My Apartment Real Estate journey needing feedback

[Joseph Blythe]

This is for All members to read in Multi Family I need your feedback please forgive my grammar and English.

Water off a duck’s back attitude: Some will, some won’t, so what, some waiting.

The numbers: Look at this read carefully it will help when you doing the math: If your Outgo (money going out) is more than your income (Money coming in), you’re up keep will be your downfall.

It started in 1988 I got a book about no money down real estate but done nothing. In 2000 many people saw it, they wondered how I could not having reliable transportation can come up with so many properties and owners. I never made any money because I would turn the information over to the investor like a green rookie so guess the rest. In 2007, 2010 I kept doing the same thing over and over.

Fast forward to 2017 on the train a Tax Account told me that I have the gift of gab that I should go into real estate. Well I took him up on it. I started on Craigslist and I looked at You Tube Video’s on Wholesaling, I did the basics, look up owners, got involved with Wholesalers, and found out that many were just liars, giving the buyer the impression that they are buying the house I see allot of that. Some wholesalers’ are honest some very few. I can look and have looked at allot of houses that was just suspect in A.R.V’s, Pricing it’s just was not right. I mean come on a house that is selling for $38-40K being marked up at 300K in a rundown neighborhood? I mean I could see through that. The last few weeks I have talked to some SF Investors, and commercial brokers, many told me that Atlanta is saturated with allot of wholesalers, and many of them are inexperienced, some outright lie, misinforming and incompetent. I look at websites with property listings that they are trying to “sell” and found this to be true. One guy I see all the time get these houses, that I see are F.M.V at 40/50k mark it up 3 times that and post it on some litigate RE sites. A C.R.E broker told me that these wholesalers complicate buying and selling and that once he finds out they are wholesalers he cut them off.

Here is where I am at today as of now Dec 2017, in Oct 2017 I found a website about C.R.E Apartments, I made up my mind that I would go into Apartment property location and liquidation for buyers. I am religiously studying Peter Harris videos and books on C.R.E, Apartments, and the foundation of number how to analyze a Property. I am taking notes, looking at properties talking to brokers getting the numbers when they call back. One of my main rules is I NEVER, NEVER, NEVER make a blind offer without numbers and all information questions covered!

I created my own spreadsheet of numbers, an ongoing active Apartment buyers based on numbers, class, all the C.R.E basics, what to ask the broker. I will give a few examples of some of the Apartment inquires I made:

One was an X unit complex: I contacted the owner sent him over questions about the property looked at it myself attempted to do the numbers. Well the property was fire damaged heavily fire damaged basically a Class D the owner wanted 185K and stated that it would take 100K repair or more. I talked to an experienced building contractor he said that the property would cost at the least 250K to bring up to codes, fixing, major renovations would take place. Also I talked to an investor who bought fire damaged Apartment units and he said he would not touch that one. Now I am no expert but I know where there is fire damage and property loss a). Insurance will be an issue b). Banks unhappy c). A potential for legal action can be in the works especially if there is neglect next taxes the owner still have to pay taxes on a property that not producing money.Well upon digging further I found out the complex had been fire damaged over a year! Yes I passed.

Next inquiry: A Class D totally abandoned, I was told by the broker that the owner would not take nothing less than 350K, so I talked to a class D buyer and threw an offer of 343K and left it alone.

News Flash! In one of Peter’s video he said leave D Class properties alone, well I am learning that.

Next Property: a 330 Plus Complex almost the same area, but I went online found the owner, no broker, found that is was under contract basically the contract being held hostage by a “Wholesaler”. The wholesaler I could tell was very incompetent they regurgitated the information of the Property was listed as a Class A then read it was a Class C being repair to come up to Class B. The complex has a 9% occupancy below markets rents, cost 1M for repairs all kind of all over the place miss information in the description rents would be increased from 500 to 950 by putting in new marble counter tops blah, blah, blah wow I am confused trying to explain this one. Well one day I looked at the listing and it was SOLD! Yeah right,  on another website it was off market still to this day and I looked at the on County Records and still the same owner. A wholesaler messed it all up really there was no deal there again I passed. The numbers were not there.

Let’s go to one of my favorites I looked at another complex talked to the broker; I sent over some questions, strike one he never sent them back. Strike two I had to ask again for specific financial information that pertains to the property got a partial peace mill email. The numbers were not that great but I went on a fishing expedition just with the numbers got some feedback. Strike three is when the broker tried to rush me to get the contract and sign it. “I will send you over the contract let’s get it under contract. “

I read in C.R.E non performance you have to watch out for when signing any paperwork first as a property locator liquidator I never sign a contract unless written instruction from the potential buyer. The buyer will buy X.Y.Z property and given me permission to X.Y.Z put it under contract" as a part of the JV agreement. Only when a buyer authorizes me sign a contract in C.R.E will I do this. I learned this by watching a video on why C.R.E deals go bad, and on a C.R.E website about non performance.

First I leaned never make a blind offer, second when someone tries to rush you into signing a contract that is a red flag. Third the numbers were incomplete so I told the broker thank you and I am no longer interested well he came back and said I am a buyer too when can we get together I have some properties to sell I said no thank you bye.

I have been steadily inquiring about many Apartments looking over changing strategies now my thinking and approach is changing to more desirable area’s for Class B to C no Class D’s. This is a process, it is not happening over night now I am working on 3 more apartments in my own back yard as Peter says. I am 59 years old work a day labor job @ $8.00 hour, but I have a GOAL I will accomplish Apartment liquidation and make a consistent weekly income and wealth I can do it.