All Forum Posts by: Gino Barbaro

@Miguel Luzon@Jake Stenziano

Hi Miguel,

I don't think it is too much for your first deal.  Seller financing works when you educate the seller on the benefits, such as having residual income and not being hit with a possible cap gains on the entire sale.  If you use an agent, most do not understand seller financing and may even talk you out of it.  Seller financing works if the seller is motivated, which it appears you have.  Try the seller finance route first.

The general rule is you can get either price or terms.  If you have to meet his price or come close, then you should be able to dictate terms, i.e seller financing, length of note, interest rate, etc.

I think you have the right mindset for the first deal.  Aim high like you are doing.

Good luck!

@Colleen Raponi

Hi Colleen

I just joined bigger pockets. What a fantastic resource to surround yourself with like minded entrepreneurial people.  I have been investing for 15 years but most of my success has been in the last three years.  I got lucky and partnered with two great and smart guys.  I think you will love real estate

Good luck

Gino

@Aaron Howell

Just when you think you've seen it all!

At least you can cut your water expense

Thanks for sharing

Gino

@Josh Autery@Jake Stenziano

HI Josh

I tend to agree with Rob.  Especially if you are dealing with a property with multiple systems, such as septic fields, chillers, structural factors, etc.  In my experience, we began with a 24 unit purchase and used a  home inspector.  We were pleased with his thorough analysis and report.  We just used him to inspect our 288 unit purchase 2 months ago and were once again pleased.  I guess if we had an issue with something he was unfamiliar with, I would have called in a "specialist"

Hope that helps

Just make sure you do inspect each purchase

Gino

@Michael W.

Hi Michael

If you are going to form an LLC, it would be wise to place each investment into its own entity to protect one property from another. Unless you feel that the properties you are purchasing are not worth separating. People may tell you it is more costly because you have to file a tax return for each LLC, and their is extra bookkeeping and paperwork. Just remember, if one of your properties gets sued and the assets are all held together, then the entire portfolio is at risk. I think it is worth the extra expense to separate. Also, when you decide to sell a property, it will have its own bookkeeping and will be easier to show buyers the property performance

Goof Luck!

Gino

@Chris Tiff@Jake Stenziano

Hi Chris

I feel your pain.  I live in Putnam County NY and the numbers don't work very well here either once you factor property taxes, insurance, and per unit costs, among other expenses such as regulations and labor costs.  I was fortunate to partner with a friend who lives in an emerging market, Knoxville TN.  We have grown the portfolio and I am now going to move to Jacksonville Florida to expand the portfolio.

You could make the move to an area that you see is emerging, i.e. job growth, population growth, or you could find a partner in that city. I am sure you could find someone in Bigger Pockets to partner up with.   Just choose a location and then begin the journey.

Good Luck

@Munira Hassan@Jake Stenziano

Congrats Munira

A journey of 1000 miles begins with the first step and you are well on your way.  I feel this is an excellent way to get into real estate.  Have the tenant pay your mortgage and you possibly live rent free, or at least a reduced rate.  Once the bug hits you, you'll be ready to sell and buy a fourplex and move it

All the best

Let me know how it works out!

Gino

@Ross Zachs@Jake Stenziano

Hi Ross

I learned this lesson from a wise man. 50% of a deal is better than 100% of NO deal. At first, you may have to accept a bit less in equity and cash flow to prove yourself. Once you have a track record, the sky's the limit. Investors will be seeking you out if you can show credibility and a return on their money. Ask your partner what he is willing to do, and then compromise. Just make sure you spell everything out in a contract and if you do form an LLC, include everything in the operating agreement

Good Luck!

Hope you enjoy the business and make tons of money

@Mike Mills@Jake Stenziano

Hi Mike

Congrats!  If you have any questions, feel free to reach out or email me.  I love to talk about real estate and hope I can help in any way

Gino

@Benjamin Cowles@Jake Stenziano

Hi Benjamin

I would not like to get the reputation of just submitting low ball offers to acquire properties. It may be hard to work with other agents in the future if you become known as one who submits low offers.  That being said, if you feel the seller is motivated and there exists a big problem with the property, then I would submit that offer.  A broker just wants to close deals and move on.  Show the broker the reason why you are valuing the property at that price point, and he will submit the offer.  

good Luck

Gino