All Forum Posts by: Paul Cijunelis

I do not think it is a "side-hobby" to manage properties for a 3rd party investor. Do you fully understand the risks of property management, the value a PM brings to an investor? The property manager in me is disappointed in reading that. The REI in me would never hire you based on that statement, alone. Best wishes in whatever you decide but please think of the other parties involved in your decision(s).

Agree. For a toilet "clog" the tenant should be able to tell you if it is the toilet itself because the blockage will pretty much be visible in the toilet bowl itself. There is just a bit of a S-turn behind what you see then the waste travels through pipe inside the walls of the property. So if it is not visible due to a large "evacuation" by an individual, it is either something in the pipes (kid put a toy car in the toilet to see if it flushes) or perhaps a wasp nest at the roof exhaust blocking air from allowing the pressure to release and let the waste flow freely down through the pipes, etc. Have someone check the roof pipe and look down, or have a plumber do it. Maybe there's a bird nest up there...?

The "best" way is what works for you. To answer that is only something you can do. Sorry to be blunt but it's the truth. Why? this depends on three things:

1) your work ethic and personality

2) your hunting and acquisition budget

3) your time

TIME: If you're working full time, door knocking is out of the question. If you're living in an A area and cannot afford an A area property (hard to find anyway these days) and you need to drive a while to even get to an area you are interested in, door knocking is not for you.

BUDGET: can you afford to do 1000 postcard mailings a month for 6 months straight? Do you have a website? Can you spend money on a CRM, automations, VA calling service, a VOIP phone system, etc? All this is stuff other wholesalers and off market companies invest in to find deals (like me).

WORK ETHIC: be honest with yourself...how willing are you to go down this road? Can you talk to someone who is being foreclosed and handle a discussion like that? Can you knock on someone's door and be "likeable" and get invited inside? off-market deals can sometimes be the most emotional situation you will encounter. 

It might be best to simply go to a local REIA networking event and meet some wholesalers that have been doing this for 15 years and buy a deal from them. Sure it will cost a bit more but if the numbers work, the numbers work. And how much would you have spent in time and money to even find a deal?

I personally would recommend the last method. Find some wholesalers. After time you can start finding them on your own after you learn more about the business. I hope the honesty in this post has given you some things to think about and I wish you the best of luck in your real estate journey.

Ask what their monthly fees are. Around here they range from $35 to $300 so that would be my first question! Good luck.

@Sean Graham my 13-unit is right there. Looks like we'll be neighbors...!

I agree with @Nathan Gesner on gas vs electric as well as the capex to do the switch. If the boiler is functioning fine, why change it? Boilers are usually more efficient, in addition to gas vs elec debate. I am not familiar with NY regulations, but investigate whether you can charge each tenant ~$80/mo for the gas (do the math). See if you can get a historical expenditure for this utility and take that yearly cost and divide it by the total SF of all units to get a per SF cost of gas for the building, then multiply by the SF of each unit for a monthly cost for each of the 4 units, themselves. 

Right now you say it is $400/mo but in the summer it is much less so you need an average. you can't gouge tenants or you'll get a phone call one day from a lawyer. Add $10 (or a "reasonable cost" whatever NY defines as reasonable. Here $10 is reasonable) to each unit's monthly cost for the work to handle this utility cost and associated billing and put this in writing in each lease renewal. Lease review with a lawyer and you have now passed the costs to the tenants. Send reminders in the winter about the heat and to conserve energy. Problem solved for much less expenditure. But again review with a local attorney! Good luck.

@Joseph Alfie good morning. I just went under contract a bit ago for a 13-unit a bit East and North of there. Just bordering Jackson Park. One never knows whether an area will gentrify but chatter on the street is money is flowing in the South Shore. Not sure if your property is in that area as you are a bit West. There's supposedly a large medical center being planned, which will also need convenient housing. Obama's library is in the area, etc. I'm interested in this property basically for the upswing I think is coming. But again, Chicago is a town where if you are one block over from the good area, you can go from an A to a C crossing the street.

Seriously consider hiring an attorney that does there. Especially if the property is not yours.

@Robel Nessro good morning. You'll do well if you're this disciplined at 18! To learn about CRE the best place right now to get a general sense of the business is something like chatGPT. Just start talking to an AI engine as though it was a mentor. You'll learn a lot! The question I would have is why are you interested in CRE? CRE for an individual to me seems very bland. Empty buildings, not much to get excited about. Why are you interested? What's your goal(s)?

If funding is an issue, you do have some options. Commercial RE is a bit more strict than the residential market which has more options available due to flexible housing regulations in place to make it easier for people to buy their primary residence.

1) Family and friends. Anyone you can team up with? At 18 with an interest in CRE I'd be surprised if you didn't get influenced by someone you know? A friend's parent? Did you share your interest with anyone you know?

2) Local RE meetups. Yes, these are great for meeting people and networking and learning. There are always private money lenders there and people who will partner up on a deal. Most meetings are filled with people who don't exactly reach out to meet new people so if you go be prepared to be outgoing and honest and FOLLOW UP with people you met but don't be demanding. It will take time.

3) Property management companies, chamber of commerce meetings, local commercial RE brokers, etc are all additional options to network and find people who do deals. You won't FIND a deal in this area but you will meet people doing deals and someone might be willing to be involved in a deal with you if you go through points 1 and 2 first. Just keep in mind again these people are working and trying to make money so try not to be a time-suck for anyone. Always think about the other side of the conversation. Try and make it worthwhile for them and you will develop a relationship.

4) to find properties, start calling owners. Look up owners' info and reach out to them directly to find a deal. "hello, my name is ---, I'm interested in acquiring a commercial property like yours. Have you thought about selling?" Good luck