Commercial Apartment Complex Problems/ Metro Houston

[Keith Lanier]

I am a former Real Estate Investor, my health was in question for about 4 years, and I have lucky and blessed to finally start to get back into the Game, I have never had any experience in apartment complex investing, my family have managed units for more than 30 years, that was my mother and she is not here anymore...in talking to the owner of the Complex, I see he doesn't have the effective managerial experience to do the job well enough, and the units are becoming deplorable, he has a gold mine, because where the units sit, right now the units, sit maybe within a mile to two major universities, one being UOH, that would be the University of Houston, and the next would be TSU, and that would be Texas Southern University, not ivy league, but top Universities, and the area supports it with what it cost to live in this area, that being said....He wants a ridiculous amount, for the units, but there are not cash flowing like they should, under managed, so we talk about a sale, and he is willing to sell, but I will need a strong partner to make this happen....Love to talk more to someone that has high net worth that could bring equity to turn these around....I have Commercial Financing that wants to paly, but I am not strong enough, with a a capital partner...Anyone? Anyone other than someone that is scamming or looking to take advantage of someone new to this table, we have strong Real Estate advisors, and legal up if we happen to put something together...thanks in advance!

[Don Konipol]

Quote from @Keith Lanier:

I am a former Real Estate Investor, my health was in question for about 4 years, and I have lucky and blessed to finally start to get back into the Game, I have never had any experience in apartment complex investing, my family have managed units for more than 30 years, that was my mother and she is not here anymore...in talking to the owner of the Complex, I see he doesn't have the effective managerial experience to do the job well enough, and the units are becoming deplorable, he has a gold mine, because where the units sit, right now the units, sit maybe within a mile to two major universities, one being UOH, that would be the University of Houston, and the next would be TSU, and that would be Texas Southern University, not ivy league, but top Universities, and the area supports it with what it cost to live in this area, that being said....He wants a ridiculous amount, for the units, but there are not cash flowing like they should, under managed, so we talk about a sale, and he is willing to sell, but I will need a strong partner to make this happen....Love to talk more to someone that has high net worth that could bring equity to turn these around....I have Commercial Financing that wants to paly, but I am not strong enough, with a a capital partner...Anyone? Anyone other than someone that is scamming or looking to take advantage of someone new to this table, we have strong Real Estate advisors, and legal up if we happen to put something together...thanks in advance!

You’re obviously looking for a passive investor, probably without much real estate expertise, since otherwise why would they need you?  Truth is a decent property manager/partner is pretty easy to find; offer some equity and all the top PMs will appear LOL. 

A bigger question is IF your assumption about this apartment complex being a mis managed potential goldmine is accurate.  Here’s my concern, during the 4 years you’ve been out of RE investing the game in the UH/TSU sub market for student housing has changed RADICALLY, as it has near most major universities.  Major corporations have spent large capital building modern, efficient, new, student housing facilities with amenities specific to the desire and needs of students.  What’s left for the small housing provider are the students who are price sensitive; and as in all industries this is not the most profitable niche.  Could be that the seller is providing his target market exactly what they want or need; the lowest price accommodations possible.