All Forum Posts by: Henry Lazerow

“Once fifty percent of tenants waive their right to purchase, the time of tenant rights ends”

Being 50% of tenants voting no to buying ends the opportunity for tenants to offer, sellers could probably just get the occupancy down to 50% and set up an LLC to rent the other 50% of units, may not even need to empty whole building saving on the carry costs. Is there a restriction on owner interest in a corporation for tenant voting rights? The original 30-60 day notice period is really not a huge deal as long as know can sell after that period ends without issues. We already plan out most of our listings a good month or two in advance anyways.

What are the work arounds Washington DC investors/realtors are using? I assume just emptying a building of tenants prior to sale is probably going to be easiest. 

Congrats on the first $10k saved! I have lots of first time buyer investor clients and always recommend a house hack (buy a 2-4 unit and live in 1 unit) but you need at least $40-50k I'd say to safely start even low down as need repair reserves, etc. Condo can also be a good option if only have $10k just make sure it does not have a rental cap, I have sold a few condos to investors who move out after 12 months, rent it out and then buy another. They can get you started with little risk/capital. I find condos with no elevator tend to have lowest HOA and cash flow best.

I self manage a 4 unit that’s 2 hours away I have only been there twice. I also have several California clients who self manage north side Chicago rentals. As long as the area is good it’s easy. Just need handyman and a leasing agent. 

Investing in a friends syndication or flip is one thing, but I always thought these “public” syndications were extremely risky as they don’t care about you and can easily turn into permanent loss of capital. They get their fees either way. I still see ads for Ashcroft online, it’s crazy they still are getting new clients while doing multiple capital calls.

There is really no need for a mentor and most of them are Gurus trying to sell you some BS. I work with a ton of new investors as a realtor the #1 way to get started is just find a 2-4 unit in decent shape and buy it low down with conventional financing 5-10% then you can live in it for a year and do another next year. If market appreciates you can get a HELOC on it or cash out refi in a few years to scale faster. For running numbers have your realtor if he invests run through it with you or use one of the free investor calculators on BP.

Rates have fallen in the last few days. You should be able to get 7.0 investment at 75 LTV on Monday with conventional financing. Try locking in morning Monday as rates been very volitile.

This is an awesome post man and rehab looks great for the price!

I needed some extra financing on my first rehab and opened several 0 apr credit cards which I used for materials and payed them off before any interest. It's not huge but can easily get you 20-30k financed at 0 APR.

There also is Lightstream unsecred loans. Say home improvement and they will send you up to $50k at relatively low rates with no pre-payment penalties and they do not check how you spend the funds. Need good credit. 

Hard money rates/terms so awful I don't see it as a viable option unless have some insane deal. Most my clients do conventional and some creative options for a bit extra financing if needed, saves a lot on fees/financing costs this way.  

If you have $100k to invest skip over the cheap headache markets and go for a major metro class B or better part of city with high demand from qualified renters. For example here in Chicago we have many of these type of neighborhoods that cashflow with solid tenants if buy a 3/4 unit. You will typically need be at $500k+ purchase points but its usually worth it vs buying lower class areas or single families. The 4 units are my favorite and really compound as the rents go up each year, it adds up fast.