All Forum Posts by: Rodney Lorenzo

@Jairo Montezuma, Whatever you do, please ask questions and vet the PM thoroughly. I had one of the worst in the state, if not, the whole country literally help run my property into the ground, costing me tens of thousands in lost revenue. Putting squatters in empty apartments. Damaging certain components so they can make money off of the repair. Not telling a renter to open his own electrical bill, causing over $2100 of electrical usage under my name. Unable to flip units in a timely manner because they blame it on govt programs claiming that they can take 4 to 6 mos to receive money, meanwhile you've got no rent coming in and a mortgage to pay. Also, make sure they charge a percentage of the rent roll, not a flat fee.

@Mark Cruse, You interpret that as sensitive? Again, making ignorant assumptions about someone you have no clue about. I'm only getting started, but wait till your bubble bursts, cause it definitely will. I hope you believe in Karma, because your overly-confident attitude is definitely not helpful in the least and sincerely speaking, it's actually annoying especially compared to all the others that responded on here. I advise you to read what the other posters wrote, without sounding so condescending. Is this your idea of positive reinforcement? I pity your children and what they may have to go through in life. Nice to know I'm living rent free in your head, LOL. By the way, you spell it's DUDE, not DUKE. Duh...

I appreciate ALL of the advice I've gotten by those that chose to be professional and helpful instead of using their emotions in which to berate me with. This network is about investors helping each other out in case any forgot. It's NOT about speaking down to people as an alternative to your wife or children. Real estate has many components to it and each neighborhood is different, so making assumptions that if something works in one, it can work in another, is getting ahead of yourself. This particular neighborhood has changed for the worst after my acquisition and I have to adapt to it. Yes, the previous owner couldn't have cared less to carefully select good tenants, because he just wanted to fill it with bodies and sell it. When I saw the T12 and the rent roll fluctuating up and down from month to month, that's when I should've walked. Again. I AM GLAD that this happened to me, because now I have experience under my belt and will know what to do for next time. One thing is certain, despite those that like to attack with negativity and condescension, I won't let this deter me from real estate. I'm happy for those that fully succeeded in their first investment, but don't hold your breath, because things can always take a turn for the worse and we don't need others to berate us for it. At the end of the day, KARMA is a real *****

@Mark Cruse, why would you say I'm not receptive to it? That's your false impression. You act as if you know me. All but you and that other jerk whom I reported to the CEO, were able to teach me quite a lot, which is what this network is supposed to be all about. Instead you think, it's about berating other investors, especially the new ones. Does this stroke your ego and make you feel that you're better than everyone else. Who's overreacting? I post my issue wanting advice and you take that as overreacting? Are you OK in the head? Do you have children and demean them in that manner? That must be your way of getting people to succeed, but trust me, it isn't working. You ASSume that I reject what everyone tells me, but I know the neighborhood a whole lot more now than I did back then. It's taken a turn for the worse and I have to adapt. I can even bet you that no partner would ever do a JV in a neighborhood like that. You say it's easy to get good tenants to live in a bad neighborhood. Really? Even after they hear the gun shots? I don't have any control over that. This was not like this when I inspected the property. I have a regular job that prevents me from driving 1.5 hours once a week to self manage this property if I were to do that, but that's not an option, because without experience I would be worse off. You don't want me to win sir so stop lying. You're nothing but a party pooper that thrives on negativity and likes to make other investors feel like feces, AGAIN, because it makes you look good. I'm sorry that you have nothing better to do than to come on here and speak down to me because that's the only way you can stroke your ego. There's a way to deliver advice that's effective that you need to learn about. Just read the other posts and you'll know what I'm talking about.

I reached out because unlike others that have 17 years experience, I don't. Do you think new investors deserve to be attacked and spoken to in a condescending tone? Were you berated when you made mistakes with your first investment or was it a complete success that you had to pinch yourself and thank your mother for producing such an awesome human being? I'm GLAD that this happened to me, because unlike the pity-party-of-one crowd, I like to LEARN from my mistakes, not highlight them so that I can get attacked with condescension. I now know what to do for my next investment. It's a learning experience and if I were to guess, most first time investors, don't laugh their way to the bank with their first investments. They make mistakes and they move on. They don't turn to forums like these to be attacked with ignorant assumptions from people who don't know you from Adam. I will continue to turn to BP for advice and I will CONTINUE to fight back to the ones who feel they're holier than thou through their attacks. Your day will come. Trust me

Quote from @Mark Cruse:

Quote from @Rodney Lorenzo:

Quote from @Mark Cruse:

This is a long topic so I didnt read everything. However, from your initial post and some of the other things you have stated it seems like you just rushed in with limited info of what you were taking on. Also, some of responses and assumptions still sounds like you are operating in that space. One of the main problems I see is  you are cutting and running at the first sign of problems. Second, it appears you feel low income stuff is impossible to manage and class A is the yellow brick road with zero challenges. Both of those are false. That property can be filled with decent tenants, stable and functioning. In class A, if you dont know what you are doing you can have a wide range of significant problems as well. You also say itś impossible for you to manage because its over an hour away. I have managed the majority of mine from further. Taking time to fill it with inept tenants could easily back fire. Many people buying multis are experienced. If you tried to sell me something like that it would be very easy to uncover; then you are set back even more. Look, the job is not easy no matter where you are. I have been where you are many years ago. I rolled up my sleeves; figured out what I needed to do to make it work, then I did it. Its one of my favorite projects now. Either way, there is tons of great advice here. Soak up as much as you can then make a sound and not impulsive decision. Sorry this hapend and best of luck. 

