All Forum Posts by: Mateusz Prawdzik

@Guy Azta So what you are saying is that you wouldn't own more than 1 unit buildings(SFRs) unless there is a PM in place? Out of your experience, how much money would you allocate per unit for a lower-middle class unit that will be renting for around 1500? I want to see where my budgets should be on a per unit basis. Should I get down to what's behind the walls or should I just stick to cosmetic stuff if everything is working fine?

@Oleg Shalumov I don't, my financial analyst does. He has access to websites that I don't, so I don't know. He does all the work for my cash flow models and pro formas and puts together packages and lets me know if the rental makes sense based on market study of the area.  

@Andrew Namkoong I really need some light shed on this as well because I am going to start to purchase buy and holds and want to know what I should do as far as taxes go and such. Is it beneficial to form an LLC for the property? What if there is 2 people involved? What if the Equity splits are different at given time? Is it possible to take out a commercial loan under your own name anyways?

@Natalie Kolodij 

@Ben Smith Is this for a rental? I think Demographics are important for sure, average salary, average AMOUNT people spend on rent per month from their paycheck, average age group, Average credit scores, Average $/sqft, Average Vacancy Rate, Average Rent roll increase (Annually) over a course of 5,10,20 years, there are so many important things to look at when it comes to market study.

Hey guys, I am looking to purchase a 7 unit SEMI-turn key property in North Jersey. 2 of the tenants are getting evicted and those units (as well as all the other units ) need work done to them.

I am looking for a property manager in the Bergen County area is reputable and highly recommended by you guys in the North Jersey area. I am a rehabber/developer jumping into the buy and hold game for the first time and I can't afford to manage my own properties and manage 7 flips that I have going on (soon to be 9).. I also don't want to deal with any headache as I know many cause problems and don't have good screening methods and what not, if you guys can point me in the right direction, that would be truly awesome. 

With that being said, I have a question in regard to the PM and the vacant units. If the units are delivered vacant, fixing the units will come out of my pocket but the PM will be able to take care of it correct? Would it be able to compare prices between one of my guys to come and do the work and the quote that the PM gives me? Does the PM usually know what needs to be done and what doesn't need to be done to get the unit back into action and fully rented?

Sorry for the bombardment of the questions, but if you guys have any questions about rehabbing or the construction process, I can help you out to the best of my ability with that aspect as that is my expertise. 

Hey Guys, I will probably be bombarding these forums with a million of my questions as I am looking to start getting some buy and hold properties from a couple that is wanting to start deloading their portfolio as one of them passed away. Someone's lose is another person's gain I guess.... With that being said...

This 7 unit that I am potentially getting is 2 buildings..  but the tax record says "5-9 Main St" does that mean I could get 1 SINGLE loan on the property or do I have to get 2?

Next question, Commercial lenders? What are typical rates and time frames for the loans? Should I stick with someone local or anyone that has experience will do?

3. What are some things that I will require to get the loan? I have money already lined up if the deal goes through, but this isn't my money it would be another investors that he would be getting a portion of the rent roll every month for. 

This question is more for the property management side....

1.Out of the 7 units, 2 are getting evicted and will probably be delivered vacant but the units need work to be re-rented... With that being said, if I get a property manager (which I am 100%) is it my responsibility to fix and re-rent the units or the PM's? 

2. A follow up question to that one is... Screening... How do I make sure that the PM that I choose is doing the right type of screening and what kind of requirements do you guys recommend having? 

Sorry for the crazy amount of questions... but I am mainly a rehabber/developer so my expertise lies in those fields... Like when I went to check out these units, I automatically knew what it would cost and what I needed to do to fix them. I just don't know how to deal with tenants and doing the actual HOLDING part. I need to find a good PM because I have heard that most of them are ABSOLUTELY TERRIBLE and I can't afford to devote anytime to BS when I am managing 9 flips ... Just cant

In turn, if anyone has any questions about flipping or rehabbing and construction, please let me know. I would love to help out 

Thanks again

@Andrew Campbell Would you recommend staying with local underwriters and commercial lenders? Or can I get assistance from someone that is in another state to help me see where my head is at on a deal? I was also wondering, the property that I am looking to purchase has 2 buildings... one is 3 units and one is 4 units... There are on the tax record together "60-65", does that mean I could take out a single loan for both the properties? Or does that mean I would have to take out separate loans for both. Please let me know. 

