All Forum Posts by: Jace Holt

@James Ragsdale I'm not sure what their terms are for 2022 but for my project, they provided 80% LTC on the purchase and 100% on the renovation costs. Upper 8% on interest rate and 2 point orgination fee. They do have mutiple products available but this one was the best fit for my project. As far as vetting them, they checked enough of my boxes and I took a chance on them. They were very responsive to phone calls and emails which is important to me. They funded the deal at closing perfectly normal.

Rexburg was adding to the demand on rentals in east Idaho. I brought on a research team did a full rental market analysis of Rexburg designed to be used 24ish months ago. There was virtually no vacancy. Worst case was 97% occupancy. 5% of the market was 3 beds. The rest was 1 and 2 beds and a few studio. There is a lot to unpack and elaborate on in what makes the Rexburg market function but to make a long story short, they are so full, many students/workers are commuting from Sugar City, St. Anthony, Rigby, IF, etc. Currently there is very high vacancy especially in "approved housing" because of the reaction to COVID, but that can change quickly on whim depending entirely on policy changes by a single government official or the school officials.

The greater Idaho Falls area is booming with no signs of slowing down that I am aware of. Prices on property have appreciated dramatically year over year. Rents have increased as well. Most all of east Idaho has moved out of what I would determine to be a cash flow market. Development has been very big. In IF and particularly in Ammon, there are large developments still being planned and built and there seems to be an increasing shortage of "low cost" housing. Idaho has the fastest growth rate in the country, and it's not even close (#1 Idaho 2.1%, #2 Nevada 1.7%). Melaleuca and the Idaho National Laboratory, which are two of the largest employers in the region, have recently seen growth and expansion. 

Fundamentally, I do not see a way the demand for rentals can decrease which in turn means I would not anticipate an increase in vacancy and rent drop.

  

Yes, I bought an apartment complex in Oklahoma with them last year. I highly recomend them.

My units are outside of Lawton, but I have reviewed hundreds of units to look at buying in City limits. Occupancy in Lawton has been a struggle throughout the city but I think it has gotten a little better this last year. According to multiple local real estate people, it was caused by overbuilding on Ft. Sill. If you can get the property for a low price, you can offset the occupancy issue and boost the effective cap rate. Margins are thinner so you need to be focused on being lean in operations. I'm currently considering buying some complexes in Lawton that are value add. I'm looking at properties where I can at value with some capex but also with changing up operations. Lawton has reputation of being rough. There is some new construction and growth with nice homes on the south west part of town. There are nice new home developments up by Fletcher and Elgin.

Hi, I own apartments near Lawton. If you have any questions, feel free to ask.

I tried to raise money this last week on a larger deal and one piece of feedback I got was your second point. There was anticipation of desperate sellers in 90 days.

Earlier this month, I put together another big apartment turnaround project with great returns. When I went to raise money this last week, everyone was reluctant invest because of uncertainty surrounding the economy. The money seems to have all but dried up for the time being. Is anyone else having this issue? Any predictions on what will happen going forward?

I know this was posted about a year ago, but I have a $1M+ loan through AMZA. They have been super solid to work with. 

I went to Lawton to shop for apartment complexes last year and I saw the nightmare @Layne R. described. Rents were through the floor. Vacancy has been horrific. Everyone I spoke with blamed it on Ft. Sill. The story everyone said was apparently the government built a bunch on unneeded new housing on the base. When the "higher ups" came to visit the base, they asked why no one was living in the housing. They subsequently required soldiers to fill up the housing to make it full. That supposedly wiped out the rental market and sent everything into the downward spiral of lowering rents, not fixing up property selling at a loss. 

I ended up buying nearby but not in Lawton. Now that being said, I have had time to sit back and watch Lawton, I think I have figured out what it will take successfully buy profitably in Lawton. Like @John Plumstead said, the higher rent does help, and that requires a much nicer unit. When buying C class, the margins are much thinner per unit than normal so you have to run it very efficiently. Going forward, I'm going to buy complexes in Lawton when the deals fit my numbers and specific criteria. 

@Matthew Paul  You are correct, the lien covers the entire apartment complex.