All Forum Posts by: Juan Maldonado

@Daniel Ryu, thanks Daniel. As for the deal you helped us underwrite, we are having some major issues with the owners giving us all the financials necessary to go to our lenders, but the deal is still alive.

Right across the street the new development is renting a 2/2 for $1400, they are going fully furnished and 100% student housing, however with our projected 2/1.5 rents at $925 again a huge spread and we feel comfortable we will get them after renovations.

Let's keep discussing opportunities, particularly what we spoke about a fund in Korea. I wonder if there is anyone on BP from Korea with a law back ground. That would be useful.

Sorry for the run on post, apparently the BP APP on IPhone doesn't keep the spacing. My apologies.

Spencer Keables , I am also a SLC, enthusiast as I worked there for a few years out of college and my wife has family there. This was before I had any RE experience or interest. I now work for a multifamily company so my post is based on larger properties than you mentioned. I was shocked watching a national multifamily conference from Marcus and Millichap where SLC was trading at such incredibly low cap rates. There was NYC at around 4.0% some of the other "Sexy 6" as they call them ( Boston, DC, Seattle, Los Angeles, and San Francisco.) Salt Lake City was right there at like 4.8% I almost fell out of my chair in disbelief. --------------------------------------------------- As for your 1% or 2% maybe your not looking for the right opportunity. What if you found a deal that was not at 1% but through renovation and upgrades you could release the units to meet that rule. Quick example the first deal I ever closed for my company was a 3 unit in South Side of Pittsburgh. I cold called the owner and worked the deal off market. We paid $197k when total rents were $1,400 a month. All units were 2/1's. We invested about $7,500 per unit in renovations and framed in a doorway so now the units were 3/1's. Each unit rented at $1,200 the first year and now $1,250. Purchase Price plus renovations: $219,500 or .7% based on rents at purchase. One year later monthly rents $3,600 or 1.96% almost 2%. It's basically how a house flipper purchase a house right, you negotiate based on what you currently have, but your plan and execution makes the deal OK, GOOD, or GREAT. I was in SLC for Christmas and let me tell you there is a TON of Opportunity there if you see things through a different lense. My friend was telling me he was renting a few blocks away from Desert Edge (close to 500S 500 E) a 2/1 for $650, and 4 blocks away a new class A building renting 1 Bdrms for $1,150. That's is a GIGANTIC spread, you should be able to upgrade your 2/1 with all the latest accessories and top of line finishes for about $12k per door. This 2 BDRM would rent at minimum for $1,000 (again I don't know the market, just going of past experience and feel). But it's a fair assumption assuming you invest the money on the rehab. What would happen to your ratios if rents almost doubled? As someone mentioned if anyone in SLC is interested in talking about prospecting and cold calling I am all ears, this is what we specialize in and are quite good at it. Let me tell you a lot of dilapidated 5-25 unit buildings in downtown SLC, buildings look old, just as I am sure their owners are, old and tired. I have kicked the idea with my boss about a call center, I know I can train people and get deals going quickly, if nothing we could wholesale some multis and make a quick buck. If anyone is interested let's chat.

Crystal Dugar , like many others it depends on your situation, are you looking for something passive or hands on? With the knowledge I have and I wanted to do something passive I would look for a local flipper in my area and partner up with them. But make sure that this person is brining money to the table and has skin in the game. If I wanted to do something that may not be as quick but possibly more lucrative I would flip small multi-unit properties and find 2 or 3 partners that would also bring in 100k. With 300 k you maybe be able to get into something around the 1.2 million mark. But I would make sure that all the partners agree to do 1031's with the sale proceeds. It's incredible what could happen for you after doing 3 1031's. I saw and helped my boss turn a 9 unit, 450k proceed into a 33 unit (3 properties), appraised at time of purchase for around 2MM.

Hey Brandon Whitaker , I was in your exact position three years ago. I was living in South America, my wife wanted to come back to the states and I decided I was going to learn RE. I hopped on BP trying to connect with investors and and find a mentor, I was open to relocating anywhere and pretty much intern for free. I tried sending some messages, talking to some folks on here but building trust is something that takes time and sometimes (not most BPers) are guarded people and don't really want to take someone under their wing thinking that later they may compete, at least that is the feeling I have gotten from some people in the field who fail to give any specifics and dance around questions. My solution was to switch from looking for a mentor and finding a boss. I was now looking for an entry level position, my thought was if I was hoping to trade my time to learn why not actually get paid for my time, after all that's what most of us do 9-5, trade our time for money. When I changed from looking for a mentor to looking for a job in RE, it made things a bit easier, in the end I got the same thing, all the education I wanted and got paid for it. Now I have the knowledge and skill to be dangerous and successful on my own, but I am happy where our company is and excited for the future. Maybe you could have the same luck. Probably not what you were looking for but its the way I solved my " RE Education" component. If you can narrow down what type of investing you want to get into, I will help you brain storm how to maybe connect with some people in that field. Are you hoping to be a house flipper, buy and hold, finance (debt/equity), there's a ton of things.

@Guy Gimenez, look forward to meeting you there. Thank you for the heads up!

look forward to talking @Tom Lafferty

@Tom Lafferty, we have been pretty active in SA over the last 10 months closing on about 350 units. give me a shout if you want to discuss.

@Nick B., thank you for keeping me in mind.

Sorry for the run on post. I had spaced it out on my phone but seems that it just eliminated tha spaces between paragraphs.

John Hyatt , first of all congratulations on getting the ball rolling. Not only do you have a plan but you are taking action. As many have said, it is these initial door knocks and calls that will help you get comfortable and much more importantly give you experience of over coming all sorts of objection/rejection. The first time someone says (xyz) and your stumped you may mumble gibberish, be unsure on what to say, run back to your car embarrassed. Then you will think about what your response should be, maybe get advice from Bigger Pockets or colleagues in your area. The second time someone says (xyz) you will now confidently know what to say, and your now bold resolute answer will give your seller comfort that he's dealing with a professional. The thing is that you don't get to learn what people objections and thoughts are unless your out there doing what you are doing. Again just the fact that you are door knocking I think shows more determination and courage than 95% of the population. You should listen to the folks recommending getting a better list, look up your google your county and foreclose notices. I did this recently and can see the notices for everyone going to foreclosure, with court dates 3+ months out. It's free!! Always keep sharpening your ax while chopping wood, but know that no matter how sharp your ax is, it requires you to go into the woods. FYI, the president of the company I work for built a 600 unit portfolio in Pittsburgh, simply by driving for dollars and cold calling. No buying list, no mail, no mls listings, just hustling and getting on the phone with the property owners directly. Yeah, it took him 10 years, but the guy is 34 today. He taught me and my first year I purchased 39 units for him doing the same thing. Zero real estate experience but tons of calls and hustle. You are on the right path. Happy Sunday.