All Forum Posts by: Michael K Gallagher

Hey @David Torreggiani at first glance it seems that you accounted for your expenses in a conservative way which is how I personally like to do it. First question I'd have is does it meet your criteria? for my market and myself personally the COC return is a bit low, but the pure cashflow is over $100 for the 1 unit, so to me thats a slam dunk. The only thing I'd suggest checking into would be the PM amount, my market is usually in the 9-10% range but if you were quoted 8% then stick with that.

I may have missed it so I did not see what market you are in, but judging by the price to rent ratio I'm thinking its somewhere in my midwest neck of the woods. And for that kind of a market the numbers seem to pass my gut check.  

The only other thing I like to ask myself is....does this property have any other exit strategies than simply a long term rental...in other words if you needed to could you medium or short term rent it? Does it have proximity to land marks that will appreciate the values in the long term 10-20 year view? Those in my mind are the questions that matter more than the initial cashflow and COC in the first 3 years. But thats just my opinion.

Hey @Ray Suerto congrats on taking the action to get licensed thats a big hurdle and you should for sure be proud of that!  If you are on bigger pockets that tells me you are interested in investing, is that where you plan to focus your efforts in your agent business?  If so I have to say BP and the forums here has been by far the #1 thing that's grown my business over the past year of me being licensed. 

Regardless its not so much what you do but, as they say, but "that you do it"...meaning whatever it is that you decide to do plan to do it consistently for several months and track it prior to starting something else.  Me for example...my biggest issue I still have is my tendency to start thinking about all the things I could or should be doing...especially when you are in the learning phase and there is so much info coming at you from podcasts and books etc.  Its a battle every day to stay on track and stay consistent.   

If you have not read SOLD yet by David Greene, its worth it and honestly its better than anything Garry Keller has written on the topic of being an agent, and his books in my mind were the industry benchmark for agents prior to Davids book coming along and blowing all the competition out of the water.  

I realize I just gave you a bunch of general non specific items to address your question so in the interest of giving you some ideas...here's what has been the best lead gen sources for me of the past year....

- Networking with like minded agents and investors in my area

- posting consistently on these forums.

- I signed up for the BP featured agent program in one of the markets I serve, I closed 1 deal and it paid for the year of that.

- Tik Tok...I've had two videos do over 220K in views on tik tok and have had several inquiries/connections from there.

- Leasing...I've been doing some leasing services for investors in my area, not PM but just the front end leasing.  This is by no means a big money maker for me but it keeps my finger on the heartbeat of the rental rates in the areas I operate and keeps me on the ground in some very specific areas.  Additionally it lets me build a relationship with some repeat investors who may have purchased through another agent...but to be honest I've stolen some business from those initial agents by helping the investor place tenants and being a resource on actually operating a property.  

Lastly I will say its a long game, if you take small daily action it will happen.  Keep with it!

Congrats @Weston Glover on the first deal, was this strictly a deal you wholesaled?

I'd love to be able to print off a nice PDF report of the Rental estimator, the current tool is fantastic and I use it daily, but anytime I need to defend my rental numbers I need to take a screen shot or something similar.  I'd love to be able to print off a report similar to the calculators and put my logo on it etc.  (Unless this is already a thing and I'm just an idiot which is totally possible)

Alternatively in regards to the requests for a calculator for a larger investment or alternative investments...I'm not sure if it would be possible but ROI-Muse is what I use for my bigger commercial deals and lease analysis, its fantastic...perhaps there is a way to work with them and get access to ROI-Muse through BP? Just a thought, instead of re-inventing the wheel.

Hey @John Vitta I have not seen too many successful flips in my area of central OH, especially at that price point.  Case in point there is a duplex being converted to condos next door to me here in Cbus that has been in the works since we moved in during the fall of 2020.  still not done, and has been through about two different investors since we've moved here.  

You would have more luck in the Dayton Market at that price point I think overall, but the issue there is that the underlying economics of the city really do not bode well for long term appreciation of any kind, so it would be a market in my mind with very littler room for error.  

I have seen some success in the outlying areas of Cbus, think Pickerington, Delaware, Marysville.

Hey BP Fam, so in the interest of putting our goals out into the world, one of my long time goals and hopefully reality sooner rather than later is to build and develop the world's most elite training facility and arena purpose built for figure skating, more specifically syncro.  The general idea is that there are plenty of arenas and facilities that cater to both hockey and figure skating, but usually the hockey ends up overshadowing and pushing out the figure skating on ice time etc...

So in the interest of niches make riches....it will be an arena with no hockey (I'm playing with the idea of allowing hockey on an outdoor skating surface...think OG pond hockey with trash cans)

All that to ask and put out there into the BP universe if anyone has any experience developing ice rinks, refurbishing them, or operating them, I'd love to connect and learn more about the process and share the vision in more detail. 

cheers! 

hey @Natalie Bender My first instinct is to suggest that although you've mentioned the most popular or well known ones, there are many support roles within those offices.  If your skills lend themselves to support admin work, that can often be done remotely, or on off ours. There are many roles within commercial brokerages specifically relating to project management,  or data analytics if that suits your likes and desires.  

Otherwise there is staging companies, moving companies, investor relations, acquisitions specialists for real estate funds.  Also coming to mind would be something in perhaps CPA firm or Lawyers office who specialize in real estate....it will really come down to what they always talk about feeling light vs heavy.

Damn! this looks amazing congrats on the deal!  That pool looks like its all you need for advertising!

@Matt Lyons congrats on the move and portfolio!  I lived in Clinton IA for my first job out of college, always loved that area!  wish I knew what I know now about real estate investing when I lived there.  

Hey @Raymond Macasaet that is a fantastic problem to have...I don't operate in California but as far as how much you can "legally" increase the rents its usually a quick google search to determine if your area is rent controlled or has any local ordinances.  

If you are keeping the same residents and want them on a new lease, make sure you give proper notice of rent increase, (in my market its 30 days for a mtm tenant and 60 if they are on a lease) and a good strategy that I got from these forums is to increase it the most for a Month to month arrangement, and to increase it less for renewed lease.  

If you are going to put it back on the market, I always like to try and push the rental amount as high as I can, even above current market just to see what interest I get, and if it ends up being too high the market will tell me that and I'll simply start lowering the price...but to me its worth trying to push that number at least for a couple weeks to see how it goes.