 I forgot to put in my post that this was my first commercial investment. In this business, you learn by doing and not all first time investors succeed. Did you succeed on your first investment? Congratulations then! I wasn't that successful, but I'm glad all this happened because I now know what to do. There were many things I didn't do, but you learn by doing. Forget about getting Class B tenants in a Class D neighborhood which is slowly going to Class E. They'll need earplugs for the gunshots during both day and night. Fill it and sell it. Next

 You strike as a person that does little research on anything nor do you are receptive to sound advice. Not even sure what you are doing or if you even came here for advice. I sincerely hope Iḿ wrong but I wont be surprised if you stay in real estate, no matter where you land it will be a chaotic fiasco. 

Good luck man............

Wow, you don't even know me and are already make ignorant assumptions. Where do you buy your crystal balls? You seem to be such an expert on everything right? You can't even admit to any mistakes you've ever made because you think that implying perfection will win you respect. Are you perfect? Do you own any mirrors? You'll soon see that you're not. The objective of my post is to get advice from experienced professionals because that's what newbies should do. Instead you attack like a shark and say that all my real estate ventures will be a fiasco. Do you believe in Karma? What happened to me can happen to others. A good neighborhood can take a sharp turn South and just wait till your bubble bursts. Because it will one of these days and someone will put you down and attack you like you did to me. Get help pal. You need it

Quote from @Mark Cruse:

This is a long topic so I didnt read everything. However, from your initial post and some of the other things you have stated it seems like you just rushed in with limited info of what you were taking on. Also, some of responses and assumptions still sounds like you are operating in that space. One of the main problems I see is  you are cutting and running at the first sign of problems. Second, it appears you feel low income stuff is impossible to manage and class A is the yellow brick road with zero challenges. Both of those are false. That property can be filled with decent tenants, stable and functioning. In class A, if you dont know what you are doing you can have a wide range of significant problems as well. You also say itś impossible for you to manage because its over an hour away. I have managed the majority of mine from further. Taking time to fill it with inept tenants could easily back fire. Many people buying multis are experienced. If you tried to sell me something like that it would be very easy to uncover; then you are set back even more. Look, the job is not easy no matter where you are. I have been where you are many years ago. I rolled up my sleeves; figured out what I needed to do to make it work, then I did it. Its one of my favorite projects now. Either way, there is tons of great advice here. Soak up as much as you can then make a sound and not impulsive decision. Sorry this hapend and best of luck. 

 I forgot to put in my post that this was my first commercial investment. In this business, you learn by doing and not all first time investors succeed. Did you succeed on your first investment? Congratulations then! I wasn't that successful, but I'm glad all this happened because I now know what to do. There were many things I didn't do, but you learn by doing. Forget about getting Class B tenants in a Class D neighborhood which is slowly going to Class E. They'll need earplugs for the gunshots during both day and night. Fill it and sell it. Next

Quote from @David Sergile:

@Rodney Lorenzo sell it subject to the existing loan, lots of investors would jump on that

 Sorry, what does that mean? 

@johnclark, What you said makes perfect sense and yes, I did have a lawyer who is known for being one of the best, except not in my case. Maybe it was totally up to me to tell him what I wanted in the contract but didn't. I'm not happy that this happened to me, but at the same time I am because now I'll know what to do next time. I made the mistake in expecting my lawyer to know already what to do, when it's me that should have told him about which specific contingencies I wanted in the contract. You live and learn. Now I hope I can turn this baby around, because if not, I'll have to get rid of it and start all over again. I'm not going to let this deter me from real estate investing. Thanks for being professional instead of using your emotions to bash and chastise me like @jameshamling did. Have a good day!

Quote from @John Clark:

Quote from @Rodney Lorenzo:

This is good to know and something I'll bring to the attention of my realtor who represented me

 STOP RIGHT THERE. Why are you using a real estate agent -- who gets paid on commission and therefore has a conflict of interest because he wants you to buy (and can recognize "urges" a mile away) -- for drafting LEGAL documents like contracts? You need to pay a lawyer. Yes, it's money -- often a lot -- up front, but the lawyer works only for you. Not the other guy, and not the real estate salesman. A lawyer would have provided that you received all the financials by a set date, and approved them to your level of performance. Yes, you will sign a non-disclosure agreement to make it happen.  No documents by date X? Money returned. Disapprove of financial performance and rent rolls? Money returned. No X? Money returned. There's a Z? Money returned.

You don't go to a salesman for medical advice. Why did you go to a salesman for legal advice? 

Cut your losses. Sell/donate the property. Set your goals. Assemble a TEAM that knows of, and can help you achieve, your goals without any conflicts of interest. Particularly a team strong-willed enough that can save you from yourself. Many times your best friend is the guy who says "No."