All Forum Posts by: Gino Barbaro

@Gianni Laverde

Hi Gianni

I am currently investing with my partner in Knoxville Tn, and will be exploring Jacksonville Fl.  The book was written for beginning investors and investors looking to create wealth through multifamily investing.

Please reach out to me with any questions

Thanks

Gino

@Adam Schellhammer@Jake Stenziano

Hi Adam

The seller usually pays the commission, but anything is negotiable.  In my first large transaction, the listing broker was also our broker.  We were able to negotiate a cut in his commission and he also held a note for part of the commission that we split with the seller. All parties involved wanted to get the deal done so we all gave a little bit. We refinanced the property a year later and paid off the broker's note.  Word of caution, some brokers are not creative and we had a great relationship and track record with this broker

Good Luck

Gino

@MARK MONTANO

Sorry Mark, first word should be Proforma  

@MARK MONTANO

Programs are used by sellers to ask for a higher selling price.  The seller is telling you that the property "can" generate a certain amount of income, as opposed to what the property is actually producing.  The biggest mistake us investors make is to purchase properties based on the proforma numbers.  You should only purchase an asset based on its "actual" numbers.  Just take the last 12 months of income and expenses and calculate your purchase price based on these figures.  You can out together a proforma if you are trying to  pitch your deal to an investor/partner

Good Luck

Gino

1. Wheelbarrow Profits is your ultimate guide to real estate. The authors Jake Stenziano and Gino Barbaro, provide readers with clear and concise strategies on investing. If you are new to re al estate investing and want to learn more, this book is extremely beneficial. 

•  How To Create Passive Income
• Build Wealth
• And Take Control Of Your Destiny Through Multifamily Real Estate Investing

@Leonard Nisay@Jake Stenziano

Hi Leonard

I am in a similar situation as you, living in the New York market where it is difficult to find deals that make sense from a cash flow standpoint.  I was fortunate that my partner relocated to Knoxville TN, an emerging market, and I began to invest there.  I am moving to Jacksonville in the spring to expand the portfolio.

The reason I am telling you my background is to have you ponder whether you would like to search for a partner in a market you are researching, or if you would move to that market and set up operations.  Both decisions are difficult, but with difficulty and struggle, it will lead to growth.  You can also acquire properties and hire a management company to run.

Good Luck

Gino

@Dane Fossee

Hi Dane

Trying to understand why people will not abide by their contractual obligations.  If someone signs a contract, why is it the landlord's fault when they can't pay.  Hardest thing for me is taking it personally instead of looking at it as a loss to the business and an uncollectible.  Unfortunately, as Brian H. said, it is a people business

Gino

@Hope Johnston

Hi Hope

Anyone who goes into business should form an LLC or incorporate. It is one of those things in life that everything is okay until something happens. You want to protect your assets so placing them into separate entities will do that for you. Most people operate under the assumption that nothing will happen to them.

I think it also goes to mind set.  You want to start out your business and not think of it as a small business.  Start your systems and processes correctly in the beginning so when you are growing, you will have these systems set up.

Gino

Wheelbarrow Profits is your ultimate guide to real estate. The authors Jake Stenziano and Gino Barbaro, provide readers with clear and concise strategies on investing. If you are new to real estate investing and want to learn more, this book is extremely beneficial.

• How To Create Passive Income
• Build Wealth
• And Take Control Of Your Destiny Through Multifamily Real Estate Investing.

@Jose Nebres

Don't think too small is the answer to your question. We all have limiting beliefs of what we can and can't accomplish.  You need to educate yourself and try to build a team around you before you start.

 I think a 4 plea is an ideal size to begin your career.  If you make a mistake, it probably won't be catastrophic.  At the same time, it is a great way to take your lumps and learn how to manage the property, the tenants, the bookkeeping, the books, etc.  If you like the business, then go buy the next one.

If you hate real estate, then you can sell and at least say you tried it.

I like multis because there is some type of economy of scale with one roof, one lawn to cut, one location with tenants to collect rent.  If you have one vacancy, then at least the other units will carry the ongoing expenses.

Good luck!