All Forum Posts by: Gino Barbaro

@Duke Vang

Hi Duke

Have you ever considered looking at wholesaling properties?  A good way to get into real estate without any funds.  You can also see if you can manage any rentals for investors.  Some states require you obtaining a license, but if you have the license, a good low barrier of entry to make some money and get experience.  

Continue to learn and surround yourself with people in the business

Good Luck

Gino

Cities like Yonkers and Mt Vernon may bring down the tax figures in Westchester, but the average home is taxed higher in Westchester.  I have lived in both counties.  Westchester is more desirable because of its proximity to the city and jobs.  Putnam has very little industry, no job base.  We all have to drive to Dutchess, the city or Westchester.  The worst thing is that we really get very few services for our taxes, i.e. no city water, i have a septic system on my property.

@Lisa Casey

I wish they were as passionate about looking for a job as they were in scolding you about the responsibilities of a landlord.  These people are obviously leaches and have done this before.  I have been in this situation several times, and I just tried to get them out.

Continue with the eviction.  I once told a tenant to move out and forget the 2 months that he owed me.  I even told him the current month would be free if he was out by the end of it.

I lost 3 months rent but I also lost him.  Chalk it up to experience and a business loss.

How much longer do they have on the lease?

Gino

@Emmy K.

Hi Emmy

Have you contacted a lawyer and asked about the provision of noise and if it needs to be in the lease?  Every municipality is different, and maybe your city will allow you to evict even if it is not stated in the lease?

Can't hurt to ask.  The lawyer may be able to offer you another alternative.

I just evicted a tenant because of smoking, but he was on a month to month. Gave him the chance to stop, he didn't and I continued with the eviction.  Now he has to pay back rent and legal fees.  The threat of legal fees may scare the tenant into behaving.

Gino

@Dean Kohler

Hi Dean

We self manage our properties, but I did employ a management company when I owned a couple of small duplexes.

Here is a list of questions I ask Management companies

How long have you been in business?

Do you have a website

How do you utilize social media?

How many units do you manage?

What are the types of properties that you manage? Single Family, Multifamily?

Do you manage any units in the vicinity of my property?

What is your fee to manage properties?

What services are included in the fees to manage the property?

Will you employ an onsite manager, and what are the cost associated?

How much do you charge to renew leases?

How do you advertise your rentals?

What are your tenant screening policies?

What is the cost of your staff: leasing agents, maintenance crew?

What are the hours for the office?

What type of property management software do you use?

What is the cost of your average apartment turn?

What is the timeframe for your average turn?

How long does it take for maintenance requests?

How do you document maintenance requests?

Do you employ your own maintenance staff, or hire outside contractors?

Will you inspect all work performed on the property?

Will you hold my account in a separate bank account?

Do you perform tenant surveys?

What is the average rent in the market for my apartment?

Do you charge security deposits?

What type of fees do you charge tenants?

What is your strategy on increasing rents to market?

Do you handle Section 8 tenants?

How long is the contract for?

Do you handle eviction, and if so, what is your process?

Do you have an after hour call center?

Do you belong to any Property Management Organizations?

Has your firm been sued in the last five years?

Do you employ an employee handbook?

What type of training do you offer to your employees?

Do you have a tenant referral policy?

Can you provide me with a list of a couple of properties that you manage

in the area?

Look over the documents that the management company uses, and the policies

that they will be enforcing.

Hope this helps. These questions may all not apply to SFH.

Gino

@Mandy Silveira

I don't see why they would say it is a bad thing.  The only negative I see is that you will begin to see yourself as an agent and not an "investor".  Don't lose sight of the fact that most o the wealth created in real estate is from investors, not commissions.  Agents are always chasing the next commission, and lose sight of the big picture.  Keep the big picture in mind and you will be okay.

I got my license in NY and it has not affected me.  I also got it to educate myself on real estate laws and the relationship between agent and buyer and seller.

I actually think it lends to your credibility if you are an agent. You will have access to the MLS and you will be around deals and people who are in the business

Good Luck

Gino

@Ronald Logan

Hi Ronald

Find a mentor who has done what you are attempting to do and ask him/her how they started. You have a great idea on buying and holding for cash flow. Just research the area to see if it is feasible. I know in NY where I live, I can't buy SFH and cash flow.

Look into multi family properties also.  Don't have the limiting belief that they are too big and you can't do it.  You an always start out with duplexes, ti plexes or quads.

The real way to get out of being stuck is to identify "WHY" you want to get back into real estate.  If your "WHY" is strong enough, I know you will figure out your "HOW".

I just recorded a podcast on this very topic.  I was stuck about 4 years ago, and did not know where to start.  I finally realized I needed to create passive income, and that my current business was only a "job".  I am posting it on my site this Friday.  I think it would really help you.

I was able to jump in 3 years ago, and now with my partners we own 675 units.  I needed a reason to jump in and I was fortunate to partner with 2 other guys who are terrific.  Maybe seeking a partner is a good way to jump in.  It will hold you accountable to someone else.

As far as where to begin, you need to be able to analyze a property quickly, accurately and based on actual numbers.  I shoot for 10% cash on cash, and 8 caps for larger multis (In my market).

Secondly, get out there and start networking with banks, real estate agents and other professionals.  Let them know you are in the market and ready to buy.  That first deal will create the momentum and will give you the credibility.

Hope that helps

Gino

Hi Anthony,

There are countless ways to approach a fix and flip.  First, it is a difficult business that is all about buying, raising money, fixing and then selling.  It would be difficult to secure funds from an investor if you don't have a track record.

That being said, there are some fantastic resources on this site for fix and flippers.  Read J. Scott's book on Flipping Houses. It will give you a ton of ideas.   Create a business plan to show your investors and expect to share more of the profit in the beginning.

The key is to find a great deal.  If you find the deal, the money will be much easier to locate.

Good Luck

Gino

@Dawn Anastasi

Hi Dawn

Congrats.  I'm going to call you the cashflow Queen.  A few of these deals will allow you to become financially free.  10,000 gross rents on 27,000 asset.  If this house is still worth 27,000 5 years from now, who cares.  You will be cash flowing great.

You are amassing an awesome portfolio

Gino  

@Brian Payne

Hi Brian

There are investors on BP that lend to SFH. I was speaking to an investor who lends to SFH. I will shoot him an email and try to hook him up with you.

Speak shortly

Gino