All Forum Posts by: Jack Edgar jr

@David G. Be careful to follow state/city RE rental guidelines. Be straight with all interested, explain there are multiple applicants and taking best and final by x date. Anything else u want to add feel free but watch rental regs.

I’d play it out first before getting too worked up from hearsay.  If the landlord gave you documents (including the estoppel) than you may be able to do something if this what you find when you officially start collecting. 

 Who knows what is really going on until you start collecting the rents and seeing first hand how the building operates. 

Just do all the necessary paperwork to let the tenants know your the new  Sheriff in town and see how it plays out for you. 

Who’s handling the day to day? If you are make sure to have all the figures in place too. The operating agreement will help in whatever you and your partners decide and needs to be spelled out fully before any $$ transacts. Based on what you’ve mentioned have there needs to still be an exit strategy built into your agreement. For any partner to leave the group and/or enter. One thing to also keep in mind is the value you play in creating this opportunity going forward. Frankly, I’d keep it simple as possible with straight forward terms. Perhaps in this deal you give more to your parties bc of the risk of the loan but you and your partners will all gain the experience necessary to level up soon enough. As someone more experienced than me once said, “it’s better to have a piece of an investment than nothing at all.” What’s it worth to you?? Ps just theories not a lawyer either.

Start with real cameras. Don’t expect to change the neighborhood by yourself. Invest, connect, and respect the community. Going the strong arm route of calling the cops for everything will not help the cause.

One of the biggest concerns I see with larger MF units comes in the form of not having enough Cap Ex reserves to remain competitive or for that matter compliant with gov and other regs. With smaller unit buildings your costs may seem more controlled with lower amounts of cash needed.

It’s being done in the Chicago market too. Buyers are putting up full window signs that they are buying in the neighborhood and to reach out to them if interested in selling too. After speaking to another active GC and investor, about this creative advertising they told me they wouldn’t recommend it. Stating that’s a liability to their work and brings on too much attention.

One word: CREXi

I would not use those costs (one time/capital improvement) at face value. But instead would run at least 2 analyses to see how the numbers play: One with the costs included in expenses for the year Another with those costs spread out over a period of years And One with those cost removed and then added back in after the initial analysis. BC at the end of the day ur going to have your internal accounting, your investor accounting, and IRS accounting. Let me know what you come up with and ur thoughts.

I'm open to meeting up too. My background is in brokerage and Doing the BRR strategy.

I did last night. In the long run it should pay off.