All Forum Posts by: Maggie Vineyard

My father and I are in a 1031 exchange and under contract to buy a fourplex in San Antonio. (We are already way beyond our identification period so cannot buy something else).

This fourplex is brand new construction and after having an inspection, we have discovered some major issues with the construction. The seller had agreed to do all the work, per our contract, but after re-inspection, it was not done properly, and sounds like it could result in some major problems down the road. Now he is telling us it’s been done already, but is a terrible "half-assed" job.

I have requested we extend the closing date until the repairs are done properly OR go ahead and close but hold back money in escrow so we can do the work ourselves. He is refusing to do this.

I’m not sure what my options are now..if we don’t buy it, we are going to have a tax issue. But we do not want to buy a property that is poorly built and have problems later when we are trying to resell it or our tenants complain.

I feel like the seller has all the leverage now since he knows we are in an exchange. Any advice on my options at this point or how to get him to allow a holdback for repairs? 

We were going to buy multiple properties from him (which I was using as leverage to negotiate), but now that seems out of the question..

Hello fellow BP members-

I will be listing 2.22 Acre site in East Austin, next week.  There is a vacant building onsite which used to be a senior living/rest home.  It has been vacant for 5+ years and went out of business.  This building could be rehabbed or torn down to allow for new construction.  It is an ideal site for new homes or townhomes. Zoned MF-3.Address is 3101 Govalle, East Austin.  Asking $3.1Million.

Please contact me for more details.  512-788-3392 or [email protected]

Maggie Vineyard

McALLISTER & ASSOCIATES

201 Barton Springs Road

Austin, Texas 78704

Office (512)472-2100

Fax (512)472-2905

Mobile (512)788-3392

Hi @Muhammad Ali

Thanks for your note.  unfortunately, my focus is 5-500 unit apartment properties.  That is what is considered "multifamily" in the banking sense of the word.  Banks will determine the leverage and approve the loan on the property's cash flow versus the individual borrower's net income.

Wish I knew about some 2-4 unit deals as I'm sure they're hard to find in Austin!  Good luck! :)

Hi Brian-

I will keep you in mind if I do.  

Would you look at any other areas or only Dallas?  Fort Worth, Austin?
 

Hi Christopher-

This is a great idea though can be trickier that it appears. I was a loan broker for 8 years and did many condo conversion loans in California. I agree with Ryan G. You need financing specifically for a condo conversion which will allow for partial releases. FHA could have a program for it, but I am not familiar with it.

It may be difficult to qualify for one of these loans without prior experience so you may want to find a partner who has done conversions before.  I would suggest checking with local banks who specialize in commercial and multifamily financing and know the area well.  Also, make sure you know what qualifications each unit and the building must meet to be converted.  While I was working in San Diego in 2007, the city changed the required parking per unit and many people got stuck with projects that could no longer be converted.  In addition, these were properties that didn't cash flow as apartments because they paid an inflated price and were on balloon loans that came due and they couldn't sell.  It was very ugly and many of the less experienced investors lost it all.  Just make sure you do your homework and don;t overpay for the apartment building!

Good luck and let us know how it goes!

Hello-

I live in Austin, Texas and work as a commercial broker specializing in multifamily and land sales.  Previously, I was an analyst for a mortgage bank and loan broker in CA for 8+ years.  I have analyzed hundreds of apartment buildings.  I am now offering my services as an analyst/consultant.  I am most familiar with Austin, Dallas, Houston and San Antonio markets.

Please contact me to schedule a meeting to discuss further. 

I have a 2.2 site on Govalle in East Austin we are about to list.  This lot is 2.2 acres zoned MF-3.  The property was previously a Rehabilitation Center and has been closed down and vacant for the past 4-5 years.  A new buyer could reha

Have you checked out Alan Graham's Community First Village in Austin? This tiny home village is a non-profit for the homeless but you should go visit it. May give you some good insight and ideas. http://mlf.org/community-first/

http://www.bizjournals.com/austin/blog/techflash/2015/12/tech-giant-oracle-to-build-massive-campus-in.html

I don't really work in the sfr business so am afraid I couldn't tell you.  But I work with commercial/multifamily developers on a daily basis in my day job and can tell you everything they are building over there is going to just push values up. Oracle is building a huge campus on the lake.  New Construction townhomes 1 block south of the lake are being built by In-Town Homes and are selling between $464-$609k!  I imagine there are older homes that need work and are still relatively affordable for Austin.  The neighborhood still has rougher areas but all the development is moving that way.

 It's so close to downtown, the airport, still affordable and has a lot of green space. To me it seems like a no brainer if you run the numbers prior and can cover your expenses with the new rent. :)