All Forum Posts by: Zach Jones

I need to do more research on syndication, I'm somewhat familiar with what they are from a few RE books but I'm a little lost when it comes to meeting people to make them a reality.

The reason I'm trying to skip so many steps and go large, is just my logic.. if I were to put 6 figures into a smaller MF - tri,quad, 5,6- it wouldn't provide me enough cash flow to accomplish my goals.  A 3/4 could potentially CF 2500/3500 monthly, I'm looking for more around 5000. 

Quote from @Simmy Ahluwalia:

1st position lien at 65%; seller 2nd at 20%; and you bring the 15% cash down plus fees and closing costs.

 Seller financing is one of the best methods I've read about with $ down. 

15% down is simple enough, but a 1st pos lien at 65% and seller 2nd.  Can you elaborate?  The seller should be financing 85% , so what the difference in the 65/20 in how the lien is held?

Quote from @Jaron Walling:

A credit score means nothing. 

 To an extent, but it allows leverage, which is a goal of mine.  I know its a big jump, but pound for pound , it just seems to make more sense to me.  

And I agree 100% ! Experience is invaluable.  But I'm hoping someone whose done it or has seen it done can just drop a little knowledge on the acquisition 

Quote from @E. C. "Stony" Stonebraker:

 They can bring capital, experience which will help get the financing you need and help guide you to manage the property (if that is what you want to do).  You'll learn from them lots of the details that you can't know unless you actually participate in an acquisition or two.  Get that experience, build some equity and capital yourself and then you'll be in a better position to acquire something on your own.

I would love to find a mentor of sort in my area who would be willing to do that, but some things are easier said then done.  An issue for me in this area is that I work a fulltime job, putting in 50+ hr weeks.  I'm doing this to "buy me freedom" so to speak. So I'm trying to learn everything, of course, but I'm not trying to manage it or any of that. Acquire enough to a consistent income, freedom. 

 Yes save for your DP or partner with someone, really not sure what else to say,  

 It's not like I've got nothing, I'm talking a high 700s credit score (with decent history), great income and 150/200k down.. obviously a DP is needed, I'm just wondering if people are really coming to the table with half a million or how to get into the club so to speak with what I have.

Quote from @Mike H.:

Bryan, its interesting that you say that. I wondered if any of these private investment groups might start recruiting some of the private investors to put together packages of rental properties.

I was reading an article the other day about the bulk purchase program and how all these big funds were looking at buying sfh's for rentals. They were saying how it was going to become a whole other asset class for these big investors.

Holy **** this did not age well.

Bigger Pockets.. Its been a long time. Since my last time on here I've successfully purchased my first investment property. A triplex, currently trending to have a full ROI in around 4.5 years. Seeing the potential and already having a goal of one day owning an apartment complex or neighborhood, I'm not wanting to see what it takes to successfully pull it off. I'm not overly liquid to be purchasing a 3M property and putting down 25% plus closing cost/etc. How do you guys do it? Is there some kind of financing specifically for large properties? To give some context, I'm a 780+ beacon with a 6 figure income and I've always tried to have immaculate credit for the goal of 1 day utilizing it to purchase commercial real estate. Any tips in the financing area would be appreciated because I know this post is somewhat vague, but I'll answer whatever to anyone wiling to share. Thanks

@Eddy Ogbekhilu @Wale Lawal I think Zelle would definitely be ideal, wasn't sure if that was something people did or not. Thanks.

@Theresa Harris Appreciate that!  Should be getting those soon.

@Nathan GesnerI very much appreciate you saying that.  To reply accordingly.. 

1, It's a hard subject to not give it a second thought, but I do agree with you.. its gotta be done.  When you say you'd recommend fresh tenants, do you just not give an option to renew?  Kind of a casual "get out, please" (also, 1 of the tenants has been there over 7 years paying on time so if possible I'd kind of like another 7).

2, When you do a new intro letter, do you let know right away your intent to raise the rents upon the lease end? And I do intend on getting a new lease signed after their current lease expires.

3, Good to know! I'm gonna look into it here, once all the smoke settles.

And lastly, the "short version" just referred to the detail in the post, I've posted on BP before and been told I left out crucial things such as details with numbers for someone to determine if a deal made sense financially or not so I originally typed up a whole manuscript, lol. I've sold cars for many years, I know when to shut up and let people sell themselves!   Appreciate the response and congrats with the properties, thats awesome to hear! I hope to be flirting with a similar portfolio in the coming years. 

Gonna start by saying to just typed up a super detailed post explaining everything in my head, then I accidentally clicked the power button on this chromebook and deleted it all; so bare with me on the spark notes version of this.

Closing in January on my first investment prop.  A triplex local to me, built on 2006. Tenants in place, can keep or replace, pretty turnkey.  Got it with a conventional loan, 3.87 rate for 30 years.  With escrow, about 2240(about because I'm waiting on official ins quote) monthly with around 110k down.  (If you saw my last post, did a $ out refi to spare myself from Uncle Sam) .  Property appraised at about 417, got it for 405 with seller paying 10 in CC.  

As much as I don't wanna be the new guy to come in and raise rents.. current rents are way blow market at 1k, 1k, and 1100 and I've gotta them up a little. I'm wanting to raise it to $1325 upon renewal and most likely 1425 for new tenants. Both of those numbers would still make this the cheapest rental anywhere in this city or the city over. Cheapest currently is $1500 for a SFH. If all tenants renew, I'd be looking at roughly $20800 annually (not including 7% or so maint. Being an 06 build I don't expect anything too crazy) or a full ROI in just over 5 years. At the 1425 the Return goes down a whole year.

Now as a new LL, I know there are some things that need to be done. Such as an "intro letter" or "landlord letter".  Any advice on how to do this?  Is there a general transcript people use or is it better to have that "personal touch"?  Also, how soon do you let the tenant know of your intentions to raise the rent? Is it done in the initial letter or do you wait a month or two?  I think 60 days have to be given, before lease end.. am in Florida, if anyone knows.  How do you guys collect rent?  Checks/Deposits/Crypto? haha, I've been told the current tenants all pay on time but haven't yet heard front he current management company on HOW the actually pay it.  I've been told to steer clear of accepting cash but are there any way you would recommend over others?

What is the process of doing a quitclaim deed, and how quickly can that be done? The property was purchased in my personal name but I very much intend on it being in the Business ASAP for both tax reasons and not to mix my personal/rental finances. I have an appt this week to set up the bank account for the security deposits and the monthly rents. While on that subject, I'd like to put my primary residence under the LLC as well, if anyone has any advice on that.

I had several more questions that I'm blanking on but if/when I can think of them I'll post.  If anyone has any advice in the space of MF rentals I'd love to hear .  I don't have too many people in my life to discuss this stuff with so I'm very appreciative of the knowledge and experience a lot of people on this site provide, wish my original post didn't delete but it was about 3x longer then this so maybe it was for the best.  Thanks for the read and thanks in advance for any tips/advice you got for me!  

@Benjamin Aaker Thanks for the clarification. That's good to know for the future, if I ever did a quick flip of sorts or sold something at a quick profit. Going with the HELOC! I definitely think in the long run thats the smarter move.