All Forum Posts by: Robert Schumacher

@Jerry L Watson we bought a 11 unit building for 320k which came with no tenants. Since conventional financing was not an option, our HELOC got us in the property. In 4 months, we stabilized the property and will be pulling all the original capital out with permanent financing. BRRRR Buy, Rehab, Rent, Refinance & REPEAT

@Joseph Parker - I just googled “is Good Friday a legal holiday in Indiana” and the answer was “Yes”. Hope you get this info before your lunch. Good Luck !! (It is not a federal holiday but some states have “state holidays”)

Cagri If your up for a cup of coffee, I’m happy to discuss what I’ve been doing. I’m not a financial advisor and won’t try to sell you anything. I am an active investor. LMK

Is your plan to buy & hold? Are you comfortable managing? Are you sure it’s a C neighborhood? Will a PM want to manage this? Are the courts landlord friendly or will they let tenants live for months for free? What’s your exit strategy? —- Reality —- high crime area will not give you choices on good tenants. If you have riskier tenants, you will have higher expenses and I doubt 40% is enough. You will have a higher chance of evictions or worse (tenants who play the system). There is money to be made, but it is work.

I would disclose that I’m getting 2-3 bids but I’m not interested in the lowest bid. I’m interested in their perspective on what is needed to properly repair the situation. I inquire on their availability, reliability, references and I let them know I want to be treated fairly and that the work will be assigned on Friday.

We have 85 doors with a local Property management company and 28 doors that we self manage. The self managed doors are given a P.O. Box to send correspondence and a separate bank account to pay rent. We ask for rents to be deposited in cash or money order only. We transfer all rents to our primary accounts regularly. Results: most rent is paid between 3rd & 5th because we ask for cash or money order. We have only had 1 check bounce. We enforce late fees on the 6th. Tenants are aware that the 3rd time they are late, we will ask them to find a new home. They will get a phone call on the 6th and a 3 day pay or quit on the 10th. THE KEY IS CONSISTENCY and the tenants will know what to expect based on their actions.

@Gary F - Have you checked with the San Jose EDC? I looks like someone is building about 500 units on Winchester Blvd. Personally, one of my investing objectives is to make sure the property cash flows. I haven’t found that in our area. For this reason, I have purchased out a few hours. Let me know if you want to grab a coffee. I’m in South Bay too. Cheers

Ben Durwood We did get the property through a broker but it wasn’t a pocket listing. I’m not sure how we got the financing if I’m really honest. I think the appraiser must have put a lot of value on comps and overlooked the condition. We did put 25% down and I have a 30 year relationship with the bank. The loan is fixed for 10 years, with a 25 amortization schedule.

@Abel Sanchez - can you stay in the studio and rent both of the duplex units? If this makes more sense, i wouldn’t rush to live in the duplex. You will have to look at the numbers. CONGRATS !!

Ben Durwood We has success with a 10 unit rehab first and it went smooth. The 74 unit was pretty rough and bank owned. We tossed a stupid offer. We paid $1,050,000 and it has rental potential of $52k a month. We were under capitalized with only 20 units occupied. The property lost money for a few months but we wrote out a 2 year plan after walking every unit and the cost to repair. It’s been a great learning opportunity. We have made some mistakes but it’s going well.