All Forum Posts by: Michael Ran

@Feras Mo they are apartments. 106 units and 336 unit apartments. I am a passive investor which means I own part of it/ partner in each apartment.

It is easy to make deals and manage SF, anyone can do it. However, sole-ownership of MFs is a different animal. MF requires more money, risk, and guts. The jump is risky and just plain scares me. I can risk $100,000 on one deal but risking 500k-5 million which can be lost by mis-management and all kinds of other factors should concern anyone that does not understand the business. Now I have walked through the process with the guy that had the guts. So I know the process, what to do, and how to do it but it is a jump from knowing and doing.

One is a C class the other is a B-. Greenspoint is great but mainly because we bought at the bottom of the market in 2009. The 336 unit has been refinanced so I got all my money out and it's still sending cash flowing plus doubled in value. The 106 unit has no loan so that makes a lot more cash flow sent to me in % invested.

@Feras Mo they are MF, 100~ &336. I meant there is a jump from SF to MF.

I am in 2 passive deals in Greenspoint. We bought them really cheap. I walked through the process for both properties with the deal maker.

@James Wise is right most of the deals is not all about you as much as can the deal make money and keep making money. Also, can you make it work better or help it make more money and how. You will need to build a REALISTIC business plan on how you can do that and how the numbers will look and how you will maintain the numbers.@Waylon Themer  may be able to give you more pointers then I can in this area. 

I wish I could make the jump but I just don't have the cash. .... And I'm still to chicken to jump! 

@Joshua Morris  I invest in Houston and would say that Is a bad deal for a rental. I am still having a hard time finding deals. Now for a flip, Cypress can be a great area! There is a major highway being built up there and several oil companies are moving up there which will increase values a lot! Houston rentals must make 300+ a month to be worth looking at is my strategy and it has always worked for me. IMO

@Mike Landry is right the rents need to be about that high. @Rosalynn Rice What city/area/subdivision? That is what will make the difference. Most investors that are local will not buy such a high priced property without big rents and location being in the right place. Now if you want to help there are out of town investors that will pay that price unseen, that what and Would look for this type. You can find an realtor reping out of towners.

I personally would say it has to be 2200sqft+ built 2003+ in an area of 1650-$1800 a month rents or in The woodlands, grand parkway, or king wood areas to be worth that in this inflated Houston market. But I'm really conservative in my investing. I would happy to take a look if you want, just email me.

I would also suggest contacting a lifestylesunlimited agent about it. They do email blasts and someone may jump, but she does not seem to want a realtor. But before you do that make sure you have an option on the property!

@Tim Key  I have had a few bad apples but for the most part they are good. If you are looking in the Houston area I have a few good realtors for you.

@Chris Adams  I think the bank is looking more at my Debt. Cash flow is good but a young/unproven investor with a million plus in debt will pause any banker. I know they have funds for future loans. 

I wanted this to be more of a discussion of how other people proved themselves to banks and how they solved growing pains like this. Examples: 

I could sell everything and restart with higher quality, flip groups of properties, or buy MF properties.

I could payoff a few properties to increase my overall cash flow to debt ratio.

I could buy owner financed properties.

I could do things to make my PFS look better to the bank.

I could do JVs with others and use their credit and grow.

What have you done or do when this has happened to you? I am looking for all ideas and thought on the best way to keep growing.

well but it wasn't even my 10%. A preferred investor has to have 1 million in assets. I didn't have that so my father did it.

I could have had it out right.

I was still really new to REI. I had never even closed on a single house yet. I didn't trust my gut. I found a MF 100+ unit for 10k a door. It was in a C+ B- area and had some minor rehab. Instead of buying it. I told a business guru friend and only did a passive investment.

It is now worth 45k a door. From 40 to 95% occupied. Need I say more!

@Tim Key zillow has a bad rep for over valuing things so double check everything with your realtor before buying. I'm in REI buy/holds for the most part. But flips are a different beast so I'm evaluating my options and flipping is just one of them.