All Forum Posts by: Gino Barbaro

@Jean Paul Rousseau@Jake Stenziano

Hi Jean Paul

I always try to consider my end goal when investing money, whether it be stocks, bonds, gold, real estate.   I am a buy and hold investor who tries to buy the asset at a discount, force the appreciation by repositioning it, and then refinancing the property to withdraw my capital invested. I will put aside, or usually the banks forces me to put aside a certain percentage for cap ex, depending on the condition of the asset

If you are buying a property and keeping it ten years, chances are you will have paid down a portion of the mortgage and value has increased through inflation and proper management.  That is when you can refi and use some of the proceeds for any major repairs

Hope that helps

@Jean Paul Rousseau@Jake Stenziano

Hi Jean Paul

I estimate cap ex to be around 250 per unit for multi families.  If i have a 10 unit building, I will set aside 2500 per year. Banks will want to see this, especially if you go to refinance.

Cap ex is just an estimate.  Look at all the individual components, roof, driveway, heaters, etc and try to estimate useful life and then replacement cost.  You can arrive with a number and try to annualize the number.

Cap ex is a line item after NOI, does not affect value of the property and is used to upgrade your property. It is a subjective number, just make sure to allocate funds or else you may be caught with a major repair and no money. I know that feeling, and it isn't a good feeling.

Good Luck

@Brian Jenkins

Hi Brian

Welcome to BP.  Great site and filled with so many knowledgeable investors

Good luck

@Stanley E.

Great Job Stanley for your first deal.  What other expenses do you think you will incur.  Property taxes, insurance, landscaping, capital expenditures,?

Calculate all these expenses and you will arrive at the net.  It appears your figure of 300 is correct.

If you net 300 per month, 3600 per yr, you will have you money back in 3.5 years.  Now that is fantastic

Good Luck

@Nick Aalerud@Jake Stenziano

Hi Nick

My partner and I use loop net and MLS to see who the brokers are that are listing the majority of the deals. It is Pareto's law. 80% of deals are listed by 20% of the brokers. Their listings may be crap, but we try to build a relationship with them and then try to have them contact us on new opportunities. You just have to show the broker a track record and the ability to close and let them understand your criteria.

The other way we use Loopnet or MLS is to see how long the property has been on. It may signal a motivated seller. We purchased a large property that was listed for about 5 years and the seller reduced his price significantly

Happy Hunting

Gino

@Miguel Dormany

Hi Miguel

Welcome to Bigger Pockets.  Great place to start your education.  I like your idea of starting out with a buy and hold, generate cash flow!

Ciao

Gino

@Theodore Renka@Jake Stenziano

Great Job.  More of these success stories have to be heard to shoot down the naysayers that say "it can't be done." You are living proof what hard work and taking massive action leads to.

Now it's time for an encore to keep the momentum going.  Good luck on  the next one.

Congrats! 

@Jamie Naylor@Jake Stenziano

Hi Jamie

You live in a great city.  I am going to be moving there in a few months to start investing in apartments.  Being a newbie is great especially when you have BP as a resource.  You come into it with no preconceived notions.  There are countless individuals on this site that are fantastic and very knowledgeable.  My advice would be to have an open mind and be willing to try any type of strategy, buy and hold, fix and flip, etc. and see what you like best.  Once you find your niche, devour as many resources as possible and then jump right in.  I have done some research in Jax and the market is great.

Good Luck

@Moises Rafael@Jake Stenziano

Hi Moises

If you are just beginning your career, it may be overwhelming to start out with a complete rehab.  You could begin as a wholesaler or just look for homes that have all good things wrong with them such as replacing carpet, paint, deferred maintenance.  When you have done one or two of these jobs, then you will know if you truly like real estate and will be better equipped to tackle larger jobs.  I always have to remind myself to walk before running.

I am more partial to creating wealth and buying and holding

Good luck

@Benjamin Cowles

Hi Benjamin

I would draw up a letter of intent and have the broker send it over, especially if you are dealing with a new seller.  It will show you are serious and professional.   Most real estate agents have one or you can find one online.   

I am in the process of closing on a 16 unit property and did the napkin route because I had done a previous deal with the seller and no broker was involved.  

Once the letter of intent is agreed upon, then proceed to the contract