All Forum Posts by: Gino Barbaro

@Candace Ellison

Hi Candace

My partner and I are currently investing in Knoxville and looking at Chattanooga. You have a really good, vibrant market there.  What types of multis do you own?

Good Luck

@Nick Noon

Hi Nick

I think most of us on this site have experienced this frustration.   People tend to have limiting beliefs that if we are not careful will creep into our subconscious and affect our thinking.  I have tried to surround myself with positive people and always listening to motivational speakers such as Zig Ziglar, Jim Rohn, Napoleon Hill, etc.  Some people really care about you and don't want to see you fail, while others feel that if you succeed, then they will be left behind and your relationship will no longer exist.  Let the haters hate, they don't have their own dreams.

The fact that you need more says it all.  Remember, if we don't continue to grow in life, we will only wither away and die.  I think we are here to serve others, and real estate can allow you to serve people who can't buy their own home.  You will be providing a needed and vital service

Gino

@Eric Hathway

Hi Eric

we just did an owner finance on 288 units for 20% of purchase price.  2.2 million dollars at 4.5%, 30 yr amort, we wanted 7 yr term, he balked and we settled at 5 yr term.  The seller was motivated and we got a great deal.  If your seller is motivated, I think 5-7% range is fair.  Banks are lending anywhere from 4 to 4.75 on 25 yr commercial.

If the deal is terrific, then take his loan, reposition the property and refi in the near future to pay him off and possibly extract some capital for yourself.

I always like to hear seller financing deals.  It shuts up all the people that say it's impossible to do.  They're not easy, but nothing good is.

Good Luck

@Hollis Blank

Congrats on the first deal!  Make sure you read the lease and you are comfortable with the language.  You don't want to find out the tenant is there for 2 more years at 300 per month under market.  You will be stuck with the tenant.  Make sure you get all pertinent info from seller in regards to tenant, if he has it.  You want this info in case you have to evict later on.

Gino

@Detric Moton

Hi Detric

I would put together something that I call a credibility book, almost like a business plan that highlights your business and your strategies to selling a home.  Clients want to know how you are going to sell THEIR home, and you should be able to tell them how you market homes and sell them.

Begin to network with other professionals, such as attorneys who handle real estate closings, accountants, property management companies, insurance companies.  Forging these relationships will help you to get known in the market.

Think about starting to write a small column in the local newspaper.  People equate writing with someone who is an expert, and they may contact you that way.  I also look at chambers of commerce as a way to meet people in the business.

Gary Keller from Remax wrote a good book for agents.

Good Luck

Gino

@John Wulf

Hi John

Have you considered purchasing multis, small apartments.  You can continue to fix and flip, accumulate that chunk of cash, but reinvest that cash into apartments that will cash flow for you and offer tax advantages.  You can have the best of both worlds

Gino

@Deb Allis

Hi Deb

Real estate is a people business and you have to treat your tenants like customers. Offer them quality customer service, i.e. maintenance requests, affordable clean housing but expect to get paid for the services you offer. Do yourself a favor and screen tenants before you give them the keys to your apartment. Seeking a management company that manages your type of asset (SFH, apartment complexes) can be a good strategy if you feel uncomfortable managing your own. You can learn their systems and implement into your own business

Good Luck

Gino

@Erica Gerhart

Hi Erica,

what makes this the perfect first investment property?  You need to be able to look inside and figure out costs to renovate.  Hopefully, it is in pretty good shape.

Banks are pretty difficult to negotiate with REO properties. Investors sometimes think they are getting a good deal. You have to be able to figure out how motivated bank is to get rid of the property. It seems like you have an advantage that you are very familiar with the market

Good Luck

@Brian Lacey

I agree with Ben.  Try to give the tenant a chance to pay and get out, but in my experience the tenant just confuses your kindness for weakness and drags the situation out even longer.  I would file for the eviction and if they pay, then great.  But when inevitably they can't pay, you haven't wasted precious time taking back what is technically your property.

It is a much easier decision for me to file the eviction because I am being held accountable by my partners.  They do not want me to be running the business as a charity so it gives me the impetus to do the correct business decision.

Hope that helps

@Jean Torchon

Hi Jean

I think one of the most important aspects of any business is to try to be consistent and set up a system.  For instance, landlords should perform background/credit/criminal checks on all prospective tenants.  If you set this up in your business, be consistent and check everyone.  Also, try to administer the rules equally to all tenants.  We sometimes forget that we are running a business and get involved in the charity business.  It is difficult when a tenant can't pay the rent, but it is equally difficult when we can't pay the mortgage or the landscaping bill. 

You can rent your property on craig's list, rentlinx, apartment.com, there are various websites.  You can also create your own website advertising your properties with pictures and videos.  Our lease is not prohibitively long and lists all the basic language.  You can always have a lawyer look over your lease to ensure it is comprehensive and protects you.

Good Luck

Gino