All Forum Posts by: Gino Barbaro

@Phat Vi@Jake Stenziano

Hi Phat,

owner financing is possible, but only if the seller is motivated and the buyer has some type of track record in investing in that the of deal.

What do I mean? It would be pretty hard for a seller to want to hold paper on his sale if the buyer has no experience with running this type of property.  He does not want to take back the property.

We just were able to secure owner financing on a 281 unit deal, 20% by the owner and 80% bank financing, only because the sellers were motivated, we had great relationships with the banks, we have a detailed business plan that we are currently following and we already own and manage this type of asset.  The owner actually proposed owner financing to us, and we were fortunate to have the banks finance the rest.  The key was that we bought the property right, the banks appraised the purchase at 11.7 million, and the sale price was 11 million.

This type of deal would never have happened on our first transaction, at least this magnitude.  We did have owner financing involved on our first deal, but that was only 25 units, and the same scenario was involved, motivated sellers and buying the asset at the right price, based on actual numbers.

I hope that helps.  Look for owner financing, it is out there, but you have to know where to look and don't be afraid to ask.  If you hear a broker say it's not out there, time to switch brokers.

Gino

@Brian Ewell

Hi Brian

you can go on MLS and call brokers that have current listings. Try to establish relationships with them, analyze their deals, and give them your specific investing criteria. Ask them to call when a property pops up with your criteria. You can go on loop net and target brokers that control several listings. These brokers are the ones that are getting deals and may get ones that they will share with you.

I go to town hall and look at a tax map to view the zoning in the neighborhoods. NY is so complicated and they have several different zones pertaining to multi, industrial, commercial, mixed use, and so on.

Good Luck

Gino 

@Andrew Halbert

Sorry Andrew, I should have been more specific.  Do you want to buy and hold, fix and flip, wholesale, buy commercial, buy single family homes, buy apartments, etc.  Real estate is so vast and encompasses many different strategies and techniques.  I think to be successful in life is to focus on one strategy, or nice as some call it, embrace it and learn as much as possible and then attack it. Most unsuccessful people in life just jump from one idea to the next because it didn't work out.  It takes time, experience and mistakes to learn a skill in life.

I hope that answered your question

Gino

@Manuel Ochoa Jr.

Hi Manuel,

It can't hurt to get a license, unless you don't use it and have to pay the fees.  I got my license and never used it, but it did give me the education of what a broker should do and the ethics involved in the business.  It also helps me understand better the fiduciary responsibility a broker has to his customer and the laws pertaining to fair housing, etc.

If you do get one, make sure to disclose in the transaction that you are licensed.

Good Luck

Gino

@Eoin Maher@Jake Stenziano

Hi Eoin

I am an investor who has holdings in Knoxville.  What drew you to the city of Jackson in Tennessee?

I also am very high in the state for investing in multis due to demographics, job growth, and  tax benefits as well as quality of life.

Gino

@Andrew Halbert

Hi andrew

what type of real estate strategy are you going to follow to launch your career?

Gino

@Troy B.

Hi troy,

it seems like an easy solution to have a tenant perform certain jobs around the property.  It is difficult when he doesn't perform and you try to collect the rent.  I would still hire him and try him but pay him for his services.  You can 1099 him, consult with your legal/financial team members as to how to treat this individual.  

It is imperative to consult with your team members how to proceed, because when something goes wrong, as it invariably does, you want to have the proper documentation to back you up.

@Steven McPherson@Jake Stenziano

Hi Steven

I think people who start with nothing but have a desire to learn the business are at a far greater advantage.  As Richest Man says, A fool and his money are soon parted.  It does not matter how much money you start with, if you don't have a plan, pick a niche, get coaching and or mentoring, all the money in the world is going to lead to zero results.  Sometimes having no money is an advantage because you become laser focused on not making hasty or foolish decisions.

I went into a large deal with limited funds but had the experience and knowledge to leverage that into seeking a partner/mentor that saw the value in the deal and my business plan.  Most of us who began with no money found a way to create value in the business and then continued with the momentum created with the small successes created from our first and second deals, making mistakes and learning and adapting our plans.

Good Luck

Gino

@Gash Nag

You can get real estate agents by going on to loop net or your mls and look for brokers that list these types of assets.  Begin to call them and develop a relationship.  Tell them what types of properties you are targeting.

Your other team members, such as your attorney or accountant, can give you referrals for a broker.  You can also visit your local chamber of commerce and check out what brokers belong.

I think you should begin by identifying what friends you will be partnering with, and then draw up a detailed business plan describing partner duties and goals.

I think if your goal is to net 25k per month, you are going to have to have a higher goal than 50 units.  Begin to analyze your market for returns and you will get a better idea

Good Luck