All Forum Posts by: Robert Schumacher

Ask for bank statements so you can track the “Actual” incoming rents. You could have 5200 in rents due but only collecting 1800 which would change your numbers drastically. If they wont provide the numbers, I would encourage you to walk. Also, I’d would test the water with a really low offer, and make sure you get your due diligence done. Is the building red tagged?

I would have a discussion with YOUR attorney and follow their guidance. They have YOUR best interest in mind and will guide you. They also know YOUR rights. I would not stress over it. The homeowners insurance policy probably has better coverage than you may think. Good Luck

Raymond Y. I think it depends on your goal and what you really want from the real estate. Personally I like the multi family units. There is more work because you have more tenants but they generally cash flow better. I’m am interested in this because it will provide for retirement income. Our single family homes cash flow about $100 a month but they appreciate better. This will help us build a long term portfolio and still provide enough to make a Little now. Hope this help and if you have questions, let me know. Good Luck.

I would find a deal that cash flows with 100% financing, place an offer. If accepted, I would find the financing and buy it. There is a LOT more to it than that though. I would get the whole deal financed and keep the 10k as my reserves for that deal. Nike says it best ... JUST DO IT !!!

I️ recently heard about tenants pouring cement in the toilets and then flushing to have it harden in the pipes. Your cement damaged could have been worse but I️ like your idea of keeping them as tenants so long as they cover the expense of the damages. Good Luck !!!

Tj M. What is your primary goal?

Brian - How many transactions have you closed on so far? You seam to be very set in your ways, but I️ would encourage you to really LISTEN to what so many here are trying to share with you. I️ have learned that working with a broker that does invest in real estate has been better than a realtor that’s specializes in working to help someone buy a “Home” they plan to live in for the next 20 years. At first, I️ was afraid the broker would hog all the good deals and when I️ shared my fear he explained he can’t buy everything which makes perfect sense to me. I’m not a real estate agent. I️ am an investor. I tried using 2 brokers and they knew each other (most know each other in the area) and found that it took longer to get traction. I️ currently work with only 1 broker and he knows “I️ need his help”. I’ve had 14 offers accepted during the last 22 months and 13 closed. I️ currently have 113 units in my portfolio and he is happier about helping us get here than I️ am. I️ cannot stress to you enough that this business is about building friendships and not about only closing transactions. I️ closed on Tuesday with an apartment building for $310,000. Rents will be $8,245 per month. My realtor told me he would have bought it if I️ didn’t. This is the POWER of a relationship. I’m the near future, I’ll be looking to expand into a new area (in addition to my current area) and I️ have a feeling that when I️ share with my next new broker that I’ve closed on 13/14 transactions with 113 units in 22 months, that I️ will probably get a little respect. (Of course, my current realtor will probably be a good reference too).

Way to go ... keep rolling 👍🏻

The complex was 36% occupied and the 4 tenants are moving to a new complex the seller built. This resulted in an empty complex and banks don’t like to finance empty units. Our agent was able to sell them on our ability to complete the transaction in cash if necessary and they accepted the offer. It will take us 30 days to get 10 of the 11 units rented (1 needs rehab) and then we will get permanent financing and have no cash in the deal by the end of the year. My point with the OP is that being patient for the right transaction makes you an investor. Buying a home at retail pricing with the hope for appreciation is ordinary and is risky.

@Francis Dinh - Personally, I would not purchase the place you have under contract. I think there are much better deals out there but they take time to find. I’m under contract for an 11 unit building for $320k and will get $6250 for rental income. You should make your mo st on the buy. Good Luck !!