OfflineIm abuot to buy a 150+units commercial REO 85% occupied
for a grate price,out side of geting a management company and making shure the building pays fore it self
with good cash flow what else I need to know or what do
I look out for?
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Hey Mikeux,
You might want to make sure the property is in city water and septic. If it is not you want to make sure that you get an inspection to cover you ass!!!!!ets. If it is than you want to have it inspected for pest and any other damages(furnace, A/C units, if the property has a pool have it checked. Just make sure all your ducks are in a row and you cover yourself. It might cost you up front but it will pay in the end. And congrats on the investment.
Later,
Pete
REFUSE TO LOSE!!!!!!!!!!!!!!!!
Another thing to consider is what isthe turn over rate of the renters. You want to make sure that your costs are covered when the vacancy rate is low.
CONGRATS!!!
Kat
Mike, Have you ever rented before! If you have not done this aspect...
At 150 plus! You might want to start off with a,Duplex. Then work your
way up! But then again...Here comes the REI!!!!!!! Buy that puppie low
and sell it...REAL HIGH.
I do not know what you are thinking!
Hopefully...You do know!
Randy
I buy low and; Then i sell high.
P.S.I guess it is the(REAL ESTATE INVESTER)In me!
P.S.S.You have the right idea!
PETE,KAT,RANDY I apprecate your advice and I will act on it.RANDY I am renting but much smaller units nothing like this size not even close. my goal is to rent for a cash flow.
Awesome. My only advice comes from books. That's never pay more than it is worth via the books. I.E. the taxes and rent rolls. Calculate your discount based on that. I know there is alot of ways to calculate the value, but to my knowledge the best way is through the actual cash flow. Also inspections, inspections. I would also make sure I had a very good experianced management company. One with a proven track record. I know it's an added expense but well worth it.
This is all I can think of. Oh one final thought. I would think an LLC would be a good thing here. With it being your first BIG investment you want to protect all you have already accumulated incase of a mistake.
I congratulate you on thinking big. How are you going to learn the ins and outs and make real money if you are afraid to do the big deals. You are a dreamer amoung dreamers.
CONGRATULATIONS!
Do everything you would with any RE deal. Make sure the numbers make sense (is it a great deal??), title is clear, inspections are satisfactory, etc. and then GO FOR IT! Like thompsonek said, why not think big? Very excited for you. Is this a purchase you are already quite far into, or is it time to do some creative "dealing"?
If you can, post some details. And keep us up on the progress. This is great!
Good luck!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
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Thanks thomsonek and rina yes I have an LLC in place and I am in the beginning stage of buying thic property ,and I will keep you all informed
I appreciate all the inspiation you all give it is very impowering.
I wish you all the best.
MIKE