All Forum Posts by: Account Closed

Hi BP community,

Does anyone have a simple joint venture agreement that you're willing to share?  I'm just wanting to do a flip with my financing and the other investor's sweat equity.

Thanks in advance,

Greg

@irene,

Please email me your list. I'm interested as well.  [email protected]

Thanks, Greg

Thanks all for the quick feedback!  I love this community that genuinely likes to help!

@Kami S. Thanks for the encouragement BTW.  1.   My exit strategy is to flip since I can't make the rental numbers work.  As for a second exit strategy, I don't have one yet.  Any suggestions?

2.  @Kuba F. My partner has walked the property, here the photos.  Since this is a flip with a 10 year old roof that looks ok, I'm not going to replace it.  https://www.dropbox.com/sh/x32gcuxhvopoh5v/AABOSlk...

Our rehab cost of $35k is higher than their $25k due to requiring 21 piers for the foundation at the back of the house. I estimated $400 per pier.  But now I looked at it again, it's more like $42k with the 10% contingency.

3. Thanks for the input on closing costs and holding costs.  Yes, I was planning for worst case of using hard money ($50k worth @ 12%).

4. @Scott Harper Thanks for the suggestion, I will most likely renegotiate now.  That's if they call me back at all!

So it looks like the purchase price is now $125k with all y'all's input...

5. @Shaun Vembutty Have you done comps in this neighborhood before?

So I just made my first verbal offer on a potential flip. Then I realized I need to get others to look at my analysis! Would you take a look at this analysis below? I based on ARV from the MLS, and also a friend of mine recently bought a place nearby as well. Any input would be great! Thanks!

https://www.biggerpockets.com/calculators/shared/545037/e4a6852a-3567-46ed-8a3e-3af20ff76352

@Tyler Dreher no problem.  I feel like the biggest hurdle for me in thinking about Airbnb is that you're essentially a hotel owner, which is more like a job.  And you have to fully furnish the whole place, which can be costly.  But I think if all the systems are in place, it can be a great source of income, especially with the supebowl coming!

@Tyler Dreher There's a webinar tonight on this from RICH Club actually:  https://www.meetup.com/richclubhouston/events/2359...

We actually did it with our home once when we were out. Checked with the HOA and didn't see anything. The income was good but the taxes were high at the end of the year. I didn't find anything myself on Texas law that prohibits it, but I'm no lawyer of course.

@Jonathan Williams thanks for the tips. I need to learn more about IRR and will try out the calcs. As for the architect fees on a fourplex, you are correct that it's high. I forgot to adjust the fees because it was based on a commercial multifamily. You don't need a licensed architect to design residential construction (per building code). But once you get into 5+ multifamily building, there's more liability in building codes such as life safety and fire protection, and that's when the design team fee rises.

@Jonathan Williams @Kevin Wood I'm really curious about how rentals do outside the loop, because I keep seeing new commercial and residential developments in areas like Pearland, Katy and even Spring Branch.

Honestly, I'm wondering if just jumping straight into acquiring a small C to B class apartment complex (requires quite a bit of learning that's different than SFR). Since there's so much competition for A class rentals, I'm wondering if it's affecting SFR rentals as well.

In regard to building a fourplex, I have done some very preliminary analysis on building new 5 unit apartments, but I'm missing pieces of the analysis. Such as: how does HCAD appraise new construction tax? (which affects the cash flow significantly). It seems taxes on new construction eat a lot into NOI and reduces the cap rate. It looks like doing 10 units or more makes more sense.

@Jonathan Williams thanks a lot for posting about your build and sharing the rental chart.  I've been trying to do my own analysis on finding a target area (but getting nowhere) but yours is really helpful.  What do you think of the area between Heights and Northside (brown area on your analysis)?

@Kevin Wood thought you might be interested in Jonathan's post above on new construction.

@Jason Tucker I've never personally built a new apartment from my own funds, but I design and done construction administration on 5 of them so far. They range from 12 to 325 units per project. Of course the costs range widely and dependent on your labor costs in the area. Building new is essentially real estate development, which is quite different from REI. From what I'm learning it takes a lot longer due to financing, construction documents and permitting for new commercial construction.

What I'm trying to do in development as well in building a small multifamily (10-20 units) is that it requires accredited investors.  And here in Houston the property tax is quite high, thus we tent to build large complexes here (economy of scale to offset taxes).

Hope this helps.