All Forum Posts by: Levi T.

Don't worry about an LLC till you have something under contract. There is a lot of ways to find deals, it all depends on your comfort with risk, condition of property, and how much work you want to put into getting a deal. MLS and pocket listings will produce much lower returns, but it's easy picking. Off market deals, signs, and more questionable proprieties can product a much high return, but there's a lot of risk, work, and experience required to make it happen. The deference between a good or great deal is how much cash down you have to put in to make a rate of return expect. The ultimate goal is to make a deal so good you don't need any money to buy it or rehab the property to reach your exit value or rents. There's a lot of ways to go about that.

If it's more a concern about the funds till you pull the trigger. You can setup an interest account and have a commitment to return it in x time if not executed. You don't find a property you where looking for you would return the money type thins, or you get a written commitment from investors that you exercise when ready. If you go with the 2nd, you should get commitments from more investors than you need, not all will honor their commitments. Your going to need the hire an attorney anyways to set all this up correctly for you the first few times.

I'm not an attorney; Have an attorney form a LLC that will hold the property and give a percent of ownership to each investor based on the amount the contribute to the total investment, or whatever you agree on. Option B; go with a loan from them that you pay a flat interest rate on, for example 10%, they can have 2nd position on the lean. This somewhat secures their investment with the property and let's you pay them off. If you use a BRRR style method, you should be able to refinance in a few months and remove them from the loan payment, thus capturing more earning for yourself.

No book recommendations, but happy to talk on it, pm me whenever. It's all about cap rate in terms of value with apartments, so if rents go down the value of the building sinks with it, likewise if it goes up. You really want to find a property that is in an A-B area that is off market and lacking repairs. This will let you get it at a sub market value, then with improvements rent it higher. Just don't base your buy price off the higher rents, make sure you cashflow on the lower rents "as-is" type deal. Seller should take a loss as they want out of their bad investment, thus why they have put off repairs, no money. I can't tell you how many P&Ls I've looked at, where the owner "forgot" to include utilities, as most building don't have sub-metering and include that cost in the rents. Good way to get burned as all building have one meter for water, and some have electric. Most include water, sewer, and trash removal. Maybe not the last one if your in a duplex or something, but remember it has one meter for water, and likely electric for the hallways, so that's cost. Always call the city and check the water bill balance before closing, and get the average. I have a 9 unit building that's 1/2 the cost for water and sewer than a 4 unit building in another city, so always check it before making an offer. Repairs run in the 8.4% range, vacancy is much lower, but for a sub 4 unit I would stick with 10%. You likely have a landlord tax, it's normally not much, but good to check with the city. 10/10/10 is safe. Buildings are less isolated, gossip and hive like mentality with renters. So if you do one a favor, they all want that favor as well, and will call. Good luck!

I would, only if I heavily discounted for maintenance and repair of said pool. I would stress on the seller than I would need huge discount just for having to deal with it, then find middle ground. After closing, cover the pool and leave it covered. If renting, and a tenant wants to open the pool. I would require a large deposit and charge for upkeep so you know is being done right.

^ this. I'm in NOVA as well, prices are hot. So your seeing a lot of people jump into construction as land has been a better option as of late, commercial follows the roofs, so I think we can expect a lot of commercial development to follow. At some point rates will rise, but this won't happen till everyone is sure the housing market has a strong footing. That will be the 3rd down cycle when investors loans come due and they find their rates have doubled. Then thing will slow and we will start moving into the next wave as another housing shortage happens, which is what is happening now.

With our leases for SFH; cleaning gutters or cutting grass falls to the tenant, just because they rented from you does not mean it's a full service rental where you cut their grass, clean gutter, or change lightbulbs. We operate in the realm of its their responsibility, but we are happy to do it for them, at a price. We charge $35 to call vendors and book the service. We will pay the bill the apply the amount to the tenants account along with our fee.

Ask for the last 2 years of tax filing to check income.

What Paul Birkett said. You need to try and lock it down before it hits the market. You won't have to pay the agent their fee, plus you will likely get it a lot cheaper vs competing with other bidders.

How does bandit signed work compared to letters?