All Forum Posts by: Rejean Julien

There are so many different opinions on the subject but the bottom line is raising money is a relationship game. The easiest method is always people you already know.

A strong relationship with the prospect combined with a high level of trust and comprehension leads to much higher success rates. You have to think, if this was your 200K, who would you lend it to; someone who sends you a postcard in the mail or someone who calls you on the phone and arranges a meeting at a coffee shop.

The more intimate the interaction the better chance you have of uncovering what their fears and needs are which, if properly addressed, will give you a much better chance of converting that prospect into a private lender.

Rarely do investors 'attract' private lenders, typically you need to make them by going out and offering people an opportunity that may benifit from.

There are alot of really good articles on this site you should read.

Happy investing

One note, it is possible to wholesale without money.

I have heard of people walking door to door and shaking hands with home owners explaining that they are looking to buy a home in that neighborhood. I know one guy bought a yellow pad and hand wrote thousands of yellow letters then personally hand delivered them to a neighborhood.
You can also call FSBO's or drive the neighborhood looking for abandoned houses and tracking down the owners.

One on one networking might get you in touch with people who would be willing to buy properties (local flippers or investors). Local REIA's are great places to start as well as meetups regarding real estate.

However the process would be very slow and certainly not reliable til you can fully develop the various aspects of the business.

I think my major point would be that having no money is not an excuse for not acting. :)

happy investing.

A comprehensive spreadsheet of the specific materials you would use in your rehab is the way to go.

Home Depot has a canadian version.

http://www.homedepot.ca/

for specialty items amazon has alot.

http://www.amazon.ca

You can also speak with private suppliers in your area. If you are a contractor or can convince a good supplier that you will be renovating alot of homes you can get a contractors discount which usually equates to 20 - 40% off.

I think that is quite high.

Calculate the amount of coverage per gallon and then the cost per gallon. That way you get a rough idea of the amount of paint involved. (coverage numbers are usually listed on paint can or online) Add 10% for misc materials. You should be able to get by with 2 coats unless the sheetrock is new(unprimed) or the previous color was very dark.

Labor should be on the low end as painting is considered to be low skill work. However this number is dependent on you area, in mine its about 12$/hour. Obviously you will need to account for a site super and the painting company itself needs to make a profit.

It will take 2 guys 2-3 days to complete 1350 sqft. including touchups at the end. In all honesty one good painter could easily paint that whole house in 3 days.

This is a very rough estimate but will give you an idea of whats involved.

Personally i pay .90$/sqft including materials, but i have been using these guys for a few years now and keep them very busy. I would have a problem paying more than $1.25/sqft.

i would say 90% of painting companies will charge more than i am willing to pay, it all depends on what you can negotiate. That being said if you dont get the right quality you are going to pay twice.

I think those articles are great. Would be a really good resource when negotiating with the owner of a high end home :)

Plus articles that propagate fear can really cut down the competition. The truth is, as an informed investor one needs to be able to make their own decisions based upon valid and sensible information.

I especially love how there is an avertisement for a book called "the housing trap" at the bottom. Nothing like fear to sell a good book.

I choose to ignore your ignore

Mortgage broker, Real Estate Agent and Appraiser each offer some skills that can benefit areas of real estate investing. Note these professions also carry liability as they all require licensing.

If you want to do fix and flips a general contractors education would be really helpful.

Hard to find but probably the best would be ... Assistant to an actual real estate investor! You might be able to work for a wholesaler, flipper or maybe a multifamily investor. If you work hard for a meager wage then you will likely be paid dividends in an education.

I think if you are puttin up 2/3's of the capital and you are providing the financing you are taking alot of the risk. I would think you should get a bigger peice of the equity split at least, how much that is up to you i guess.

I am assuming if its a newly formed LLC you are personally guaranteeing the loan correct? Is there alot of work to get the property to a rent ready state?

The 50/50 split on the income makes sense if she is managing i guess but i still think you should be getting a much larger peice.

Just my thoughts.

That being said being greedy can leave you owning nothing. I have given up alot of money on deals i turned down because i wanted more :)

I have to be honest, the amount of knowledge and preparation required for such a complicated purchase, rehab and manage is probably outside of even your imagination at this point. But lets pretend it wasnt, where would be a good place to start..........

You should begin by reading everything you can find on this site related to multifamily or apartment investing. Every free moment you have :)

Start with going to the property and taking alot of pictures and as many notes and measurements as you can think of. Get pictures of the major systems, plumbing, electrical structural etc. Get a detailed list of all the things you would want to do to the property along with some idea of what materials are appropriate for your area.

You should also walk through with a licensed contractor who can assist you with all the problems you probably aren't trained to see. They can also help with ballpark figures for the sewer system or other costly problems. Once you have an idea of what condition the building is in and what would need to be done on the renovation side you would then need to speak with a commercial broker.

You need to know what kind of rental market this property is in and you would need to put together a full proforma based on local research. At this stage this the proforma doesnt have to be complete as I am sure there are many costs you are unaware of. Often a good rule of thumb is the 50% rule; 50% of your gross income will be eaten up with operating expenses. I would also suggest touring every apartment rental in a 1 mile radius so you can get an idea of who your competition is. Call local management companies and pick their brains about similar multifamily properties.

Multifamily buildings can be alot more expensive to analyze as you will have costly inspections and reports that need to be paid before you can proceed with a purchase.

Even if you do not buy the property you will learn alot asking these questions and collecting the information. You will most likely waste alot of peoples time but its a place to start.

Another really good option is to try and find an experienced partner in your area or try an shadow an experienced multifamily investor for a couple years til you pick up enough to get started.

I wish I could tell you that there is a quick method of getting your rehab costs but, in my experience, the only Reliable method is to build them yourself based on labor and materials.

Plus the work involved will allow you to make accurate alterations for future jobs. It will also give you perspective so that you can keep an eye out for cheaper or more effective trades/materials.