All Forum Posts by: Greg Kasmer

@Orlando Chavez - I think you'll want to read up on the LLC laws in each of the states you are thinking about investing in. Some do have the ability to register and out of state LLC within the state for purposes of running a business, but you'll need a registered address (and agent) within the state. That would be applicable in a scenario in which you create the LLC in your home state and could operate it as a "foreign LLC" in another state. I would start to understand the laws in the states you want to invest and back into your answer. (FYI - I've had properties in Indiana with an Illinois LLC before so I can at least tell you that is possible.) Good Luck!

@Christian Orozco - Do you want to be active or passive in multifamily? That's probably the first large decision point. If you want to go active, I would have many, many conversations with other operators to get a flavor for the good, bad, the ugly about various sizes of assets and across several geographies. In my conversations with others a good starting point is a 10-20 unit building that is set up as a JV with another partner or two. Although you could invest all your funds into one deal, my guess is that you'll learn a LOT from your first deal and wouldn't want to put all your capital in there to start. Good Luck!

@Tracy Thielman - I was looking at my REO spreadsheet last week and analyzing each property's ROE (Return on Equity). I didn't come to the conclusion on whether I'd like to refinance yet, but helped me target which ones to identify. What about you?

@Jamier Tascoe-Davis - I'm local to you (Philadelphia suburbs), so I'd be happy to chat if you're considering investing in the area. Also, I would recommend you look out for a real estate group called "DIG (Diversified Investors Group) - they are an active group in the area that has networking and educational events. Good Luck!

@Amir Keysar - Are you looking for a roofer in Birmingham? I would reach out to people in that area specifically to inquire - whether it be on Bigger Pockets or local REIAs. Other ideas are to call roofing supply companies (that sell shingles, etc...) and ask them for few people that buy the most from them OR you can also use a website such as Thumbtack.com to submit your project for people to review/bid. Good Luck!

@Marcus Adam - I've often seen the expenses understated from sellers as well as brokers for multifamily properties to overly "inflate" the NOI and therefore try to sell for a higher amount. Some of the expense that I rarely see are unit turn expenses and lease expenses.

@Daniel Sehy - I think one of the costs that I see consistently underrepresented in Offering Memorandums (OMs) by brokers are the leasing costs to lease a unit that is vacant and the associated "unit turn" costs that might come from painting, minor repairs, etc... I'll even go so far as saying in the smaller multifamily space (5-40 units) I've seen those two expenses listed less than 10% of the time in an OM. Thanks!

@Vasudev Kirs - Looks like your next purchase is a stabilized/renovated purchase. If you have equity in your existing condo it's really up to you as far as how you want to "tap into" that equity. Let's say your condo is worth $200k - You can likely get a 75% "cash out" refinance with a mortgage or maybe up until a 80% LTV on a HELOC. You'll likely have 150k with a refinance loan or maybe 160k with a HELOC. The rate on the loan will be lower, BUT you'll be paying for the entire amount (150k) from Day 1, whereas with the HELOC you'll only pay the amount that you're actually using from the HELOC for the down payment. So, if you have 160k HELOC, but only use say 75k of that for a down payment, you'll only pay interest on the 75k. So, in my mind, it all depends if you plan on using the ALL the equity from your existing properties (in which I would say get a mortgage/loan) or only plan on using a portion of your equity from the existing properties (in which I would say HELOC would be better). Good Luck!

@Suresh Peela - There are pockets throughout the suburbs that are potential targets for you. If you're in Malvern I would stay within a 30-45 minute drive, especially if it's your first investment. I would second Mohamed's recommendation on Collingdale and also add Folcroft, Ridley, and Glenolden. You'll want to run the numbers on a few different areas to see if the rents cover the PITI (Principle, Interest, Taxes, Insurance) PLUS reasonable expenses for repairs, vacancy, and property management. Good Luck!