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All Forum Posts by: Ken Sean

Ken Sean has started 2 posts and replied 6 times.

Post: NOI basics- experts please help

Ken SeanPosted
  • Real Estate Investor
  • San Jose, CA
  • Posts 7
  • Votes 0
Originally posted by "SteveSchow":

Also, when doing your due diligence, make sure to have inspections to find out if there is any deferred maintenance, which is even more likely to be the case if they have historically had low expenses. That would mean that they have postponed taking care of certain expenses that should have been addressed. As you find out what those things are, you have to negotiate the sales price down because otherwise you will soon be faced with those expenses which are over and above what they have been reporting for the past couple years as their normal operating expenses.

Let's say there is a certain amount of expenses that have been deferred, and you do negotiate the price down. Obviously, these are still issues you may want to address. What would be the most common ways of taking care of this with OPM?

Post: How did you build your team?

Ken SeanPosted
  • Real Estate Investor
  • San Jose, CA
  • Posts 7
  • Votes 0
Originally posted by "Licwidsand":
Dan, I'm stealing your list and elaborating.

1. Savy real estate attorney
Don't be cheap.

2. lender(s)
Direct lender specificaly. Find a mortgage broker with there own wholesale lines. They will have more felxible terms than the traditional lenders. Eg: not countrywide, wamu etc.

Find a direct hard money lender. Not corporate. You are looking for a trust or individual that has there own money to lend. They will have bendable rules.

3. comm broker
Try to find a national one if you intend on leaving your area to buy in the future.

4. title company (unless your attorney handles title work and closings)
Ask for a rep and build a relationship, they can do a lot of leg work for you. be sure they do double escrows as well.

5. savy accountant
Make sure he/she has other investor clients. Ask some one for a referal in your REI club or your new attorney.

6. insurance agent
Let them know what you plan on doing up front. This way you can weed out any one that will get in your way. For example if they don't insure vacant properties you will have a problem.

7. management company (get a backup, as well)
Find an owner that has his own properties. You want them to spend your money like it is there's.

8. contractors/maintenance
Make sure your contractor bids your jobs at cost and shows you his fees. I made a deal with my conractor for $1000 per week mark up and $300 for everyday he is on the job physicaly doing work. Keep in mind people I am in Ca. I usually end up paying about 15% total make up on my rehabs. California average is 20%-25%

Thank you for elaborating even more. What is a reasonable rate for a savvy attorney?

Post: How did you build your team?

Ken SeanPosted
  • Real Estate Investor
  • San Jose, CA
  • Posts 7
  • Votes 0
Originally posted by "MikeOH":
I think you'll find the most important team member hiding in the MIRROR!

Mike

Of course... How did I forget about that member? :wink:

Originally posted by "danoconnor":

A 20+ unit for your first deal is a bold endeavor, for sure. Achievable, though.

My 2 cents...

1. Savvy real estate attorney
2. lender(s)
3. comm broker
4. title company (unless your attorney handles title work and closings)
5. saavy accountant
6. insurance agent
7. management company (get a backup, as well)
8. contractors/maintenance

I absolutely agree. There are going to be a lot of hiccups, but with the right talent, we should be able to navigate those waters okay. Plus I think its critical to have multiple exit strategies throughout the transaction, and after closing, (which is a whole new thread to have an in depth discussion about).

I noticed a few of you said to get in touch with investors in your target markets. How did you find those people? (other than this forum 8))

Post: How did you build your team?

Ken SeanPosted
  • Real Estate Investor
  • San Jose, CA
  • Posts 7
  • Votes 0

I'm new to the real estate investing game, and would like to find out how other people have built their teams. This is a tentative plan I'm building in my head, so feel free to critique it and offer your advice, but I want to create an LLC to invest in commercial properties. I want my first acquisition to be an apartment with over 20 units. I want to be able to accomplish this within a year. Most of my time right now is spent studying how to recognize opportunities and analyze deals. The next plan of action would be to talk to professionals who will make this deal a reality.

I think the key will be to build a quality team to navigate this first transaction, (and possibly future transactions.)

For my specific situation, I want to invest property out of state. San Jose is a different beast for investing, and I feel my time will be better focused in easier areas that will generate positive cash flow.

So it would be great to hear general stories of how you built your team, but the icing on the cake for me will be to hear about people who started with similar goals.

Also, I realize each person on the team is important, but who do you consider most critical in getting your deals done? In my head I'm thinking the attorney, but I could be wrong.

I appreciate the feedback, and I will apologize ahead of time for all the questions I'm probably going to fire away with later.

Post: New Guy From San Jose, CA

Ken SeanPosted
  • Real Estate Investor
  • San Jose, CA
  • Posts 7
  • Votes 0

Thanks Rehab. I updated my profile and am including the blurb about myself below.

My name is Ken, and I was formerly involved in residential real estate sales, part REALTOR and part assistant to another REALTOR. I am now working for the sales organization of a hi-tech firm in the Silicon Valley.

My primary goals are to find a way to start investing in multi-family residential properties, and eventually gaining enough savvy and sophistication for commercial real estate deals.

Some things I've been considering include, forming an LLC, as I do have other people who want to invest along with me. However, this requires more research and maybe guidance.

I'm taking a young start at 25 and hopefully I can use this to venture away from my job because... sitting in a small cube all day, 5 days a week, month after month, is.. well most of you probably know already. Plus real estate is just more rewarding.

I've always had a passion for real estate and even more passion putting deals together and making them happen.

Post: New Guy From San Jose, CA

Ken SeanPosted
  • Real Estate Investor
  • San Jose, CA
  • Posts 7
  • Votes 0

Just wanted to introduce myself to the rest of the forum. I'm looking to get started in real estate investment. For those who are around the area, please give some guidance on resources or clubs I should start looking into to start building not only a sound investment strategy, but also an opportunity to network, and meet great people.

Any feedback is welcome. Thanks again and pleased to meet you all.