All Forum Posts by: Brian Cain

Hello BP family. I have an opportunity to purchase a 10 unit apartment building in Riverside, CA. The owner is ready to retire and part ways with this property asap. Ive been in contact with the owner for 2 years now and now there finally ready to sell. This is a textbook situation, property management sucks (their words) and pain in the butt tenants (again their words). Super distressed seller. Ok here is the issue. Out of all  10 units, none are permitted, that's right none. The property needs some work, tenants are month to month, and kind of a headache. The owner wants to do a 1031 but cant find another property they like. With that there open to seller financing.  Im not looking to keep this, just a quick flip.

Rough numbers:

The seller is asking for 2.5M. With all the problems I countered with $1.3 and seller financing  

The property brings in $190,000 annually. The snapshot below are my very rough calculations. I have it at a 5% vacancy, and expenses at 41% (overkill yes). From you pros out there would you still peruse this with the unpermitted units? Thanks BP 

Hello BP friends. I would appreciate an expert's opinion about a fortunate situation I'm in. I'm starting my own family-owned real estate investment company. To summarize, I want my entire family to be a part of this endeavor where we purchase and hold the property for the long term creating generational wealth. Here is the situation. As an investor myself, I've always loved the business of real estate. Due to their advancing age, my parents will be leaving all their property to us, the children. My parents will leave 3 residential homes and 2 commercial buildings. Over the next few years, I hope to leverage this opportunity to grow the portfolio. They're alive and well now, but they want me to manage the properties and expand the family portfolio. Since I am not trying to start a property management business, I would probably outsource that section to someone else. I'm mainly interested in finding new properties and land to invest and hold. My future focus would be on purely commercial properties, such as apartments, mobile homes, commercial warehouses, etc. I am sure I left out some additional information, so I would appreciate an expert's opinion on how to proceed. Happy Holidays BP peeps!

@Casey Powers Hey Casey. The property is in Ely, NV, roughly about 3.5 hours from Vegas. Are you familiar with this area?

@Jake S. Wow you dropped some real gems Jake, thank you. From my reaserch current cap rates in the area are around 8%. I plan on using a mangment company and didnt budget for that so good call. This town  is a small quiet mining town. Average rent in the area is around $700 - 750 per month. Current rents at the property are $500 per month so theres room to grow. Seller wants all cash offer for faster closing. Yet another red flag.

@Andrew Fernquist Great advice. From what i understand the gentle is 70 years old and ownes this building  and a motel in the same town. He's tired of the business and looking to retire and possibly relocate. There are no offers as of yet. He reached out to me from a letter i sent. He says if we cant close then he will just list with a broker. The returns look good on this deal but all that glitters is not gold. 

Hey BP family. I have a deal in which a contract is close to being signed, all-cash deal. The return looks great but for some reason, red flag are coming up. Heres the run down. This apartment building I'm interested in is in a rural part of Nevada, the population of about 5000. Ill put the breakdown of the deal below. Keep in mind this will be my first deal. In my contract i put  "Agreement is contingent upon the Property appraising at no less than the specified purchase price". Seller wants this removed. Mind you the last time is was appraised was back in 2006 which that is what the offer price is being based on. He wants me to put in the contract that I agree to buy as-is. Not sure if that's a normal request. Also just found out one of the units needs complete electrical rewiring. To me, he seems like he wants to close fairly fast without proper due diligence period. Feels rushed. Like I said I'm new. This may be the norm but I wanted to run it past you guys first. Thanks for the help.

14 unit 

Sales price $565,000 (Cash Offer)

Total monthly rent $6720

Annual Gross $80,640

Expenses $27,000

@ 5% vacancy NOI will be $49,608

@Greg Dickerson @Craig Bellot @Trevor Ewen Hello gentlemen. First off i want to thank you all for this priceless information. It really shows the value BP experts like yourselves bring to the site. @Greg Dickerson mail is definitely tried and true for me. I never thought to contact appraisers and inspector. I will definitely add that to my arsenal. @Craig Bellot your absolutely correct rarity and bring the value to an audience is key. I like the idea of the calculator as I've created my own that I absolutely love. I'm reviewing my social presence to see where I can separate myself from the pack. @Trevor Ewen never thought of doing an AdWords campaign. I need to educate myself more on the benefits of AdWords. But you're correct I need not get sidetrack from my ultimate goal. Once again thank you, gentlemen, for the great advice.

Hi there BP family. Question regarding online marketing. For some time I've been doing direct mail with some success. As we all know it can get a little costly. I want to start pulling leads in from online marketing. My focus is solely apartments. I just launched my We Buy Apartments site. I know the We Buy Homes work in residential but are any of you seeing success with these sites in the Commercial space? If so how are you drawing attention to your site? Any feedback would be great. Thanks BP!!

Hello BP family. I have a multifamily unit I'm eyeing in Ely, NV but I'm not too familiar with the market. From what i gather its a copper mining town. Anyone familiar with the market out there? The numbers look great but with the town being so small I'm kind of worried. If you're familiar with Ely, Nevada i can sure use some advice. Thank You