All Forum Posts by: David Gonzalez

Hello @Gregory Evans,

An other strategy I would look into is to use a Master Lease to secure the property. Basically you "lease" the whole building and you are allowed to "sublet" the Apartment homes to individual tenants. You structure it so its a NNN deal and you pay for every thing and pay the owner a guaranteed payment. What ever you make above your costs is yours to keep.

If you go this way be sure to have an option to purchase it. Once you secure the property you can start to add value and exercise your option to purchase it once you have the financing for it. 

@Brandon Turner has used this (and other techniques) to purchase his first Apartment. You can read about it in his book titled: How we bought a 24-Unit Apartment Building for (Almost) No Money Down: A BiggerPockets QuickTip Book

@Phil Christian I totally agree that Craigslist has fallen out of favor. 3+ years ago I would post an ad on Craigslist and a majority of my leads for the property would come from responding to the ad. If I wanted to get more leads I would re-post the original ad.  

What I feel is happening is that Craigslist is where people start their search for homes but not where they actually respond to schedule an appointment. I have worked at several apartment communities where we would loose traffic if we stopped (or slowed down) our Craigslist posting. Even though we were still on Zillow/Apartments.com we would loose traffic to our community because we were not posting on Craigslist. 

Craigslist is no longer the site that gives you leads but is the site where people know you exist and contact you on other sites. 

Any body have luck with Facebook?

Those stats go along with my experience as well. Apartments.com is a great one as well though the stats I have seen are better for communities that pay for it. I feel that the stats are understated for Craigslist and sign since many people will start there and research the home in other locations before contacting.

Check the state laws about what you are legally required to fix. Start by visiting the home and documenting the condition and go from there.

What kind of loan is it? If it's a short term loan sell it and move on. If it's a 30 year fixed loan you might consider renting it. Just keep in mind that it might take more then a year for the lawsuit to be settled. I would also consider the profit I could get today and where I would be able to invest it afterwards. Focus on your goals and every thing else will follow.

I would worry more about the deal and the terms of the loan. But if I had to choose I would choose FHLB. Since LIBOR is an international index I would choose FHLB rate since it would most likely match Americas Macroeconomic Policy/Condition.

It may be how you are marketing the rental, the rental price is too high and/or the area is bad. I feel landlords focus too much on a credit score and not on the report says. My experience is that people with really low credit scores have big financial problems.

It's a great idea but it will not increase the value of the home by as much as you project. People buying a home with an AUD will be comparing to other homes not an investment. I would sell the cash flow.

At many apartment communities in California they allow Bankruptcy as long as it's discharged. I would also average the scores out and look at the actual report and not just at the score. If you need extra security you can always ask for more of a deposit. Hard for me to say what I would do in your position (since I don't have all their information in front of me) but one positive thing is you have multiple sources of income. In this case the rental references would be extra important. You can always check to see if his prior landlord was included in the BK case.

I would check the following organization: http://www.aircre.com/ My understanding is that have a lot of forms for Commercial Real Estate. Also Google other CRE professional organizations and see if they have forms specific to your asset needs. Check Amazon and buy a book on Commercial Leases so if you hire an attorney or you customize your lease you will know what to ask/include.