All Forum Posts by: Austin Freeman

I am looking for a reliable dumpster company. The first one that was recommended to me was 4 hours late yesterday and had half the size of the dumpster that was actually ordered. The second one called this morning and said the dumpster he was going to send us hasn't been picked up yet.

A lot of promises but no follow through, a bit disappointing but expected. Would anyone care to share a recommendation on the subject? Thank you!

@Hai Loc I was presented with an unsecured business LOC and was told it would be in the form of multiple business credit cards. One way to convert to cash is to have a vendor charge your card and have them send the 'cash' to your bank account. I felt this was rather fishy and didn't know if anyone else had dealt with something similar.

@Antoine Martel were you given multiple credit cards? Just wondering what the format was like. Thanks!

Hello BP, We are trying to work with Chase Bank on a short sale. The existing mortgage is around $80,000 and we offered $25,000. We sent a preliminary letter of disclosure for potential short sale and are waiting to hear back. The issue is that the current owner (not occupying) is still making mortgage payments, so the bank thinks everything is alright. What they don't know is that the house has been deemed unsafe by the city and we've talked to the building commissioner to hault tearing down the property. Our understanding is that the bank will have to send out a broker to appraise the house in order to move forward. Is there any way that we can assist the process and for lack of a better word, "convince" Chase Bank that they should accept our offer or at least negotiate with us? Note: The owner wants to sell asap to get the property off his back and has verbally agreed to our offer. I know that doesn't mean much other than the fact he is motivated and the decision is up to the bank now. Thank you! -Austin

Hello BP,

I am looking at a short sale and have looked through the documents on the auditor's website and found something interesting. One of the documents is a lease from 10 years ago to a statewide oil company. The property is just over 1.5 acres in a fairly suburban area. The current owner is about 97 and cannot remember what the situation was. 

My question is if there is still oil on the land, will it affect any part of the sale?

Thanks,

Austin

Hello BP,

I'd like to first say that I am working with my father on this deal. It is a 66 unit apartment complex with garages for extra income. He is actually doing the accounting and management full time for the current owner, who is ready to retire and travel. Our only issue is the financing aspect, which we would like to avoid pursuing seller financing.

I'll get right to the point; here are the numbers (calculated without P&I):

Purchase Price-           $5,000,000

Monthly Income-        $49,800

Monthly Expenses-     $21,800

Monthly Cashflow-      $28,000

Annual NOI- $336,312

*This is just an extremely condensed format of a 4 page income statement. I have accounted for maintenance, turnover, payroll, bad debts expense, insurance, marketing, and various other miscellaneous expenses. The only expense that I did not include is the principal and interest.*

I would like to poke around to see if there are any options other than seller financing or traditional financing. Traditional financing of the full $5M at 4% would turn the annual NOI into around $52,000. This is feasible, but we would like to explore other possibilities.

I am extremely interested to see what anyone has in mind for this deal. I would be happy to include anything that may be missing or unclear.

Thank you all very much for what you do for this community and Happy New Year's!!

Hello BP,

I would like to network with other property managers that may use Propertyware RealPage software in the Cleveland/Akron area. This would entail potential consulting engagement. 

Thank you!

Austin Freeman

@John Horner That is the maximum and considering how nice it is, they will most likely be there the whole term unless I have a reason to not let them renew. I thought it still cash flows a decent amount without a fifth tenant.

@Robert Ellis I really like how it is a turnkey, being that I am still a full time student. It's also within 5 houses of my other rental in the area, which will make managing a little easier. When you say around 40k per bed, are you looking at primarily properties that need a little rehab? Thanks for the reply!

@James Wise Hi James, this one is actually in Columbus where I go to school.

Thank you Robert, now I have to figure out how to refinance and return to my investors!