All Forum Posts by: Ryan Tortorich

Looking for a new PM for a fourplex in Baton Rouge. Our current PM has not provided the services they agreed to, and they have not been effective in filling vacancies. Any recommendations from other Baton Rouge investors would be much appreciated!

We don’t have a physical copy of requirement that we distribute (I definitely like that idea), but we do discuss them upfront. However, we don’t explicitly say “information in your application will be verified and false information is grounds for denial.” That, to me, is understood. As an update, we sent a generic email without a reason. We received a response asking why with a tone implying disbelief. To be honest, the applicant knows the provided information is false, and we have evidence to prove that it’s false. I’m not sure there’s any reason to follow up after giving it some thought. I don’t see any chance of the applicant admitting it or being civil.

I have an applicant who has provided false employment information (company has no record and paystub has someone else’s name). There are a few other red flags but bottom line is that we aren’t interested. We sent a generic email basically saying that after review, your application has been denied. How would you handle this situation? And what if the applicant asks why? Provide a reason?

Larry H. King Bradford off of O'Neal

@Account Closed With three brothers, we thought it was best to use an LLC. Plus, in Louisiana, LLC fees are super cheap. We used a real estate agent and purchased the property under the LLC using a commercial loan. The loan was probably the biggest obstacle. Since we were purchasing with an LLC, we couldn't get a conventional loan. Those only work for individuals purchasing a property under their personal name. This was a bummer because we quickly learned that commercial loan terms are not nearly as good as conventional loan terms. As a result, we called a ton of local banks to find the best terms. Some didn't do commercial loans at all. Some only did commercial loans for established companies (i.e. at least 2 years old with credit history). A small number would loan to a new LLC with a personal guarantee from the owners. Basically, if the company can't pay the note, my brothers and I are personally responsible. Of the few that would loan to us, some had really strict terms. We found one that had pretty reasonable terms: 5 year fixed rate loan with a 20 year amortization at 5% interest. After 5 years, the interest rate will change to meet market rates. Since these terms aren't as good as a 30 year conventional loan, we had to be sure that the deal was good enough to still provide good returns. Fortunately, after looking for a while we found one that still gets us almost 20% cash on cash! Let me know if you have other questions. Happy to answer them if I can!

My brothers and I just closed on our first property this week! It's a fourplex located in Baton Rouge, LA. After deciding to move forward with real estate last year, we found BiggerPockets and started reading everything we could find. We bought books. We listened to podcasts. We started networking with other investors and real estate agents. At the end of last year we established an LLC and began looking for properties. Our first goal was 4 units by the end of 2017. Well, first goal down! Looks like we need to set a new one! Shout out to @Brandon Johnson for all of the help and advice so far! And thanks to everyone here at BP! I honestly don't think we'd be this far along without this great community.

The others seem to have covered it, but I'm actually working on my first property now using a commercial loan through an LLC. And we (the LLC owners) are personally guaranteeing the loan. Called a bunch of lenders to see if they do commercial loans. Some did. Some didn't. Among the ones that did, some of them were super conservative (i.e. short term, high down payment) and others were more lenient. Just received the loan approval today: 20 year loan, 5 year interest rate adjustment, 20% down, 5% interest for first 5 years. Make some phone calls and see what you can find out! Good luck!

@Zach Sikes @Jason Hirko @Wayne Brooks @Brett Synicky

Update! Agent spoke to her broker and said we can sign a document saying she doesn't represent us and isn't liable for the buying party. Not sure why we weren't told that when we originally spoke.

She also said she might go to 5% but 3% was out of the question. So, progress I guess. We took this path after finding various sources that claimed the commission reduction was possible. It's still possible, but it seems to be heavily dependent on the willingness of the listing agent.

Since it won't be helping much to reduce to 5%, we're planning on contacting an agent we've worked with previously to represent us.

Jason Hirko That is exactly my train of thought. And yea agreed...doubtful that all listing agents present that additional stipulation. Zach Sikes Completely understand that point of view. Now we're just debating on how to approach it so as not to piss of the listing agent but still get our offer accepted. Thanks for all the help BP!!

@Zach Sikes

We're indirectly paying the agents though. In other words, the seller will get less money if two agents get commission versus one. At least, that was our intent.

I don't see how they are doing twice the work. As the buyers (without an agent), we will communicate with the lender and the seller agent, we well contact the title company, we will set up the inspection and appraisal. Why can't we save some money by taking on these duties? I honestly don't see that being unreasonable.