All Forum Posts by: James W.

@Ronald Rohde thanks for the quick reply! I’m not looking for one on just on property in particular. It’s more for the purpose of having relationships before I grow the portfolio. Really Dallas and any of the surrounding suburbs would be my focus

Does anybody have any good recommendations for small commercial property (office / industrial) managers in DFW?

@Simon Terrazas Jr.

I know those container homes you’re talking about! You apparently can’t build them within Big Spring City limits anymore

If I own real estate in a partnership, but I want to pay myself a property management fee, can I create a separate entity to be the property manager? I’m not a licensed property manager / broker, but I’m a partial owner of the property. The property is in Texas.

I do realize that I can’t manage third party real estate without a property management / brokerage license in Texas. And I believe that as a real estate owner, you can pay yourself a management fee. I just don’t know if creating a separate entity to be the “manager” creates any additional issues.

I’m certain this question has already been asked, but I can’t seem to find it anywhere.

@Florent Cohen I have no idea why it took somebody so long to say this. If amort is $800 per month right now then it’s breakeven.

@Clark Childers I very much want to hear a response on this. I own something similar all cash and want to put some leverage on it. I’ve purchased several single family properties all cash too and I’m hoping by offering as a portfolio, lenders won’t get too caught up on the one motel-ish property. I’m going try local banks and credit unions, so I’ll let you know what I figure out.

@Aaron Gilmore I love properties like this. FWIW, I usually assume $100-150 per unit per month for repairs on the more challenging properties. As for taxes, look at the millage rate for the property and assume your taxes get reset to 100% of your purchase price. It blows my mind that people dont assume a tax reset in Texas. I would think insurance might be $3-4k per year, but defer to others. I’d probably also assume 8-10% management fee and 8-10% vacancy.

Well that didn’t format the way that I thought it would. I should have mentioned that my non-recourse request is the least important item on my list.

Hi BP, I’m looking for some group feedback. Here’s my situation. I have a rental portfolio unlevered (all cash) with the following properties: Home 1 Value: $50k Home 2 Value: $50k Home 3 Value: $40k Motel Value: $250k I’d like to buy another portfolio or apartment complex or commercial property in the $400k range. Ideally, I’d go to a lender, show that I have $390k in real estate with no debt and borrow $400k to buy the $400k property. I’d pledge the entire $790k of real estate for the $400k loan (~50% LTV) My resume won’t be a problem, value shouldn’t be a problem, property cash flow definitely won’t be a problem (should be well over 2x coverage, maybe more). My DTI and personal credit are very strong. That being said, I’d prefer to not take recourse and still get a term of at least 7-10 years, preferably more. I’m assuming a local bank is my best option to do this, but does anybody know any national lenders that might be more competitive? I know the local banks will never give me over 10 year term. Thanks in advance

I tend to use the floating, but it’s more like $2psf for that.