All Forum Posts by: Reed Kelly

Hi @Michael Orlando- that's really awesome! Can you describe how a cold call to an apartment owner goes for you? I'm a new to cold calling and am interested in any tips you have to offer. There are several prime properties I've identified and found contact info for and am looking to bolster my chances of a successful first conversation. Thanks!

@Avihay Ohana & @John Mucilli: I'm also curious who you're using for cold calling. Is it actually a person making phone calls? Or a direct-to-voicemail service?

@Femi Ibrahim

If the building was originally built to code (building and zoning) but was not permitted, the city might allow you to bring the building up to current code with current permits and permit fees. You’re out some money but the project goes on.

On the other hand, if the building was not originally built to code (building code and zoning code) the city is unlikely to let you bring it up to code at all. In this case you’re not “grandfathered in” because you were not legally part of the family to start with!

@Parker Eberhard

Exactly. This is what I logged in to say as well: the whole podcast talks about due diligence and understanding permitting before you purchase. The situation here could have been resolved with a quick trip to the city/county records office. Possibly looking at the tax assessment would have helped too: us the assessed value based on land value only, or land + improvements.

Congratulations on your first property! It's always harder to start something moving than it is to keep momentum going. 

A few follow up questions:

• What did you rent it for? How's the cash flow?
• What's next with this property? Does it have a higher valuation that could give you cash out or HELOC money for your next project?
• How long was the rehab process?
• Any before/after pictures?
• What's the next step for you in your real estate investing career?

Well done on taking action!

Gotta get that ghost on a lease! 

When Bigger Pockets rolled out their landlord forms earlier this year, did they include a 'ghost lease'? Like a pet addendum, but spookier.

What are your thoughts on using cap rate vs. comparable sales? I’m asking given that this is a 4-plex property and I’m assuming it’ll be bought with residential financing (correct me if I’m wrong!).

I prefer to buy my sandwiches rather than lease them...... mmmm turkey, bacon, avocado. Joking aside, I’ve never heard this term before. Thank you Mike for your clear reply, it made sense of the whole (wheat) question.

Most answers you’re likely to receive will need a big ol’ “it depends” qualifier. The best, fastest, and most accurate response will come from a quick phone call to several local banks in your area! You don’t have to go through a whole approval process with them at the time, just ask what their standard requirements are (for LTV, % rate, fees, turnaround time, etc). If you find a bank you want to move forward with, great! If not, just keep calling.

This is great news! I wish I had these a month ago when I turned over a unit (I should have bought them then!). Great resource to have access to for the next turnover.