All Forum Posts by: Michael J. Beasley

@Neil Schoepp thanks for the plan of action. That helps to hammer down the things I should be doing now.

Ice fishing sounds amazing! I just came from camping in the Adirondacks. People don’t realize that winter outdoor activities are often more fun than summer. Also, I’m from Schuylkill County PA. Small world!

Hey all,

I'm in the educational phase of REI. Never done a deal or bought a home (currently renting happily). Have some cash in the bank, but nothing that would impress a lender. I'm eager to learn and have a long-term perspective on what it will take to achieve financial freedom. Not looking to get rich quickly. My question is this: how do I build credibility with lenders, contractors, agents, attorneys, etc. having never done a deal? Am I getting too far ahead of myself in thinking about building a team at this early point in my progression?

@Kirk Perecich

I think that’s a question that’s on a lot of new, prospective investors’ minds. I’ve wondered the same thing. In the Midas Touch (Kiyosaki/Trump book), they clearly outlined that business is built by playing by the rules. Trying to take a shortcut only ends up putting you behind in the game and even if you “get away with it”, you stunt your growth and forgo the lessons learned through playing the game by the rules. Don’t feel bad about keeping It real 😜

@Chris Mason

Hahahahahahaha

Hey all, I'm looking into buying a 3-unit multi family home. As of right now, two of the units (a duplex) have utilities covered in their rent. It's a 2br/1bath and a 4br/1.5bath and tenants pay $650 and $550 respectively... that's right, the 4br pays $550, with gas, electric, and water included!! The listing agent said that tenant does snow removal and takes care of the property. From the photos of the place, he keeps the apartment nice and I understand he's a long time tenant. I think he has a some kids based on the photos. I'm going to look at the place tomorrow.

I could either raise the rents super high to cover my utility costs or pay to split the meters for gas and electric and have all of the tenants pay their own utilities. But I still would look to raise the rents closer to meet market demand. Would it be too much change to tell the duplex tenants "Your rent is going up... oh, and also, you're going to start paying utilities."

Any advice from savvy investors would be greatly appreciated :-)

I’m looking at properties in an area in which I don’t currently reside. On two properties, I was quoted current rates by the seller on electric, gas, and water bills. When I called the gas and electric company, they gave me significantly lower numbers. My question is: which one do I trust??!! Common sense says to trust the utility companies, but I don’t know why there’s such a huge desparity.

I’ll add piggyback onto @Aaron McCarty’s question... what’s the difference between pro forma Cap rate and Cap rate? 

P.S. Bald Guy Properties is a phenomenal name 😂😂😂

@Jonathan R McLaughlin Exactly! It makes no sense as to why they'd keep rents low intentionally. As if the tenants would vacate just because the landlord is keeping rent at market value.. 

Dude, that's so inspiring. It's insane to think of how possible it ACTUALLY is. Keep it up. I'm right behind you... ok, I'm pretty far behind you. But this little post reminded me why I'm doing this. 

I've been looking at a bunch of 2-4 units and keep seeing vacancies and tenants paying low rent... but brokers keep throwing out the the "projected income" number in my face (even when the units have been vacant for 7-8 months). I'm basing my offers on current rents (low as they may be) and for the vacancies I'm just calculating based on local comps. Not looking for any specific advice here. Just venting...