All Forum Posts by: Joel Florek

@Scott RosengrantsThanks for the comment! It certainly doesn't come with its negative comments and feedback from people but I always try to make sure I filter out those who are just talking vs. those that have practical experience to back their statements. Anyone who does have the experience says go for it and keep working hard to build the business! 

@Joe SplitrockCurrently I am managing the leases but now have a maintenance manager that was in place at the 16 unit when I purchased it. I will be hiring a leasing agent in the near future to take that portion over. Just need to get my systems in place to make the on boarding process smooth. 

I do most maintenance work myself that is majors, but I will begin to outsource that as well now that I have sufficient budgets for that. 

All my calcs that I posted in replies on this thread are for outsourcing. If I decide to take on any work myself then its just a bonus. 

@Tony HoCurrently I have $650k in loans with my lender and another $135k privately. I have my commercial loans at 4.85% for the large loan and 5.25% for my smaller loan on the 4 unit. 

I am fortunate to have a very good day job but live very frugally and am in a low cost of living area. My monthly personal expenses are $1000 to $1500 depending on any bigger purchases I need to make. Needless to say I save every dime that I can and turn that around into my deals. 

@Trey BrooksWhen people ask me that question I like to simply reply by saying that I just want to get back on the water sailing.

Really, what it comes down to is I want a life that I get to choose my rules. If I want to go sailboat racing for a week, cruise the Caribbean for a few months, or do an Atlantic crossing I want that freedom. I actually want to leave on a circumnavigation before I am 30.

But beyond that I want to know that I can provide for my extended family, give back to the schools which have helped me to be who I am, and help influence positive change in the communities I care about.

Needless to say I need a lot of money and cant be tied to a job the rest of my life(for now my job is helping me to get off the ground and I actually do enjoy what I do). To achieve everything I need to own assets.

Since I don't have a trust fund I need to own all or part of a business. Real estate is something I know from helping my parents flip houses as a kid. But to achieve the bigger goals I have I looked to the people who are already doing that. They all own as a part of their asset portfolio in big multi family or commercial real estate. So rather then try to invent some new product I am sticking to my roots for now and trying to build a multi family and commercial real estate portfolio.

@Dennis P.I posted this on a reply to another member but ill send it to you as well.

For me it comes back the big "why" statement. Why am I investing in real estate? Why am I investing in this town? Why am I investing in multi family properties? Why have I chosen these particular properties? And why am I the guy that should own this particular portfolio?

I could write pages for all these and have addressed these to stakeholders. My personal mission and vision is what keeps me focused every day. So I challenge you to ask your why questions and be sure you understand them with 100% certainty. This is what other investors, non believers, and lenders will be asking you(or variations of the questions). This is how you will defend, and convince them your the guy!

Good luck and let me know if there is ever any way I can help!

@Gino BarbaroI appreciate the encouragement. Its funny how things have worked out through this process. 8 months ago I had a goal of hitting 20 units by age 25. Obviously I did much better on my timeline then previously anticipated.

I have my list of properties to go find and meet the owners on so its back to the hunt!

Development/major renovations on properties is something I am very interested in. If you have experience or know someone who might be wiling to give some tips/pointers on a phone call it would be a huge help as I try to fill up the pipeline!

@Alsee MccrayThanks and make sure you keep up the effort. Its easy to go through life in fits and starts. But those who are consistently applying pressure end up being able to achieve success.

By the way, if you like hockey my brother plays for the Bridgeport sound tigers. Look for FLOREK on the jersey! He is getting into SFRs in our hometown of Marquette MI.

@Hubert WashingtonThanks for the kind words. For me it comes back the big "why" statement. Why am I investing in real estate? Why am I investing in this town? Why am I investing in multi family properties? Why have I chosen these particular properties? And why am I the guy that should own this particular portfolio?

I could write pages for all these and have addressed these to stakeholders. My personal mission and vision is what keeps me focused every day. So I challenge you to ask your why questions and be sure you understand them with 100% certainty. This is what other investors, non believers, and lenders will be asking you(or variations of the questions).

Good luck and let me know if there is ever any way I can help!

@Alsee MccrayMy terms are as follows

Bank:$550k

Am: 20yr

Rate: 4.85%

Balloon: 5

Owner: $110k

Am; 10yr

Rate: 2%

Balloon: 3 year

To get here I was working with the bank who has held this property since its construction in the 90s. I then competed the loan terms and ended up staying with the bank I worked with on my first 4 unit. Really a great experience all around!

@Eric M.@David Huynh

Numbers on the 16 unit.

2015 rents: $116,000(I have budgeted at $109,000)

2015 taxes: $17,500

Insurance: $4,000

Snow, trash, maintenance manager primary electric and irrigation water: $5,000

Misc Maintenance: $6,000

Cap X: $6,500

Leasing Agent: $6,500(this will be a scaling structure where most of the payout comes from reaching higher occupancy. Therefore only $3,000 comes out as expense if revenue is at or under the $109k revenue)

Total Expenses: $42k

NOI: $67k

Financing Expenses: $55k

Income before taxes of $12k.

Note that for now I am acting as the leasing agent until a portion of my debt gets refinanced in 3 years adding $6000 more to my cash flow. I will also take on some of the repair expenses that have previously been hired out to sub contractors protect my cash flow over the next 3 years.