All Forum Posts by: Josh Welch

Hi Alden, not yet. Happy to discuss further if you want to email me [email protected]

I see that you live in Humble not too far from us!

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Three Pillars Capital Group is seeking to fill the last remaining spots in a value add apartment deal in Houston. This 520 unit complex will be totally renovated to push market rents up 20% from their extremely under market rents. Deals like this are extremely rare to find where such a large difference between market and actual rents exist. We are a seasoned sponsor and operator and average well over 10% annual distributions to our investors every year based on our track record. Here are some deal highlights:

- Only room left for 7-10 investors. Most of the equity has already been raised.

- Purchase price: $44,200,000

- Renovation Budget: $10,000,000

- 8% preferred return, 20% IRR, 5 year hold

- Proven execution on sister property from the same owner on same street. This property has already generated 4% of distributions in 6 months of ownership. Rents have been increased on 30% of the property 15-20%. Same business plan applies to these new properties

- Accredited investors only (must make $200k annual past 2 years, or net worth of $1M)

Please reply to Josh more information. Must have commitments and funds in by next Wednesday, Oct 14th.

CLICK HERE TO SEE MARKETING VIDEO

Three Pillars Capital Group is seeking to fill the last remaining spots in a value add apartment deal in Houston. This 520 unit complex will be totally renovated to push market rents up 20% from their extremely under market rents. Deals like this are extremely rare to find where such a large difference between market and actual rents exist. We are a seasoned sponsor and operator and average well over 10% annual distributions to our investors every year based on our track record. Here are some deal highlights:

- Only room left for 7-10 investors. Most of the equity has already been raised. 

- Purchase price: $44,200,000

- Renovation Budget: $10,000,000

- 8% preferred return, 20% IRR, 5 year hold

- Proven execution on sister property from the same owner on same street. This property has already generated 4% of distributions in 6 months of ownership. Rents have been increased on 30% of the property 15-20%. Same business plan applies to these new properties

- Accredited investors only (must make $200k annual past 2 years, or net worth of $1M)

Please reply to Josh more information. Must have commitments and funds in by next Wednesday, Oct 14th. 

We are closing on a 25 unit class C in Houston and our price is about $440 a door. It depends on a lot of factors already mentioned but $400-$450 is a good range to use in your underwriting if evaluating class C. And this is post Harvey....

Kim Meredith Hampton thanks for the reply. So you're saying as long as it is outlined in the application and explained to every applicant when they apply, the fee can be non refundable? Also, I read your bio and would love to connect with you offline. Most of my rentals are in Orlando and am looking at other prop mgmt solutions.

Hi, Does anyone know the legality behind accepting multiple applications and hence, fees when there are only a few vacant units in a multi family and the units fill up quickly? Do you have to refund applicant money that came in while you were qualifying the candidates that eventually became tenants? We are thinking of doing an open house type of viewing for a newly acquired multi with some upcoming vacancies. Thanks in advance! Josh W

I'm sorry to hear about this terribly unfortunate circumstance! I had a tenant one time that I did not screen at all who turned out to be a nightmare and cost me thousands literally. I was co-habitating with them at the time and on the phone she seemed great and I was eager to get the place rented out. Little did I know within 5 mos, she would fake disabilities to get $ from the govt, call code enforcement to make it that much harder to evict, and deface and damage the property (We're talking cement in the toilet tank and pickles down the drain type of stuff). She even stole stuff out of the garage that belonged to other tenants. I know this may not help you much in your current situation, but once you are on the other side of it, just be glad this will be one of the last times (knock on wood) you will have to deal with this type of tenant if you don't skimp on the background checks and due diligence. I use a prop Mgr now for everything and have no problem at all paying for that service after what I've been through.

John Thedford, thanks for the response. Did you wind up converting to a commercial insurance policy and was it much more expensive? I know I'm zoned residential/ commercial so I think I'm good there. In fact, I actually have group housing designation from the city of Orlando due to code enforcement poking their noses around at the time but that's a discussion for another post! It may actually be worth the effort only bc I have had a hard time Renting the prop recently and this would be guaranteed income 2+ yrs. Anyways, sounds like your group home is working out well! I'd love to connect with you on the side if you're interested as we seem to be in similar markets in FL.

Hello everyone! I searched the forums for a post on this topic and didn't find one. I am in a precarious situation with a 4bdrm 4 bath SFR in Orlando, FL as in I have someone interested in renting the house as part of a group home for recovering alcoholics exclusively to women. It's a for profit company that runs this and the owner has a few properties in central Florida she rents from in this manner. There would be up to 7 women in the house as part of this program at any one time. The pros are 2 yr guaranteed rent from the company, not the individuals living there, a maintenance crew that works for the company and not out of my pocket, supporting a good cause. The cons as I see them, excessive wear and tear, possible issues with the neighbors, someone relapsing on my property and causing harm to the property and/or others. My question is first of all, does anyone have experience renting SFRs as group homes? Secondly, do you have a special lease agreement that allows for you to take a larger than normal security deposit due to the heavy traffic and higher chance of property damage? Lastly, are there any other things I need to think about before agreeing to this arrangement? Many thanks! Josh W.

Thanks everyone for your response. It definitely resonates with everything I've learned about what makes a bad deal. I'm Just surprised the bank still has this priced so high. I know it's Boston and people are buying properties 10-20% over asking prices without even blinking, but something like this is clearly a lemon. Maybe I'll put in an offer for $150k and hope for the best!