All Forum Posts by: Eric Herman

We have and pay for dumpster service actually.....

A current unit's breakdown is as follows:

Keep in mind this is with a total use of 0 CCF.

Residential Water

Service Charge - $22.52

Utility Tax - $2.25

Residential Wastewater

Service Charge- $ 13.24

Residential Sanitation

Garbage and Trash- $17.60

Recycling - $2.85

Residential Stormwater

Service Charge - 13.98

@JD Martin No we are not outside of the City of WPB limits.

I have also attached the Rate Sheet in case that helps. 

https://wpb.org/Departments/Public-Utilities/Billing-Payments/Rate-Schedule

Building Facts:
78 units
1. Each unit is separately metered, 5/8 (which is the smallest meter size).
2. Tenants currently pay for their own utilities.
3. City of WPB charges $72.44 in base charges. This is before any water is used for the month.
Is there a way to decrease the base charges from the city?
4. We have decided to start offering partial credits to tenants with proof of water bills over $100.
5. We are trying to stabilize the building, but the City has threatened to increase our service charge to $190/unit due to more frequent service (they blame it on tenant turnover). Currently we have no form of recourse if they do this, (is there one?), we have to pay it or they shut off our water for the whole building.

We have considered changing over from separately metered to one main meter. We requested a quote from the city to get an idea of how much it would cost us in water each month if we were to pay for the whole building. However, the City quoted us an exorbitant amount $500/unit for deactivation fees(a remote function). Could we install one 2" meter further upstream instead of capping all of the existing meters? Has anyone done this or been in this scenario?
I am currently talking to an engineer as well to see what other options we may have.

I am trying to obtain water bills from other multifamily buildings in the area for comparison, if anyone knows someone who could provide copies of water bills between October 2018 and July 2019 it would be greatly appreciated.

We are a multifamily residential building

I am not sure of the exact frequency, we have a couple buildings on site that they service and they have access to those areas. We are in the middle of stabilizing our building so they are complaining about high tenant turnover. But I have not heard of anyone else in the area being charged more money for a service fee. Is this something they are allowed to do?

Hello, 

We run a small building and have been having problems with our water bills. They are too high, $72 in charges without even turning a faucet on. We have problems retaining tenants because of it and it seems the city has been increasing fee's and costs on us. I am not sure if it is the same with other multifamily in the area, I will be asking around next week.....

Recently they have told us that they are going to increase the service charge by an additional $190 for each unit because they feel like they have to come out to the building too often? Can they do that? I thought that the city had to apply all fees equally in the area....we have to pay this bill otherwise our water for the building gets shut off.

Is there any form of recourse for us? Or any advice to help us resolve this issue? 

The property we're looking at is going on auction on the 27th.  However, it's already received several pre-auction bids. What does this mean? Will the bank be entertaining these prior? 

Ok, so I realize I am would be paying too much interest. 2% deferred on 24 months I would be paying a balloon payment of 16%. for a total of 20% for the 2 years.  and 15% balloon payment for 18months. Right?

Hey all, 

So I am relatively new to real estate investing. Currently I am raising money and I was told/read a solid strategy raise money was to offer a high interest rate. But because I will be renovating and the building I am buying with be in turmoil I am offering a deferred interest rate with a balloon payment contingent upon closing. So..just want to make sure I have the math for this worked out before I talk hard numbers with some PMLs. 

I am offering a 10% annual interest rate, paying a 2% deferred interest rate for 18 months, with the option to extend it another 6 months if necessary. At the end of those 18 months, I will be paying them the 2% annually, plus an additional 17% in a balloon payment?

On 2 years I would be paying the 2% annually and an additional 24% in a balloon payment?

Hopefully my contract will be accepted tomorrow for the property, there is a good chance of it, and its our first one so pretty excited and nervous. 

Thanks for the help!

Eric Herman