All Forum Posts by: Jeff G.

Damn, @Rodney Miller 20% occupancy is bad. If you hadn't told me it was in California, I would have assumed it was Detroit. If I'm following you correctly, the money is coming from the bank. They'll let you assume the loan and make interest only payments for a fixed period of time and (possibly) get a rehab loan to fix the place up. For credibility purposes, do you have a portfolio of apartments already to point to and say, "I know what I'm doing"? How did you come to know the broker?

I'm reading How to Make Big Money in Small Apartments by Lance Edwards. Informative or not, it has definitely got the "written by a real estate guru" vibe. Please level with me, folks. Who realistically gets 10-30 unit apartment complexes with "no money down"? I have definite interest in the small apartment space in that unit range. I'm skeptical.

I get that "no money down" nearly always means other people's money (OPM) and only very rarely means seller financing with no actual down payment on the part of the buyer. Also, any real deal will surely require incidental expenditures such as paying for inspections, some form of marketing budget, etc.

For those of you who have actually done this, how did you get the deal? How was it structured at closure? How was the income distributed going forward?

Lastly, what am I not likely to read from a book that I really should know going into a deal like this?

@Scott Scheel

I just use Google. "Name" "City" and sometimes "area code" in quotes in the same search. It works fairly well for me. Is it perfect, no, but it's also free and easy. Also, I've paid for a bunch of phone number look up services over the years and... they all seem to suck. Good luck.

@Jen Starr objectively speaking is the electrical issue a fire risk?

If you have to do such heavy work you'll end up putting the tenants in a motel for a few days (on your dime) to get this done. It's really not optimal. Unscrupulous tenants could falsely claim you damaged their stuff and make hay about it.

My thought is, if it's NOT a fire risk, leave it until they move out. If it IS a fire risk address it ASAP. Honestly, cash for keys might be your best solution. You'll get access to the unit much faster and the tenants and their stuff will not be an issue.

It varies, but ballpark 8 to 10 cents a lead. There are YouTube tutorials on how to find different kinds of leads, look there.

@Darwin Crawford, I'll bite. I have aspirations in the small to medium apartment space, even if I have to use other people's money to get there. I've been taught from day one, "Loop Net is where deals go to die." I still look at it, mostly out of curiosity and sometimes out of fascination at just how badly dilapidated some buildings can get and still be "occupied".

Seriously though, what makes an apartment complex stand out to you as a possible deal using only the information you can get from Loop Net? What about those specific listings make you pick up the phone and dial the broker in order to ask for the P&L's, rent rolls, etc. so you can do the math you need to be more certain it's the real thing?

You say it can be done and I believe you. I don't mind working my butt off and cold calling brokers, but I want to do it effectively and efficiently.

@Erik Bowling, when the tenant moved in did you get first AND last month's rent? Or, did you just get a security deposit. If you got a security deposit only than, as I understand it, the answer is no. Security deposits are to handle issues of "damage" to the property. This can be actual physical damage or money you had to spend to clean the place up even though the property itself wasn't mistreated.

How this is usually handled is by filing in housing court for money damages due to missed rent. You can only go after her for the time period between the time she left and the time you got a paying tenant in the unit. If that takes a month or two, then you can go after her for a month or two's lost rent.

You may need an eviction lawyer to help you through this process, but you can also pass his fee on to the tenant if you succeed in obtaining a judgment.

You might consider requiring LAST month's rent too, in addition to first month's rent and a security deposit going forward.

I hope that helps.

 I have no idea why Pit Bulls are the ghetto status symbols that they appear to be.

You're welcome @Laticia Braxton. Every day needs a few good laughs.

Oh, gotcha @Ryan York. I'm sorry, I don't know anyone specific. Maybe someone else will respond to this thread who can help you more directly.