All Forum Posts by: Idan Zur

Hi

I live in hutto close to round rock.

Have you consider do a combination deal with developers regarding your land in round rock?

You will give them the land to build and they will build improvements on it and you guys split the profit and equity? 

I also have access to the mls at sherman area

Feel free to leave me your phone num

in south killeen (closer to austin)  for less then 20 years old properties there is definitely a significant apprichation increase in the past two years for all kind of income properties 

Hi Wayne.

I own apt complexes and fourplexes in killeen and im also a real estate agent. I know the market and the possibilities well.

I also live close to austin in hutto. 

Leave me your phone num and best time to reach you and ill advise you 

sure.

Here is an example so you guys will understand what i mean and this is a common scnerio that i see:

Investor buy an apt complex owner financed for a 1m$ With 900k debt and five years balloon

(Sometimes the investors get a balloon for three years!!! May god help them !!)

He didnt bring an appraiser because it is owner financed but its actually worth 800k.

(I have access to appraiser info and The old apartments in killeen dont worth more then 20k a unit but buyers cant belive the value is so low and they overpay)

Then about five years after , before the balloon expries - the refinance bank's appriaser find that the value is only 900k including all the renovations and additonal profit the investor created . 

It means that the bank will only be able to refinance about 65 percent of 900k which is about 600k only! (When the debt is 900k!!)

If the seller is a predetor like majorety ARE!!!- the investor will lose all of his investment !

Again, i see this scnerio a lot !

Taylor, 90 plus percent of my units are apts and the rest  are 2 fourplexes.

I dont think that sfr are cashlowing unless you buy them really cheap and they are in good condition (very rare)

Fourplexes are better but its cashlowing much less And it still takes about 3 months to close.

Let me know when u are in killeen and ill let you buy me lunch and ill explain 

I am benefiting from owner financing but most of the COMMERCIAL conventional mortgages have balloons also.

However my huge concern for new investors is about the owenr financing balloon.

There is a lot of over confidence and nahivity by buyers unfortunately and a lot of predetory owner financing 

There will be a big amount of "causalties" 

Under this inflated conditions

killeen is a good market to buy income properties (i own 127 units here) as long you do your due diligence prior to closing and make sure that the property will be cash flowing

60 percent of the properties here are being offered for prices way above the appraised value and debt service will be too high to make cash flow.

BE SUPER CAREFUL FROM BALLOONS because they will likley destroy you.

However there are some good deals as well that you will need to find.

Great to hear you got so much drive and passion towards r.e investing ! i wouldn't do any other vocation !