All Forum Posts by: David Krulac

@Bruce Lynn  Quest was bought by Inspera from Chocago in September, 2024 and is no more a seperate company.  In addition the new company does not do Solo 401K any longer.

@Nathan Gesner It seems like sometimes the syndicator is the only one who makes money, and often have no capital contribution, only finding/managing the deal.

We invested in one that purchased apartment complexes in the sunbelt, Texas, Florida, North & South Carolina. They ahd 50% LTV and therefore had 50% equity in each property from the get go. I thought this was a great situation sunbelt plus NOT overleveraged. Dividends were paid from the get go, but changes in the economy affected the valuations. Surprisingly, for some of the complexes the market valuations slipped to under 50% and therefore those properties were underwater, even with "only" 50% debt. After that happened several of the properties were "given back" to the lenders. With the smaller protfolio, at least the worst properties were jettisoned. Carl Ichan and T. Boone Pickens got involved and offers were made on the remaining portfolio. When an offer came in for 30 cents on the dollar, I decided bail out, so took a 70% loss. And I never bought a syndicate again preferring to be in contrl of my own destiny. To me syndicates are like buying stock, you are not the tail on the dog, but a flea on the tail of the dog. Somebody I know bought a car wash syndicate and lost money. And another investor I Know invested in a small residential property and dividends have been suspended and the syndicator is ghosting the investor.

@Jason Seay  We have in our lease that all parties are responsible for the total rent.  If one moves out the remainding parties are responsible for the total rent.  Additionally we keep the total security deposit until ALL the tenants move out, so the leaving party won't get their security deposit back until the last party leaves.  If you don't have those type of clauses in your lease, you might want to add for future tenants. 

We've installed the Moen leak detection device, which detects leaks both hot water and cold water, and monitors water usage and gives you weekly reports. Very satisfied with the results, operations and and the ability for both manual and automatic shut off before a leak can cause damage.. 

1. Sell more, especially builds from pre 2000

2. Buy more, especially builds from post 2000

3. After not financing anything since 2-3% interest, going to finance more

4. Manage less, turn over to professional management

5. Do 1031s

6. Fully fund IRAs and 401Ks

7.Work less ("I think I earned it" ... a few good men)

@Jeff Shaver  Check with NAVY Federal or USAA for possible financing.

@Jonathan Greene  Agree 100%.  I do a procedure every year at tax preparation time.  I evaluate the performance of every income generating property that I own.  I call the process "thinning the herd", and each year I evaluate the property performance and either take actions to increase the individual property performance or sell the under performer.  For example I sold 2 properties in the same town that was more than 30 minutes away, just because of the travel time to get there and return.  Another time I sold a property that had no off street parking, because tenants didn't like not having no place to park their cars except the street. This resulted in longer times to re-rent and well as reducing the rental pool. The effect of this process is that the portfolio is constantly improving by retaining the best properties and jetison the under performers.

I've bought and sold over 1,000 properties, and people always ask me "How many doors?"  Honestly I never know precisely, as I'm constantly buying and selling, and frankly I neither know or care. I bought a house last week and am selling a house next week, but I don't know how many doors I have today, unless I effort a count.  Its either "enough" or "too many" depending on what's going on today.  But truthfully I don't know!

@Jeff Shaver There could be a problem with the plan.  If you can't qualify for a Heloc, maybe you will not be able to get financing for the apartment purchase. Institutional lenders will look at your non/short employement as a negative.  All is not lost, if you can find a seller of the apartments who is alos willing to finance the purchase for you;  Or look for a private/hard money lender.

@Najeh Davenport  Start with the local zoning office.  Some of the areas that we invest in have some clauses in their zoning forbidding more than 3 individuals unrelated by blood or marriage from occupying the same unit.  This one cluase essentially bans all group homes. When going before public meetings with your proposals, drug, alcohol, and half way houses for former incarcerated, receive the most scrutiny. Other group homes for abused, veterans, and mental challenged usually have less opposition. Talk to your neighbors, get them on board for your project as the first step.  You don't want them coming to a public meeting lambasing you and your project.