All Forum Posts by: David Torres

 Mary Hewitt, first american

This is not a diy thing.  If you get this wrong there are huge consequences.

An escrow company can usually recommend an attorney.  

If they can't recommend one, reach out and I have a few options for you.

$500 for 2 doors is crazy.  

I always go deadbolt and a passage knob.  A keyed entry is just another way for a tenant to get locked out and provides little to no security (can be picked with a credit card).  Plus when it is time to switch out, you just need to switch the dead bolts

Cheap option - Defiant - Total Material cost ~ $55

Dead bolt https://www.homedepot.com/p/De...

Handle set https://www.homedepot.com/p/De...

Cadillac Option - Landlord Locks ~ $65.  Plus they can set you up on a master keyed system for your entire portfolio.  One master key and each tenant has their own unit key.  I even have it set up so the tenant can open their unit and the laundry room with one key.  Pretty slick

Deadbolt https://landlordlocks.com/prod...

Add in Labor - even if it is a master lock smith, should take them less than an hour at $100 per hour.  So all in should be less than $200, but any handy man (they don't even have to be that handy) can install them.

I know this shop - right next to the mountain.  Glad to see it is getting some love!

It really depends on what the reason for the eviction is @Katrina Dividina.  Depending on the issue, you may be able to get them out.  I sent you a DM with an attorney referral

Sandia CU would be my recommendation, but the underwriting for any local bank is going to be super slow.  They are all backed up with deals and it will only get worse since it is EOY and we have the holidays

Investment Info:

Single tenant 15,300 SF Industrial in a submarket of Albuquerque, NM

I started investing in 2013 in SFRs.  I would buy them distressed, fix them up, tenant them and put long term debt on them.  As we all know the market for SF has been on fire recently.  I wanted to cash in on the equity and trade up to a larger property.

Purchase price: $1,250,000
Cash invested: $50,000

What made you interested in investing in this type of deal?

Industrial has a lot of benefits

Rise in Ecommerce - For every $1B increase in online sales, 1.25M SF of industrial is needed

Last Mile Locations - lots of this product is well located.  It is basically a covered land play.

Purchasing below replacement cost

Sticky tenant base - most leases are 5 year term and go longer

How did you add value to the deal?

The building was in great shape, I was able to structure some creative financing.

I bought it vacant.  I did some simple things (painted the purple columns, cleaned up the yard and swept the parking lot)

How did you finance this deal?

Seller Financed Deal 

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I have some really great market specific agents and title agents that I work with on a regular basis.

What was the outcome?

I was able to 1031 2 homes in to this building.

We just signed a 5 year lease with a tenant.

I increased cash flow by 500% over the 2 homes I had before.

@Ryan Zamora great question.

To work with the bank before the auction, that is generally called a short sale. I don't know with the current market if the banks are working this strategy.

If you do go to the auctions, be sure to look up Redemption Rights.   This is a big loophole in NM that other states don't have.  There are a bunch of gotchas that you need to be aware of.  I did a presentation a while back, it is a little dated, but will give you the overall gist.  Send me a DM and I will get it over to you

It is always fun to go and watch the auctions.  I quit going a while back, there are some hedge funds that came in and are making some aggressive plays in the market.  Good luck.