All Forum Posts by: Josh Rich

@Joel thanks again for sharing. Do you only work as a broker in GA? Maybe we could connect and explore opportunities sometime. PM me if you're interested at [email protected].

Are there any dangers hidden with Letters of Intent I should watch for before I sign it?

Gabriel,

Thanks for making the efforts to post your journey. Its a great way to find buyers, because I am one of them! Please add me to your buyers list and when you have the properties rolling in, let's talk.

By the way, that took us to Sugar Land, TX (via Los Angeles). Now we live in San Diego. Today I surfed for an hour and I find myself thinking everday how blessed I feel to call this little piece of paradise home. I imagine some people might hate living here, although I've never met any. To each, his own.

A few year back my wife and I were in a similar situation. First, I agree with Ali. Live where you want and invest (with a team in place) where it makes sense.

That said, what we did was take a week vacation and visited several viable cities, tried spending a day or two in each to get a feel. Meet with a few people and ask their thoughts. Checked, greatschools.org. Then went on the feeling of what was right, after doing our homework.

@Joel thanks for chiming in here, your wisdom is much appreciated.

Yes, I thought the same with him being my "buddy" at his price, but maybe not at the right price. Good call.

As you said, I believe the sub-metered water is billed back. The seller said that there is a valve that monitors tenant use and they are charged by the 3rd party valve monitoring company. Presumably, the owner is on the hook and seeks monthly payments from tenants to reduce expenses. That said, how could I account accurately for this expense? One of the largest incidentally.

As far as financing, I lender I spoke to out of MD said he could finance 75% LTV with 10% down and a 15% seller carryback. He quoted a 5% 10 yr fixed rate and 30 yr amortization. That's all I know. Is that unusual? Should I further clarify if it is a "mezz" debt second? By the way, what is that?

Yes, I agree that I need to see 2 yr tax returns on this property and bank deposits, which I asked for initially. He wants me to sign a LOI before providing me with more information, but said he was willing. Is that typical?

The LOI has me a little worried. It states the purchase price at $2.1, assuming a 10% cap rate and asks for a 5% deposit ($105k)! That seems a little steep to initiate the deal. It says it is refundable, again, is that typical? What dangers should I be watching for in a LOI?

Unfortunately, I am not working with a broker other than trying to nail down CAP rates. This property is "off-market" and was brought to me from a wholeseller. Tell me to run for the hills, and I'm gone. If you think it's worth pursuing, please let me know.

Once again, my BP friends are there for me...thank you, Thank You, THANK YOU!!!

Thanks again. Talking with other PM's is definitley on my list of priorities. Great thoughts about the exterior, I didn't consider the future paint costs involved because it was recently painted.

Jean, thanks for your insight! Although the area is "affordable housing", it is not slums. The project is targeting toward working families.

That said, the rents are below market and should be closer to $700-$800. The cap rate is a bit above 10%, and I don't see the reason in paying the full $2.2M when NOI is roughly $175k-$200k.

@Jerry thanks for being the first to post!

Yes, I have spreadsheets for the last few years that were sent, but no tax returns yet. Great reminder, thanks.

What documentation should I ask for to prove tenant payment? I have rent rolls, but of course that's not the same thing as proof of payment.

Cap rates look to be about 10% for C-class in W. Charlotte on the MFR's. Anyone care to enlighten me further?

I will reach out to Jean. What is Joel's last name?

Thanks again, Jerry.

@Richard did you ever find one? I'm just starting to look myself.

Thanks in advance.

Anyone willing to make a recommendation of a great property manager in the West Charlotte, NC area? (near the airport)

The property is a 56 unit C-class apartment that has suffered through some eviction headaches and a couple code enforcement issues.

Thanks in advance!