All Forum Posts by: Joseph Firmin

Typically, an LOI will come from the buyer, not too many buyer's agents involved in commercial real estate deals where an LOI would be used. If it is your first deal, I'd say ask for advice or a template of an LOI from an investor you know or trust, or look for one here or elsewhere online. Make sure you've read well the steps involved in purchasing commercial real estate and follow them.

A hometown does give you a competitive advantage to being local and knowing the turf. There are deals in any market, many times you have to make the deal (renting by the room or AirBnB vs. long term rental), so if you want to invest locally, figure out what would work for your market then go learn that niche and crush it.

The lien will need to be satisfied prior to any disposal of the property. If your client wants to sell their house and say, owes someone $2,000 via a lien, he/she will need to pay the person owed that $2,000 prior to selling his/her house. The title company will catch this and the closing will not proceed until this lien is satisfied. 

Here are a few tips: 1) Put additional maintenance into your numbers, 2) ensure you have enough parking around the building (old buildings did not assume a 1BR apartment might have 2 cars), 3) You may want to get a survey to see exactly where your property lines are as this can be helpful in the future if you want to add units or expand.

Check out Brian Murray's Crushing it in Apartments and Commercial Real Estate, Ken McElroy's ABC's of Real Estate Investing, Wheelbarrow Profits by Jake & Gino, Multi-Family Millions by David Lindahl - those should give you what you need!

If it is a small multifamily (<5 units) then get your inspection scheduled and financing in order. Assuming you have an agent, they should walk you through this... If this is a commercial deal, then you need to finalize the contract, ensure you have all due diligence documents from the seller prior to initiating the due diligence period. Then get your inspection, finalize financing, appraisal, etc.

Definitely raise the rent to above the others in the neighborhood, there is more risk here with additional residents in the house, HOA, etc. Have the roommates complete applications and be upfront about them needing to be on the lease, if they aren't it will be breach of contract and she could be evicted. The small infractions are just that, small. I'd renew if you get a new lease with all residents listed and additional rent. I'd just be upfront with her. Don't sugarcoat anything.

Are you looking for a company to do it for you or a portal that your residents can enter payments into? If a portal - check out Cozy. 

Congrats @Devin Williams!  Well done! Stay positive and find the deal, the money can be found for a good deal.

I cannot help on insurance agent for KS, but wanted to comment on the high deductibles piece. High deductibles are one of the reasons your premiums are lower and also prevent you from making a claim that is unnecessary. Insurance is really priced for catastrophic events and costs, not for things <$10,000, unlike Health Insurance - which people use for small stuff like prescriptions and doctor visits. Insurance companies think similarly which is why it is difficult to switch insurance companies after you've made a claim for something that wasn't a total loss. I'm not saying this is correct, just reality.