The Low Cost Provider is Usually Most Expensive... - Arie van Gemeren

Multifamily Missteps Hosted by Christy Keeton

Cheaper is better, right? Well, when it comes to real estate services, that is usually not the case. In fact, the cost for you can even be higher in the long run. Arie van Gemeren highlighted this as he shares the journey of multiple missteps he encountered in his deals. He discusses the dangers of not being properly capitalized - imagine if a significant amount has to be escrowed by the bank a few days before the deal! Arie also stresses the need to understand code compliance for less stress in property management.

[00:01 - 06:00] Opening Segment

• Arie van Gemeren on launching his investment company
• The real estate landscape on the West Coast

[06:01 - 12:02] An Empty Bank Account After a Deal

• Making mistakes with your own money
• The importance of capital leftover in the bank
• Strong relationships with your loan broker

[12:03 - 23:26] Do Not Pick Services with the Lowest Cost

• The danger of the cheapest cost provider
• How predictability is more important than the price
• When a unit is not permitted and legal

[23:27 - 24:48] Closing Segment

• You better not go with the cheapest contractor
• Final words

Tweetable Quotes:

“I'm in the investment business. I know, someday, I'll probably want to manage investor money. But I really need to learn with my own money, make my own mistakes on my own dime before I try to go bring money in from investors.” - Arie van Gemeren

“My first piece of advice for anyone is to always make sure you have capital leftover in the bank after you buy a deal.” - Arie van Gemeren

“Have a strong relationship with your loan broker, ask, make clear the things you're concerned about, and make sure that banks not going to play games with you. ” - Arie van Gemeren

“Exhaust all resources to find out if your units are all legal and conforming before you buy something.” - Arie van Gemeren

Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3

Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB

Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC

Support the Show.

Are you feeling overwhelmed with Multifamily deal analysis? Are you uncertain about the right investment? Christy is an expert underwriter and mentor and wants help you on your journey! Visit her website at www.ChristyKeeton.com to book a discovery call now.