All Forum Posts by: Rex Celle

@Ryan Marrero I have thought about doing Airbnb for one of my properties in Northern NJ, but I realized when I received my first customer request to stay in my property for three nights, that hadn’t set up the logistics and business model to make it run on auto pilot. What ran through my mind was.... since my property is in a gated community, I would need to contact the association and security to let them know guests are arriving and provide the names. I’d have to figure out an easy way for the Airbnb guests to access my unit as I do not have a keypad. I need to clean the unit and provide a map of the entire complex/amenities/entertainment establishments/restaurants nearby. I need to get in touch with a cleaning service when the guests leave. I would say that Airbnb can be a lucrative real estate strategy, but if you’re going into it like I’m planning on doing, be prepared with a scalable business model that allows it run on auto pilot for the most part.

@Rafael Chávez Welcome to the world of real estate. I live in New Jersey and I have been buying out-of-

state properties for the past two years. This may be surprising to you guys, but I have never been to any of the properties physically - I rely only on the out of state team I have put together: Real estate agents, property managers, wholesalers, attorneys, etc. I have built strong partnerships with them and they are the ones I’m always on the phone with; I run my business virtually. Buying virtually may be a challenge when you’re looking for a loan from a bank, so it is important to find a lender who is willing to give you a mortgage for out of state properties. Once you find a reliable banker, the closing is executed via email of documents in PDF which you will have to print sign, notarize and mail during the transaction - wiring instructions for the down payment/closing costs will be provided to you by the closing attorney. Once the property is yours, then it is the property manager who will handle the on-boarding process and add to your RE portfolio.

@Kevin S. Kevin is spot on… Heed his advice

@Bernie Granier As a real estate investor of several rental properties all being managed by property management companies, I am the one who bears the risk of the existing or the on-boarding of bad tenants, not the property managers. However, property managers normally get 10% of rent, so it is in their best interest to screen for a good tenants because if rent does not come in, or if the place is vacant, they don’t get their 10%. This is how my agreements are structured.

@Ahmed Sublaban If you are going to meet with the lender to discuss your intentions of purchasing real estate for investment purposes, I would be very clear with him/her on the type of strategies you are looking to do: Short-term/long-term rentals, fixed and flips, Airbnb, etc. Be prepared to provide proof of income, proof of funds for down payment (Bank statements, 401(k)s, IRAs, other), past two year tax returns, and the list of all other assets. I would make it a goal to walk out of that meeting knowing that you were pre-approved for an amount and also the type of loan programs available to you once you make a decision to acquire a property.

@Emmanuel Ganidekam Hi Emanuelle, in order to determine profit or loss for your new deal (congratulations by the way…) we need to understand what you plan on doing with the property once you acquire. Are you planning on reselling it after repair, or renting it out. Also you want to include the annual property taxes, if you will be using a property management company, estimated monthly rent if this is your plan, monthly mortgage payment, etc. etc. Provide this type of information then let’s see if it’s a good deal

@Cambria Wengert Hi Cambria, I have also been looking for opportunities in Atlanta GA to add to the RE portfolio I have in the state of Georgia. I would recommend you deal with a seasoned real estate agent who I have been talking with. She is well known in the Atlanta area, and I learned that she is a television personality on a reality TV show. Look up Sarah Lowe

with Coldwell Banker Residential. Good lady, smart, sharp and would be a good fit for you in your search.

@Tracy Minick My RE strategy is to specifically target and acquire properties with tenants already in place for cash flow purposes —vacant properties are not attractive to me at this time. I would say that the main benefit for investors who are selling properties occupied with tenants is the ability to liquidate and leverage their current assets to fund other RE opportunities. In my experience, there are not many investors like myself looking for properties that are already occupied with tenants. Therefore, I would say that if you find an investor willing to take over the property with the tenant, make sure to negotiate a good deal where it’s a win win on both end, as buyers like myself are not easy to find Which is why you see occupied properties on the market for over 100 days on average.

@Markia Dunn I bought from a wholesaler in March 2018 and on the settlement statement at the day of closing, it shows that I as the buyer paid the prorated taxes for the remainder of the year. Wholesaler does not bear the tax burden in the transaction between buy and seller (i.e. home owner) you should be good to go

@Terrance Wiggins Sounds good Terrance. Feel free to message me directly so we can discuss further opportunities