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All Forum Posts by: Bill Spell

Bill Spell has started 2 posts and replied 25 times.

Post: Apprasing MF in downtown Americana

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

ultimately it's going to come down to NOI and a cap rate for valuation but assuming you are going to use bank financing, they will want to see an appraisal. I could probably help you out a little more if I knew what your plan was. Buy/hold as an existing income seeker or will you be looking more for value play that you can renovate then either hold or flip out of?

Post: Multi-family Real Estate Broker - Greater Houston Area

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

@Kendra Limbrick I don't know any brokers that specialize on the North side.  Sorry.

Post: Need Help from a lawyer

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

@Joseph B. Davisson Good call on the release.  I'm sure that's Lawyering 101 but very good to remember.

Post: Need Help from a lawyer

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

I am not a lawyer.  I have been a multifamily landlord for the last 4 years and negotiated commercial leases before that.  Before I go on, without seeing the specific lease, everything below is just what a lease will normally say.

1. Most leases and contracts will spell out where any legal actions have to take place.  You will typically find it in the last 1/3 of the lease somewhere.

2. It is not illegal in Texas to withhold late fees from the security deposit.  Unless the lease specifically says you can't and assuming the late fees are not unreasonable, you should be OK.

3. You likely could sue them for late fees if you determine you can't withhold from security deposit but I'm not sure it would be worth it.  Legal fees would probably cost more than the late fees amount to.  Most leases do not require demand for late fees.  In the Texas Association of Realtors (TAR) promulgated lease, it says "If Landlord does not actually receive a rent payment in the full amount at the designated place of payment by the _______ day of each month at 11:59pm, Tenant will pay Landlord for each late payment...."  Notice it says "Tenant WILL pay".  It says nothing of Landlord having to make request for said late payment.  The Texas Apartment Association (TAA) lease is similar.  It says "If you don't pay all rent on or before the ________ day of the month, you'll pay an initial late charge of ____".  Further, both of those leases explicitly state that the Landlord can deduct late charges from the security deposit.

I feel confident in saying that if you used either of these lease forms, you are in the right unless your late fees are deemed unreasonable.  "Unreasonable" is a legal term but as long as you can show they are not out of the ordinary, again, you will be fine.

You can read the Texas Property Code relating to late fees here: http://www.statutes.legis.state.tx.us/Docs/PR/htm/...

You can read the Texas Property Code relating to security deposits at the link below.  This encompasses several sections but starts here:  http://www.statutes.legis.state.tx.us/Docs/PR/htm/...

Post: Multi-family Real Estate Broker - Greater Houston Area

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

Your criteria is way too big.  I could point you in the direction of a good broker if you could give me a more narrow criteria such as how much you are looking to spend or what class of project you are looking to invest in Etc

Post: Question about Lifestyles Unlimited

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

I wouldn't put Lifestyles squarely in the "Guru" camp.  They are a local fixture and have been around Houston for many, many years.  I have attended some of their meetings and I can say that they preach solid advice.  I personally know a couple of people who have joined the group and benefited immensely.  As long as you are willing to plug in and work with their mentors, I think someone with little experience can benefit.  I personally did not get much out of it but I had experience before walking in the door so I didn't see a benefit, however I see the value in what they do.

Post: Downsides to Private Money?

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

Are there any potential downsides to securing a private loan (from an individual) with the asset via a deed of trust vs. a personal private loan in a flip?  I'm thinking 2 to 6 month hold on single family.  Obviously there would be a small added expense to have the deed recorded and the lender could foreclose if you don't perform but I can't think of any other.  To me, it seems you would want to go the deed of trust route to give the lender peace of mind to feel more confident in making the loan.  Am I missing any other business or financial risks or costs?

Post: First Rehab under contract!

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

That sounds like what they used to do with late 70's construction for the formal dining room.  Most homes I see with owner occupants convert that to an office similar to your #2 option.  If you are going to convert it to a bedroom, make sure you deal with permitting otherwise you won't benefit on the appraisal.  Bedrooms require two points of egress (at least in City of Houston) so make sure it has an operable window if that's the route you decide to take.

Agree with others.   We have four small MF properties under management with four different management companies and in all four cases we provided an initial deposit to fund an account they use for expenses.  If cash flow is negative,  our contact requires us to maintain a minimum balance in that account.   Assuming cash flow is positive, mgmt Co will pay all the bills,  lease units and send us check and a reporting package at the end of the month to account for everything. 

Post: List Size

Bill SpellPosted
  • Investor
  • Houston, TX
  • Posts 25
  • Votes 10

@Nathan Weaver I just came across this thread and i love the idea of the thank you note sized card without sealing.  What company did you use to produce that for you?