All Forum Posts by: Mauricio Ramos

For sure is too high with that kind of income/expenses. I agree with @Richard Sherman

Unless this in your backyard and you will be doing a lot of things yourself (which i wouldnt).

We are buying a 16unit in south Texas in great shape for $35k/door.

Good luck

On top of what everyone is recommending, i would add Michael Blank's and potentially Rod Khlif's

Sellers, especially if listed by a broker, will always ask more than what they want to get, and usually more than the property is worth. Call it room for negotiation or something else.

To generally answer your question, until you get replies or letters in the mail about how offended they are with your low ball offer,  saying things like who do you think you are to be offering that low, etc etc etc.... you offers are too high.

Good luck!

Hello BP Family,

Super excited about this new complex of 8 properties we got under contract this weekend. This complex is on the heart of San Antonio, in the "artsy" area of South Flores near downtown. The property is in the middle of an area that has been getting gentrified for the past 5-10 years, and now is its turn. 

Complex consists of: 1 duplex, 1 fourplex, 2 triplex, 1 empty warehouse, 1 empty lot, 1 house, 1 parking lot, 1 corner store and 1 restaurant/bar including the kitchen equipment up to code. 

Still in the prelim stages and debating what to do with it. Any suggestions?

Thank you,

Mauricio Ramos

Hello BP Family,

I have a 10 unit apt complex in a small town near San Antonio. This complex has one non-operable unit (used to work) and since i bought it, it has been only a storage room for my materials, etc. generating no income.

I am debating between turning this unit (~450sqft) into a studio, rent it as storage to one or two tenants, or a laundry room? None of the other units have washer/dryer hook ups, and there is no laundry facility in the immediate vicinity. Of course i want to get the most out of it with the least amount of money as well as use it best for a refinance in the next few months. 

Estimates/Rents for each would be about

• Studio - Estimate for rehab $12,000 - rent $475
• Storage - Clean up/Door/etc $800 - rent $90x2
• Laundry room - setup $6,000 - potential monthly income $200

Anybody has any other ideas or suggestions on what i can do to get the most out of the unit and how it could look best in the bank's eyes for refinance?

Thank you!

Mauricio Ramos

@Susan Cribb could you please expand on the two concepts you mentioned?

@Omar Khan hey, thanks for your input. How would you set it up in a different way to avoid all those costs?

@Tony Castronovo wow that sounds like a VERY good set of terms! Do you know if that lenders works outside College Station? Perhaps south texas? If they do, i will be interested in learning more about them.

Thanks for sharing!

@David Lilley thanks for your response. We actually reached out to a few "local" banks that have presence in the area and all of them either had a very short amortization period (10-15 yrs) or had a high personal guarantee threshold (60%+ of ownership) which would have resulted in asking my investors to personally guarantee the loan (big no for us). 

The 30yr am is accurate, hard to beat right?

Hello BP Family,

We are excited as we are getting closer to our next acquisition: a 16 unit apartment complex in the Rio Grande Valley. We will be bringing investors (friends & family) for the downpayment and closing costs and get a loan on the balance. CoC about 10% avg, business plan is to hold it for 4-5 years and should be able to double everybody's money by the end of the life of the project.

My question to the group is about the interest rate. PP= $570,000, LTV 75, 5 yr fixed, 30 yr am, recourse. The rate we are being quoted is 6.875%. What are the rates/terms you are seeing for loans under $1M?

Thanks for your input.

Mauricio Ramos