All Forum Posts by: Gino Barbaro

@Nate Rohlf

Hi Nate

A broker is an indispensable team member. They will be out there scouring the market looking for deals.  They will also present deals to you first if you have a track record with them.

If you see a property listed, then by all means contact the listing agent and work directly with them. Just keep in mind the agent is working for the seller, not you. Anything you disclose to the agent they are bound to share with the seller

It is sometimes easier to work with one broker on a deal, less going back and forth. I have heard of buyers trying to discount the commission of the agent if they only used one broker. Not a great way to build your team or reputation, but people do it.

Brokers are out there looking for deals.  Make sure you connect with brokers that buy and sell your type of real estate. For example, don't use a residential broker to buy commercial and multifamilies.

Good luck

Gino

@Henry L.@Jake Stenziano

My partner is a former pharmaceutical rep who just left his job and is working full time in real estate.  His name is jake Stenziano and you two should talk.  I'm sure you have a ton in common.

Gino

@DeLisa Lovett

Hi delisa

Choose a specific type of strategy and really immerse yourself.  If you like fix and flip, choose that niche and learn as much as possible.  I've found that you will never know everything you need to, so there will come a time you have to take a leap of faith.   Seeking a mentor is a great idea.  Bigger pockets is a terrific platform to seek advice and listen to pros.

I wish you all the luck.  You can always reach out to me.  I love talking about the business

Gino

@Henry L.@Jake Stenziano

Problem is, finding the right accountant is worth their weight in gold.  Prices in the northeast are much higher than the rest of the country unfortunately

I would make sure that the member is well versed in real estate, possibly owns some investment property, and begin to ask questions such as cost segregation to see if he rely understands real estate.

Try to have him work on a monthly retainer, having costs built in so you get no surprises .   Tax returns are usually separate fees.

As you acquire more property, you may outgrow this team member and have to look elsewhere.  Some accountants are starting to use the internet and the cloud to serve their customers better.

Once you find a good accountant, keep him

Good luck

Gino

@Antonio Boone@Jake Stenziano

Hi Antonio

Buying a home is just like anything else in life. It can be daunting the first time you do anything.  The successful person sticks with it, makes a few mistakes, evaluates what he did wrong, seeks out help from a mentor or coach, and repeats the process.  

I equate it to baking a cake.  Once you learn the recipe, just repeat and you will get chewy chocolate cookies every time.  No one is born with knowledge or experience.  

Real estate has many different strategies, buy and hold, wholesaling, multifamily apartment, etc.  Each one has certain specific areas of expertise that have to be mastered. Learn one strategy, master it, and then move on to the next.

When a seller sells a home FSBO, it means he does not want to pay a professional a fee to sell his home. Subconsciously, buyers try to discount the commission from the price of the home. Try to convince him to take some money off the price because he is not using a broker. Always worth a try!

Good Luck

Gino

@Franz Fernanez

Hi Franz

If you refinance, will you still have negative cash flow?  I would sell the home and allocate the funds elsewhere.  If your home goes vacant for a couple of months, then your cash flow will turn from bad to worse and you may become one of those motivated sellers that people on Bigger Pockets looks for.

If you plan on moving back, holding on may make sense. Otherwise, you will need to hire a management company to manage the property.

Good Luck

Gino

@Kyle Grimm

You still have plenty of time to blow past your goals.  I guess next year the bar has to be raised.

What are you aiming for next year?

Gino

@Thomas Blaine@Jake Stenziano

Hi Thomas,

My partner and i call these sellers Mom and Pop Apartments.  They have no systems, minimal web presence, inadequate bookkeeping, deferred maintenance, and the list goes on and on.

You need to get his last 2 years of tax returns, so you can make an offer based on his ACTUAL numbers.  He is going to balk, just tell him the bank is going to want to see these figures for you to get financing.  Sometimes the seller is hiding something, sometimes they are so disorganized that it may take them time to get everything together.

You always have to keep in mind you make your money when you buy.  If you purchase this property at your criteria ( i look for 10% cash on cash 8 cap and 1.3 Debt service), then when you reposition this underperforming asset, you will be forcing the appreciation and you will be able to refinance the property down the road. (in the near future,, depending how long it takes to get the job done)

I mentioned in another post about proformas and how they tend to be rosy predictions of the future.  Just tell the seller you will buy his property at his price if he hits these proforma numbers, which he won't.

Stick to your guns and don't overpay, and have patience with these types of sellers.  Most people give up and don't walk that extra mile to get the job done.  Remember, there is no traffic after that extra mile

Good Luck

Gino

@Annette A.

Hi Annette

The perfect response is to tell people that you are too busy creating wealth and taking control of your financial future.  You have found the perfect vehicle in real estate and then ask them if they want a ride.  I'm sure you're going to get a lot of dumb stares.

People feel intimidated when they see someone like yourself taking things into their own hands.

Good Luck

Gino

@Account Closed

Hi Nylisha

I am in the same predicament.  I own a large portfolio in TN but my partner is managing and I live here about an hour outside the city.   I am going to move to Jacksonville Florida with the family to expand portfolio, and get hands on in managing properties

I am also very happy where we live, but weather and quality of life and cost of living all factored in for me.

It is a difficult decision in life

You can always reach out to me if you need some one to talk to

All the best 

Gino