into our accounting and property management parts of the business. Just wondering what companies y'all are using, and how are VAs helping your business.

Thanks for taking the time to respond

Gino

@Jefferson Black

They are 15-20% below because of the AC problem. Once you do address that, I agree you'l be able to achieve your goal. What makes the property a good one?

Congrats!

@Tasha Smith

I would never engage the residents by asking them what fair rent is. Do we pull into a gas station and the attendant asks us what is fair? The price is posted, and it's the same with almost every other business.

I would go online and do a rent comp analysis on what current market rents for your type unit are getting, and if you're afraid of losing them, then you can give them a discount.

If a tenant has a larger space, more amenities, a parking space, then you can add additional rent. But, if the units and amenities are basically the same, then when the rent agreement comes due, propose the same rent structure.

As landlords, we need to continue to keep rents in alignment with the market. Some years, rents actually do go down, and we need to give concessions. And some months they go up, as your expenses do.

Please don't make the mistake I made in one of my units. I didn't raise rents for a few years.When it came time to renew, rent was 900, and market rent was around 1400. There is no way that resident can afford a 500 jump, and I ended up losing thousands of dollars.

Real estate is a business, collecting a future stream of revenue, and you need to be in control of the revenue and expenses

Gino

@Jefferson Black

What is the turnover on this type of property? I would hate to be a resident and have issues every summer. 

If the cost is going to be high, try to negotiate a concession from the seller. Not sure how bad the mini splits would be, but they are very efficient and work really well.

@Gavin Wynn

I'm glad you are thinking about asset protection. In my opinion, it is something you should sit down with an attorney who provides entity protection, so you can map out what you're trying to achieve. On my first deal, I created an entity for that property. As I grew, my structure became more complicated.

Anyone can create a cheap LLC. But are you creating the right one, in the right state, for your objectives.

If you want an intro to who our community uses, DM me and I will put you in touch

Gino

@Jose Quinones

One of the biggest mistakes I made in investing was not thinking of exit strategy. We've created a concept called the Three Pillars of Real Estate® --> Market Cycle Debt & Exit Strategy.

Once you learn how to use all there in conjunction, your risk decreases, and you start to build a real estate business.

DM me and I will send you a copy of our book Creative Cash, which dives into the topic in detail.

Gino

@Jose Quinones

Great looking deal. What is your exit strategy?

Gino

@Brandon Ja

I would contact a local realtor or property management company to see what is the nor for the market. You may be even able to go on apartments.com to see what the competition is doing.

After 5 days, rent is late. I charge a 5% late fee, ( you could charge a flat fee, based on the rent)cthat is added to their rent. Every state is different with days to post notices, and when you can start your eviction proceedings.

The key is to charge it, enforce it, and make sure you follow the rules for everyone.

@Tom Server

Would you consider selling the real estate, strengthen your foundation, and start again? I think it comes down to the stress that the debt is causing you. If you can deal with it, then you can continue to forge ahead. But if it's keeping you up at night, and you feel trapped, then selling may be the option.

I would read The Psychology of Money by Morgan House. Great book on taking about our relationship with money and how we make investing decisions. If the 401k loan is impacting you, that's where your focus is.

I would definitely start with the credit card debt, and work my way up

Gino

@Teahjsia Frazier

Short term, I would learn how to use seller financing as a way to purchase deals. I would consider buying a duplex, tri or quad as a primary residence and move into one of the units and rent out the others.

You could sell your primary and use the capital, or pull the HELOC and use to buy a small multifamily.

You can also learn how to flip properties to generate additional income to use to buy properties to hold longer term.

You can also consider looking into a job in the real estate industry, such as an analyst, broker, lender ,etc that can get you in the game

All the best

Gino