All Forum Posts by: Juan Vargas

Find out what investor's goals are to see if there is a way you could help them get there. Know that just because an investor has capital to invest, it doesn't mean he/ she is the right fit or you are the right sponsor. Genuinely find out if you can help them.

Definitely learn the legal side of raising capital. You don't have to know it all but you do have know enough. 

Above all, live and act with integrity. 

I agree @Todd Dexheimer. Even if you had 95% of your net worth in (and you somehow lost it all), if your other 5% could support your family well, you are doing extremely well. 

@Mario Ortiz Just goes to show that staying persistent pays off in the long run. Thank you for sharing your story. 

@Daniel Perez you need to find out what your business plan is for it. When does the seller want his payment in full? Within 3-5 years, 10-20 years? How many units? The reason I ask is because if he is willing to hold a full primary note you could offer more than the asking price just to get your terms. Your terms could be 0% interest or close to it with a payment in full at year 10 or so (at year 10 you refinance or sell). It's a win/win as he is getting higher than asking price and won't have to pay full capital gains taxes at once while you are getting your terms. 

Although it is extremely unlikely for larger properties, this strategy can sometimes work for the smaller mom and pop type properties but you definitely would have to provide a down payment. Just depends on the size and the seller really. 

Like Michael mentioned, capex doesn't affect NOI, it is below the line. You should value it based on the 2017 P&L, not 2016.

On point @Michael Le

@Sohrab Ansari, For a lender, I can see how having a long term lease can be both positive and negative. But I believe this is a question for @Joel Owens.

@Cathie Kovacs another option if you're not already using it is Underlayment. 

@Daniel A Lee Kim You're welcome, anytime. 

@Brian Garrett I would imagine the majority of folks are doing the same because of the many benefits, including tax advantages.