All Forum Posts by: Jay O.

Happy New Year once again everyone. Hope everyone had a safe and great one. Wishing every one an even better year in REI and every other goal you plan to acheive in 2014.

Just wanted to know how do these numbers look for a 8 unit Multifamily, BP Guys/Gals? Property is in the Southeast Market. I'll be putting down 30%. Possibly my first Multifamily purchase! Let me know before I sign....The dotted line! Thanks a million!. :)

Cost Analysis Performed as Rental Property

$400K

In:Southeast Market

8 Unit Multifamily

Completely Remodeled, Renovated and Updated

Conveniently located to restaurants, downtown, shopping, etc....

Additional Income from Coin-Operated Laundry

Corner Lot, Great Frontage

Rent - $68,940.00

Out:
(Annual) Actual Taxes - $3,651.00
(Annual) Estimated Insurance - $2,280.00
(Annual) Property management (optional) - $5,515.20
(Annual) Misc -$10,956.00

Net:$46,537.80

Earn:
Total yearly equates to -$46,537.80

CR: 12%

• Net Operating Income

  $45,421

@Bill Gulley

Yes Bill. Jerry did make some sincere points. All the properties are in the same lenders area.

One lender managing the proposed transaction, coordinating requirements on all the properties, appraisals, inspections, engineer reports if any, title work, escrows, insurance and closing requirements, sounds incredibly efficient to me. I believe time is always one of our greatest assets, especially when dealing with such a great amount of paperwork. Excellent point Bill.

Negotiate with the title and settlement agent on a better deal is definitely now on my must do list. Every dollar counts. Can't forget that.

Is it better setting all the properties up under one entity? Haven't established one just yet. Was going to wait till I acquired more than six properties to do so. Already set up for an LLC. Paperwork will be ready shortly and then submitted when completed and ready to go after my sixth property purchase, unless now would be a better time. Thoughts? Actually was just going under my own name. Whats better? I hear tax differences were no different. At least for now, until I can purchase additional properties. One closing for all the properties sounds great. Release fee for each property was an excellent must do. Excellent note on that one Bill. Incredible thanks again Bill! Writing all of this down immediately.

@Ed Wood

Incredible thanks Ed. Will definitely stay under the 4 unit mark.

Income and asset documentation only 1 time sounds great to me. Good point so far. Will definitely look over all the Rehab items, the properties will require based now on all the other items you mentioned. Excellent points. Know I will also have to bump up my reserves a bit just in case. Will start comparing the quotes then on required insurance necessary. Thanks again Ed. Greatly appreciate it!

@Jerry W

Thanks. Great information so far. Really appreciate your sincerity too. I was actually advised, when I attain more than 5-6 properties or more, I should then start buying under my own entity. For now Im going under self. Until I am advised otherwise. I have just a bit of time more before a final decision is made to purchase these properties. Thanks again.

@ Raymond B

Thanks a million!

Hello everyone.

Thoughts on structuring this deal. What to look for? What to be aware of? Simplest way to put it together. Suggested steps to take or a great general outline from beginning to end. Advice from anyone who knows or has purchased Multiple Properties at once. Advantages/Disadvantages if any.

Going to be the first Multifamily purchase. It would be working with one lender, or possibly two. Purchasing all properties at the same time. Properties reside in different locations within the same area.

Working on structuring a Multi-Property deal, consisting of Multifamily units on the East Coast. Total of 4 Multifamily units. Some rehab, some in, move in condition. Would like to know also if one lender or a lender for each property works better. Just wanted to ask the incredible experienced BP community the best way to execute such a deal. Maybe also run some numbers for me. Putting 25% down on each property. Putting aside reserves for each property also. As far as insurance goes, get a Individual or Umbrella policy? Efficient and cost effective strategy. Hope Ive given enough details. I'm sure you guys/gals understand the kind of deal I'm asking advice about the best and safest way to put it all together. Thanks everyone. Looking forward to hearing from you all.

Gratefully,

Jay

Incredible info Jon on the whole ARV gig and everything else mentioned.

Great breakdown too. Appreciate the wisdom and guidance.

Gratefully,

Jay

Hello Ken.

Thanks for the news update and link. Great stuff. Know quite a bit about Blackstone. Hopefully this will work out for some of us. Have a good one.

Hello Robbie.

I also ran into this issue myself in researching potential properties to purchase.

I believe Mark not only makes an incredibly strong point, but in my recent research on Fannie/Freddie and anything to do with HUD Foreclosures, there is definitely a 15 day waiting period. It's yes, also the Law.

Normally, a notice should be posted for when investors can bid or make a purchase on these types of properties in the properties listing.

Here is a direct link for any other questions based on these types of properties I and possibly you may find helpful.

http://portal.hud.gov/hudportal/HUD

Hello Bill.

Wow! Im incredibly blown away by your words of wisdom. I am also very grateful to you for learning something that will be always important to me in the future, in matters of dealing with integrity and the society in which we live in. Thanks for helping me learn a lot more when it comes down to our moral compass and how we see and respond to the world around us. Your right. There was only one person.

Gratefully,

Jay