All Forum Posts by: Daniel Schiller

Keep an eye open for deferred maintainance issues on the older MF properties in Montrose / Midtown / EaDo.  

Good luck!

Daniel

Hello Adrian,

You picked a great time to get into an interesting market.  I think we will see some unique opportunities in the next 6 months.

Cheers,

Daniel

As we all sit in anticipation of what the crude collapse means for the Houston market, has anyone had issues with appraisals coming in underwater? I noticed the HELOC market begin to dislocate between pre-approvals and appraisals over the summer, and just last night heard a story about a home in the Memorial Park area coming in $200k below contract price - the buyer was ecstatic to walk away.

We have a maintenance person change AC filters every quarter or month depending on the property, and use this as an opportunity to look for any unreported issues.  This is especially important for student housing, as some kids are inclined to turn a blind eye to small problems that can transform into big issues.   Paint and some of the other items you mentioned can be resolved at turn with the security deposit and legal action if nessesary.   

mole = ample.   spell check with humor.   

Most conventional lenders will not write a non-recourse loan until the LLC is well established with mole collateral. Until then, it's personal guarantees if you want market rates.

Dirk,

You should always consult with a bankruptcy attorney if you view that as a counter-party risk.  Also, if you have knowledge of the seller's impending BK / distress, the deal can be viewed as a preferred transaction and immediately clawed back by the trustee.  

Be careful.  

Daniel