All Forum Posts by: John Bowen

Wait till your buying for near the coast. We have a SFR and a 25,500 sq ft industrial complex both with in a mile of the bay. Wind storm alone is $1,100 on the SFR and $16,000 on the big metal buildings.

I give them to Heather and she enters them in the system. I am not allowed to file anything or pull anything from a file. I ask for it and put it in her basket when done.
Thank God for Heather.

Closer to Galveston sounds great to me :)

We just secured an SBA loan. 15 year 5.5% fixed on bank half 20 year 5.5% fixed on SBA half. $450K each.

The earned income levels are partly why we recently purchased an industrial complex to rent to our major income industrial business. This will hopefully allow us to shift income to an entity taxed at a lower rate by owning both LLC's and charging the major income business a healthy fair market rent.

I grew up with Mom being a realtor and her owning many SFR. When my business started doing well I used profits to start investing in real estate. As an investment vechicle I understand it. No matter what happens to the value it's real, there, and you can go jump up and down on it instead of watch zeros drop from an account screen on the computer.
That and I love to get a screaming deal on something and turn it into positive cash flow. It's our long term retirement program as well.

We have a pay cash, buy and hold strategy. We expect to have an ARV of 30% above cash invested. This normally allows us to refi and get almost all our cash back out, Then let the tenant pay for it.
Of course some of these have been some very extensive rehabs to reach that goal.

It was an SBA loan. The whole note is for $900K. $850K purchase price, $50K for improvements. 50% carried by a Texas bank, 15 year at 5.5% fixed. 40% carried by SBA 5.5% fixed, 20 year. 10% equity injection on our part. We will probably spend the $50K and another $50K out of pocket for the remodel and improvements. The place appraised for $1.1 as is and $1.2 after improvements.
Much of that will be equipment for our primary business to function well. Things like overhead cranes and a paint booth.
We may do a few capital improvements to the complex to raise the values (and rents) on the 12,000 feet of rental units.
It has 1 building that is 13,500 sq ft that we will occupy and a 12,000 sq ft building separated into 3 units that is 50% leased.

Most of the good deals here that hit MLS show pending right away. Quite a few houses under new construction as well.

Finally closed. Ended up getting half of the back due rent. Got hosed for a grand. We will see how the tenants want to act on the first of the month.
At least we now have a much bigger home for our primary business along with a 12,000 square foot building that is 50% leased and have someone interested in the other half.
Thanks Bigger Pockets.