All Forum Posts by: Gino Barbaro

@Jimmy S.

Hi Jimmy,

In theory, she is responsible for what happens in her unit, most leases state that.  You should charge it to her as additional rent and let her pay.  If she refuses and you still want her to pay, I would consider this as grounds for breaking the terms of the lease and have her evicted.

In reality, trying to evict her for not paying the damage may lead to more problems, taking her to court, losing a couple of months rent, etc.  You can look at this problem as an opportunity to specify in your agreements with tenants that they are responsible for all guests and damages incurred. 

Tough call! I'm sure you'll figure out the best way to handle.

Gino

@Evan Jacobs

Hi Evan 

I like to use coaches when I am learning about a specific topic, such as real estate coaches, business coach and even life coach to get myself back into balance .   It may cost more, but you are investing in yourself and the instruction you receive is focused on what your needs are.   Most successful people attribute their success to coaching because it allows them to set goals, be held accountable and to focus on what they want, among other things

Hope that helps

Gino

@Mike E.

First deal is where you analyze what you did and did not do, adjust your strategy and go on to the next deal.  If you have zeroed in on a market, maybe you should begin contacting brokers and give them your criteria for a deal, cash on cash, buy and hold, etc.  let them help you acquire properties and then locate a property management company too manage

Congrats

Gino

@Kyle Guida

Great job

Now onto the next one.

Gino

@adam mccarty

Sorry Adam, i did not see 2 6 plexes, only thought there were 11 units. I love these types of non conforming deals. People only see old houses, not the amount of revenue and cash flow these properties generate. You can usually buy them much cheaper than SFH per unit, and the rents are not that much less.

@Adam McCarty

If rents are low and you can increase, then it's worth further analysis.  I wish there were more 2 beds, because 1 bed apartments tend to have a higher turnover.  In my market, 2 beds are easier to rent out, more demand. If you can eliminate utility expense, then that's a plus.

The goal is to increase Net operating Income by raising income and reducing expenses. If you can buy this property based on actuals and you increase NOI, then you will have a great deal. It looks like you have this in this deal.

@Adam McCarty

What are the monthly rents pr unit? and what is the unit mix, 1 beds, 2 beds.  Can you have the tenants pay part of the utilities by instituting Ratio Utility Billing (Rubs), great way to have tenants pay for utility expense.  Does other landlords do this in your market.  Base on listing price, are units 22,700.

@Jay Myers@Jake Stenziano

Hi Jay,

We have had success with dealing with a local bank, although their terms may not be the best.  We are normally getting 4.25% (200 basis pts above 10 yr treasury), 25 yr amortizations, and 10 year terms.

If you want to grow business, consider partnering with someone who has money for downpayment, charge an acquisition fee to put together deal, charge a fee to manage, and ask for a percent of the equity.  If the deal is good, you will find investors.  Just have your business plan together, I have something called a credibility book that details my investment strategy and portfolio and I show it to all potential investors and banks.

Goof Luck

Gino

@Victor Webster

Hi Victor,

The replacement values verse what you buy for are so much higher and it costs so much more to build than to buy.  I am seeing in my market new properties coming online and they have to charge higher rental rates to pay off costs of building.  They are operating at a disadvantage, especially if the market takes a downward turn and they have to begin offering concessions.  If you are a builder, then it is probably wise to look into building because you already have machinery, labor, set in place.

When we insure our properties, the replacement values are so much higher than actual market values

Gino

@William Allen

Let me know when you land your next deal

Gino