All Forum Posts by: Tanner Gish

Hello BP World!

 I haven't quite found an answer regarding this last question, before I "click" the trigger on my first direct mail campaign:

 I'm using corelogic, have my filters set, and am ready to buy. Now... my analytic mind is being slammed with dozens and dozens of different "Output Packages" (for those who aren't here yet, you can select all the filters you want, and corelogic will tell you how many leads are in this query. When you purchase though, the output package determines what your cost/lead will be, by determining what information fields will be provided to you for each lead in your query, once you buy it.  I.e.: you want just an address, estimated equity, and last sale date? Expect to get just that data for the 1,000 leads left after all your filters. Want inforation on the mortgage, seller, etc, in addition to this? Expect to pay around $0.30-$0.40/ lead).

 So, to BP (and would love input from guys like @michael quarles, @dev horn, etc): for a mailing campaign, what is the essential corelogic output package I need? What do you guys buy?

 I'd love to hear everyone's input!

-Tanner

Hello wonderful BP community! Here's a question for all the apartment junkies – I'm running numbers on a deal from a broker where looks like there is opportunity for management and utility segregation value add. 26 units, mix of one bed to four bedrooms, in Cincinnati Ohio. The greatest opportunity here lies in figuring gas and electric to tenets, and ideally water as well. In any of the deals that analyzed in the city, underpaid utilities for the utilities are normally in the tent $20,000 Per year range for this size property. This one is at 42,000 a year! Obviously, it's going to vary per market, and for property, that when doing preliminary analysis, what rules of thumb do you use for estimating the cost of segregating utilities ? Thanks guys! -Tanner

Ha! Thanks Lexi. Nails too... things you don't learn, as a guy.

Is this because the grass grows quicker? Still, if it's 2x a month... my guy is 2x a month... and the ground is green and fertile in coastal NE, Virginia, etc. This seems so strange, that an unskilled laborer's job would be as costly or more in the middle of America, than in the higher min wage coastal areas.

 Well, if that's just the reality- thanks for bringing me into it!

-Tanner

Hey Everyone,

 So, question, as I do some due diligence on a 26-unit deal in Cincinnatithat isn't likely to go anywhere... for the following reason- the property is being murdered by its operating expenses (36% of it's GROSS operating income goes to paying for utilites). Seems like RUBS or submetering is the way to go. 

However, it is a C, C- neighborhood, with and unusually low rent roll (and, as I investigate Craigslist, Zillow, and apartments.com, the competition seems to have rents that aren't much higher). AND, it seems that nearly every available property comes with landlord paid gas and water (for those curious, my agent and contractor saw it's a safe neighborhood, spoke with the police captain for this District, and has been told it's safe, and has a strong Community Council and neighborhood identity- just low income).

 This tells me that submetering might drive all tenants out (almost all units on the rent roll are $25-125 below average rents, including the competition) and that even if I underprice the competition by $25-$40 or so, I'll likely loose to them (as the winter heating bill will easily eat that up.

So... probably wondering what the question is? Question is: are there any other websites, normal local resources (other than other investors at a local REI club who do invest in that neighborhood) that I'm missing out on checking what the prevailing norm is in terms of which utilities tenants pay? Second question- am I on the right track- move on, and leave this property be, if loss to lease, vacency, and submetering are the only value add plays, in a C class (not "hot and trendy") neighborhood?

-Tanner

Hey BP friends,

 Anyone recommend an affordable outfit who mows lawns (that is my only need: front lawn and one side of the building, 2x/ mo, on a 6,000 sq ft lot) on the West Side of Cincinnati for a reasonable price? 

 My PM is charging us $33/ visit (2 a month). In (higher cost of living) LA, I pay only $50 for 2x/ mo service on a similar property. Seems like I should be able to find the same or better in Cincinnati.

 Any referrals?

 Thanks!

-Tanner

Welcome to BP, @Sherry Maxey!

Are you connected with any investor groups or meet ups?

If not, not far from you, this Tuesday, is the FIBI (For Investors, By Investors) Meet Up. I believe it's 7:00 at the Manhattan Beach Country Club (check it out at meetups.com).

 Look forward to seeing more of you!

-Tanner

*Most owner paid utilities, not underpaid. Sorry for that Siri typo.

Hello wonderful BP community! Here's a question for all the apartment junkies – I'm running numbers on a deal from a broker where looks like there is opportunity for management and utility segregation value add. 26 units, mix of one bed to four bedrooms, in Cincinnati Ohio. The greatest opportunity here lies in figuring gas and electric to tenets, and ideally water as well. In any of the deals that analyzed in the city, underpaid utilities for the utilities are normally in the tent $20,000 Per year range for this size property. This one is at 42,000 a year! Obviously, it's going to vary per market, and for property, that when doing preliminary analysis, what rules of thumb do you use for estimating the cost of segregating utilities ? Thanks guys! -Tanner

Hey Nathan!

Welcome to BP! I applaud your lead in getting the RE ball rolling, with your demanding day job. My investment partner and I have some partners in the medical field out here in CA for the investing we do in Cincinnati, and find it sometimes challenging to get a sliver of their time for communication. I hope that you're off to a great start!

As for wholesalers, I would recommend two, both of which are actually wholesale brokerages- REInvest Consultants, and Build Realty. I will say with this, ALWAYs run your own numbers, and that so far, I have yet to buy a property from them (although in hind sight, there is one that would have worked, if my cash hadn't been tied up in another deal to purchase it without hard money).

 What parts of town are you targeting, what is your property criteria (more specifically)?

Also, I am in the process of switching to RPM Property Management, based upon strong recommendations. THey aren't the cheapest, but I'm looking at the stress-free release of paying a bit more for lease ups, to not have to put on the armour to fight the nickle and dime approach of some other companies (energy better spent finding deals).

 Look forward to hearing from you!

1 in LA county, and looking to add more this year (just had a fizzled out negotiation with a seller who had 21 units, all students, I was working to syndicate, but couldn't come to terms).