All Forum Posts by: George G.

Hi guys. Here's an update from a previous post and also seeking some suggestions:

We are in the process of getting accepted on a 24-unit building in Texas. It's a hot market. The broker suggested we put $5,000 as non-refundable after 10 business days because our lender will take 45-60 days to get us the Fannie Mae loan. Since it's a competitive market, we don't mind it.

So the big question is what all should we perform in those 10 days to determine whether we will go ahead or not? After looking at all the closing costs, it's potentially pricey. We don't mind the closing costs if the deal is happening.

What all would you look at in those 10 days?

1. HVAC, Roof & Plumbing inspection.

2. PCA, Phase 1 & Appraisal after we are committed? These are pricey. If the inspection is good barring major defects, we are good to go. In that case, we won't mind these additional expenses.

Nope, it was seller and broker. No third party management (they didn't even have management fees in the expenses).

As for Schedule E, in the past I've heard this many times where they have other business or properties under one LLC so they can't provide that. I did however visit the property and interview tenants, building does seem 100% occupied because as a prospective tenant I was denied.

Almost everything is included in expenses. We are even using 55% expense ratio to be conservative.

We are in the process of submitting an offer and doing our own due diligence. I wanted to do a quick survey to see how you guys verify income statements and expense reports provided by the broker. Currently we have received an income statement in excel for 2016, a rent roll.

After we get it under contract, what's the best to verify? We don't want to scare them away. We do have our business plan to execute, so we are not super concerned with tenants and rent roll. We just want to uncover any big expenses or nasty surprises which would end up with us paying expenses out of our pockets after taking over.

Hi guys, my partner and I have submitted an offer on a Class C, 100% occupied building. 1969 built. Roofs done in 2003.

The NOI shown to us (without insurance) was $125k.

The asking price is market. We figured about 45k/door? Pretty centrally located. The numbers work well using a 55% expense ratio (although expenses shown for last year are about 30%).

Any suggestions on how to price for the LOI?

That's right. It's called investing. I'm a GP in over 1,000 units all in Houston. Our operations are solid and we are running them efficiently. As for the drop in oil prices, we have not seen drop in occupancy levels nor in rents. We don't Class A. It's true that Class A has taken a hit and there are many more that need to be absorbed in. But Class B & C, no issues whatsoever.

Houston sucks? You are not even in Houston. Houston's Class B & C market is great. This guy owns almost 8,000 units and buying more. Clearly they love it. Check this out-

http://www.chron.com/business/real-estate/article/Nitya-Capital-buys-two-more-apartment-properties-10917141.php

Great stuff. Congratulations on that.

I have this strategy where I am able to locate good properties that fit my strategy. Then I look up the tax records to get the owners information. Does anyone have suggestions on how to make offers to owners of these off-market properties and bring them to the table?

1. Should I find an agent to represent me and make offers? If so, why would the owner agree to pay this agent the commission?

2. Or should I mail an offer to the physical address? Perhaps make a "very good" offer to bring them to the table and then resubmit an offer price after I get some financials?

I've invested in several deals with Nitya Capital in Houston in large apartment complexes and have learned tremendously. 

Would you like to hear what you guys have to say.

Hi, my partner and I are in the process of getting our first deal. Since it's our first deal, we want to start small. So ideally a 10-20 unit, under $700k-$800k. 

This is in Houston, TX. Our credits are perfect and we have the cash to close. But the securing financing is becoming a little hard. Does anyone have any ideas to secure sub-$1mm loans for multifamily assets in Houston, TX?

We are looking for competitive terms so that the cash flow still makes sense. Even .5-1% can kill a deal. 

Please, any suggestions, tips, comments will be helpful. Trying to close something before the holidays.

 He is an independent broker with his own little firm. Solo practice. The owner is 85 something years old. It's a good deal for us as we know exactly what to do and have researched the hell out of it. Even at asking price it's an amazing deal. Should we just go in with asking price? I know I'm not giving much to go off of. It's a $500,000 8 unit property. Owner has owned it for 30 years. We can drive revenue and cut some of the costs to improve property performance.