All Forum Posts by: Gino Barbaro

@Ronald Perich

Ron

There comes a point in every seller's mind when it is time to call it quits.  Just because she hasn't dropped her price doesn't mean she isn't motivated.  If it is a good deal, he should just wait and give her more time.  I purchased a 136 unit from a seller who had it in loopnet for 5 years without dropping price.  Price was listed at 6 million.  I knew he was motivated, fighting with brother and just burned out.  I offered 3.7 million and we ended up at 4.075 million around 8 weeks later.  Seller came to reality and wanted out.

This seller may be different.  It helps tremendously if you have a seller that is motivated and you can solve a problem for them.

@Daniel Perea@Jake Stenziano

Hi Daniel

This lady is obviously pretty motivated to sell.  Are those current market rents or can you raise them?  What is the per unit cost per apartment in your market?

You can possibly find a bank willing to finance it for 15% down if you show the bank the value the property offers.  IF you are purchasing it at a discount to the market and you can raise the rents while lowering her expenses, then show this to the bank.

Ask the seller why she does not want to hold paper?  Sellers are fearful that they will not get paid and have to take back the property.  Your job is to show this seller that you will follow through on paying her.

Finally, you could move into one of the apartments.  It may be easier to finance the property if it is owner occupied.

Good Luck!

@Jack B.@Jake Stenziano

Hi Jack

Leverage works both ways.  You can either make a fortune or get wiped out.  I would prefer to own one apartment complex with 50 units than have 50 single families.  You are leveraging time and resources with apartment complexes.

It comes down to risk tolerance and your strategy.  Owning the most amount of properties with fewest amount of your own dollars will lead to the highest creation of wealth.  When those properties appreciate, you will realize a higher return.

@Tony Velez

I think transactions don't need to be that complicated to make money in the business.  The more moving parts, the more that can go wrong.  It is true that solving problems is how you make money, but you can't perform miracles.  This guy has no shot to sell his crap

@Cesar Tamayo@Jake Stenziano

Hi Cesar

You can have him sign a notarized affidavit swearing that he is renting for that amount.  You can also ask to see his bank account and verify he is depositing that amount.  If he tells you he receives cash, then be cautious.

Always try to find the true motivation of the seller. 

Good Luck!

@Tony Velez

Hi Tony,

Maybe he was frequenting the bar a bit too much.  I would run.  You're going to go to closing and some impossible issue will appear on the title report.

AT least you can laugh about it

I meant to say the real estate market.

Sorry

Not even the gurus know what will happen to the stock market.  The key is to watch the flows of money, which is difficult if you are an individual investor.  Still hard for the pros.

What type of real estate do you invest in?

@Peggy Liu

Hi Peggy

That's why most real estate investors are in the business.  We have control over our investments, unlike owning shares of Apple.  I think multis have been getting bid up and cap rates have been falling due to the unstable market.  Money follows a return and we are fortunate that rents are going up 3%.  These factors are bidding up the prices of properties, so it is getting more difficult to "Buy Right"

What do you think is going to happen to the market?

@Ryan Ackerman@Jake Stenziano

Hi Ryan

Welcome.  You are getting into a great business.  Tons to learn and tons of strategies.  Wish you all the luck.  Reach out to me if you have any questions on Multifamily investing or Buy and Hold

Gino

@Maggie L.

Hi Maggie

Have you considered another partner.  You have a track record and a business plan.  You can have the partner finance the deal and you work the property for part equity

Also, do you have any money in an IRA. You can place it in a self directed Ira and invest in real estate

Good luck