All Forum Posts by: Ken Martin

@Charles Seaman it will be more minor renovations... interior and exterior. 

Hi BP community, I'm currently in the inspection period on a small multifamily property, and i'm finding that many of the leases are on a month to month basis, some don't have security deposits, and one tenant is actually a month or two behind on payments (the owner is very old and is basically mismanaging the building). This is a building that I will be re-positioning, so it's not a terrible thing that some of the tenants are on a month to month basis, most of them is a little concerning. Also, how should I treat the past due tenant, and the lack of security deposit on some units? Once renovated, there could be some real upside to this property, so it isn't something I want to walk away from completely. 

@Luke Teson just to circle back, it sounds like you were correct. Just one target market on Costar is a little over $400. That increases as you add other markets, or states as a whole. The whole US is the $1,500 I was quoted. 

@Luke Teson I looked into costar and think it was a lot pricier than $400/month

Hi BP community. I have been trying to find a quality list of multi-family property owners in my target markets (mostly mid-west cities). I have used Listsource, but when I filter for "residential multi-family" it only produces one property. If I expand the criteria to include "residential apartment" I get a lot more results, but they all appear to be very low quality, and it's unclear if this is the owner of the building, or just someone living in an individual unit. I have had the same issues when using a direct mailing source like REIPro that also pulls lists. What is the best way to get a quality mailing list for multi-family apartment building owners!? Any tips or advice would be greatly appreciated. 

Hi BP community. I'm currently evaluating new target markets for investing in multi-family properties. Does anyone have a spreadsheet or template they use to rank different factors in a target market / city?

I am focusing on population growth, job growth / employment rate, Supply growth, vacancy rates, rent growth, and cap rates. Are there any other factors that I should be including? Are there any one stop sources to pull / analyze all this info? Some have mentioned Axiometrics? 

Thanks for the help!

I just listened to a podcast with the founder of bootstraplegal.com @Amy Wan , i haven't used it yet, but it sounds like a cheaper alternative to get some legal work done for smaller deals. 

I am curious to hear what kind of feedback you get on 506(b) details. I have been looking for more clarity here myself, particularly around raising money from friends and family. 

Hey @ryancarroll , did you ever end up getting a response on this? i'm currently looking to buy a property, and am trying to find a structure where the current owner can retain some ownership percentage (something like 20%) to participate in future cashflow / upside. Did you end up working something out on this property?

@Tom S. Thanks for the response. Is there a way to accomplish a similar structure with the seller retaining a % ownership after the title is transferred, either on the title or through a LLC, so he can participate in any future cashflow / sale. Maybe the cashflow from the seller financing will be enough, but if it's not / or he's not willing to accept less than 20% on a down payment, I would love to have an alternative option to present where he keeps a piece of any upside.

BP community! I've been in casual discussions on a multi-family property in SW Michigan. The owner is 70, has owned the building forever, has been managing it himself, and sounds like he may be ready to sell the property. I want to suggest a few different monetization options to him, and could use some suggestions. Say the property is $1M, is there a structure where the seller can retain some small percentage (10-20%) of the equity/upside? Whether it's through a bank, or through some type of seller financing? How would that work? Perhaps he could buy part of the LLC, or maybe lower the sale price? The more detail / examples the better!

Also, if the seller owns the property in a LLC and is going to retain some percentage of the equity, should I be trying to buy the LLC instead of the property to avoid a tax jump?