All Forum Posts by: Philip Williams

@Brie SchmidtYeah the seller is financing us on this deal and he wanted to change the date so I was like sigh I guess lol. I suppose with the number of closing I have scheduled so close I was bound to miss some other activities!

@Joshua DorkinOh i'm way ahead of you i've listened to all of them twice already lol. I tried downloading a couple new real estate podcasts and just wasn't the same you guys are the best. Quick question is there another bigger pockets summit planned anytime soon?

@Account Closed  Thanks tim I am sure I will need a little bit of luck! @Joshua Dorkin Hey thanks I hope it turns out great, so I've finally caught up on all the podcast it only took me like four weeks any chance I can convince you and brandon to put out a couple a day? What am I going to do on my drives now!

A little in Chicago, mostly in Rockford IL which is about 90 miles away from the city. Crystal lake is too expensive the rents don't really justify the prices. I'll be taking a brief break from buying anything but after that I may explore the Chicago market more, or perhaps Milwaukee Wi I have been hearing great things about their market!

Thanks @Tim Leslie I had to miss the Chicago rea meeting last night over this which sucks would have loved to share the story with all of them! How the market in mn?

So my last post 7 building 20 units 18 months got a ton on support from the community. I didn't want to write what the actual numbers were until each closing actually went through. The first was yesterday on the six unit so i'll try and put as many details into this post as I can. Regardless of if this is a great deal a so/so deal or a bad deal which I certainly hope it's not lol, I hope it will help someone overcome the fear of there first deal. Or perhaps someone can learn from any mistakes I have maken. 

This building was found on craigslist as a six unit building for sale for 125k. I emailed the owner and asked about seller financing, he replied that it was something he would consider. I visited the property he actually agreed to a home inspection before I got it under contract. We agreed upon a purchase price of 110k, I was prepared to put down 25% on a land contract if need be but I certainly didn't want to put down that much. I asked him what he was using the money for and he needed 20k to put into a 12 unit he had just purchased.

I offered to put 20k down which ends up being about 18% which is less than I was actually prepared to put down and less than my bank would make me put down. We agreed upon a 7% interest rate and a 5 year term at which point if I couldn't secure financing he would continue to finance me. 

The total rents for the property are 3300 all six units are currently occupied. He provided the last year of gas and electric bills for me to review so I could figure out my actual numbers. With property management PITI, utilities, and cap ex I should be cash flowing about 900 a month. It may be slightly more but I put in a higher cap ex than normal because of a bigger building not completely gut rehabbed like my 3 duplexes etc.

I hope this info helps someone and if people are interested I will continue this for the next four weeks in new threads. Up next week 8/1 to be precise is the the four unit all one bedrooms! Wish me luck 12 units down 8 to go!

Well I have been investing for just under a year and a half. So I guess the answer your looking for is all of them lol?

That's pretty funny actually, to date the only property that I have ever purchased and lost money on is.......The one I didn't first bought to live in and not as an investment. I bought in a great location got a low interest rate market tanked slightly and after five years it hadn't appreciated at all in fact, well you know the end of this story lol

Hey steve thanks for the product info! I have never heard of or used this product but i'm guessing some people are going to try it out and it could be of great use to them thanks!

Most leases have a noise clause in them, usually stated as something along the lines of not disturbing the other tenants, occupants etc. I had just this issue a couple weeks ago and I went and directly addressed it, first there is no incentive to following the rules so please don't offer one. You don't want to have to call the police or try to impose extra fines or the like. Just sit down with them and let them know you have been receiving complaints. Perhaps after the tenants downstairs move out you can suggest that they move downstairs where there noise isn't as much of a hindrance to anyone else.