I am new to buy and hold investing and want to learn as much as I can about it before I jump in feet first. I am mainly a developer and rehabber, so I know the construction process and I know what costs what to fix but when it comes to taking out commercial loans and buy and holds... I am not totally educated on the matter. I have my pro forma and my cash flow model ready and the numbers work and make sense for the price that I want to purchase at, I just need to figure out more about the lending process and how it would work, working with partners.

@Brian Burke Hey, nice post. Do you have any commercial lenders that I can talk to about getting a loan for a 7 unit that I am looking to purchase in North Jersey? Do you recommend staying local or any commercial loan officer would be able to help? Please let me know Thanks

Hey Guys, I usually never start discussions only respond to current ones, but this is the first in a long time. Why? I am looking to start getting into buy and holds and am looking to purchase a 7 unit in Garfield, NJ. I am in need of a property manager or a couple of suggestions so I can call and do a quick interview to see if I would potentially be interested in doing business with them. The property isn't in the best area of Garfield but it's not a war zone because the properties adjacent to this one are newly renovated and look awesome, it's just this property and maybe one or two more that have been neglected.

Along with the suggestions for some property Managers, I would also like to ask some questions about buying and rerenting. I am looking to purchase the property after 2 tenants get evicted (both section 8s) and the units that they are living in are not in the best shape and I would like them to be renovated. Being a flipper and developer, I know what it's going to cost to do a CHEAP QUALITY look to the place to potentially make the renting quality x10 better. Now if I find a property manager, are they responsible for getting the place fixed up and ready to rent or do I have to do that and then they take care of everything else? I don't want to finish the house like as if I was doing a flip which I am doing full-time so I don't really have to do this one myself (as I doing 9 properties right now and can't be bothered with 1 unit). Is that the responsibility of the property manager?

Next question, quick one. On a 4-unit, there was 5 meters, what is the extra meter for? Is it for the hallway light and the basement light? I was wondering because there is only 4 boxes in the basement.

3. What are some preliminary things that I should look out for from a Property Manager? Other than vibes and the type of personality they have, is there like specific questions to ask them to test their abilities?

4. How is rent usually collected nowadays? Electronically? Cash? Check? Is this determinate to the property manager?

5. What are rates right now for a 7 unit in the same location? 10%? I am doing all my math on 10%, which I think is the worst case, but what is the standard right now?

6. What are somethings that I should watch out for from the property manager that tells that they are trying to screw me? How should I avoid these?

Sorry for asking so many questions, but I think that I will have more once these are answered. In return, if anyone has any questions about flipping or developing or the construction process... please ask away, I am way more knowledgeable on the flipping side and what is a good investment and bad investment in the certain neighborhoods. 

Hey Guys, I usually never start discussions only respond to current ones, but this is the first in a long time. Why? I am looking to start getting into buy and holds and am looking to purchase a 7 unit in Garfield, NJ. I am in need of a property manager or a couple of suggestions so I can call and do a quick interview to see if I would potentially be interested in doing business with them. The property isn't in the best area of Garfield but it's not a war zone because the properties adjacent to this one are newly renovated and look awesome, it's just this property and maybe one or two more that have been neglected. 

Along with the suggestions for some property Managers, I would also like to ask some questions about buying and rerenting. I am looking to purchase the property after 2 tenants get evicted (both section 8s) and the units that they are living in are not in the best shape and I would like them to be renovated. Being a flipper and developer, I know what it's going to cost to do a CHEAP QUALITY look to the place to potentially make the renting quality x10 better. Now if I find a property manager, are they responsible for getting the place fixed up and ready to rent or do I have to do that and then they take care of everything else? I don't want to finish the house like as if I was doing a flip which I am doing full-time so I don't really have to do this one myself (as I doing 9 properties right now and can't be bothered with 1 unit). Is that the responsibility of the property manager?

Next question, quick one. On a 4-unit, there was 5 meters, what is the extra meter for? Is it for the hallway light and the basement light? I was wondering because there is only 4 boxes in the basement.

3. What are some preliminary things that I should look out for from a Property Manager? Other than vibes and the type of personality they have, is there like specific questions to ask them to test their abilities?

4. How is rent usually collected nowadays? Electronically? Cash? Check? Is this determinate to the property manager?

5. What are rates right now for a 7 unit in the same location? 10%? I am doing all my math on 10%, which I think is the worst case, but what is the standard right now?

6. What are somethings that I should watch out for from the property manager that tells that they are trying to screw me? How should I avoid these?

Sorry for asking so many questions, but I think that I will have more once these are answered. In return, if anyone has any questions about flipping or developing or the construction process... please ask away, I am way more knowledgeable on the flipping side and what is a good investment and bad investment in the certain neighborhoods.