All Forum Posts by: Morgan Wallace

Greeley United Plaza is an Open-Container section of downtown Greeley where local restaurants, pubs, and distilleries serve carry-out. There are picnic tables in the street for eating and drinking. Come grab a beverage from your favorite downtown joint and let’s meet up. 
I will verify closer to the date that the Plaza remains open. 

@Miguel Rivera, did you pursue this course? I'm looking to do the same on an 8 unit.

Hey @Carl Mayer! Nice to meet you. I’m in Greeley as well. 
the Network -> Events section of BP has a list of meetups. Here’s what’s currently listed within 25miles of G-town:

https://www.biggerpockets.com/...

Josh always said on the podcast that if you can’t find what you’re looking for, start one up. Downtown Greeley has 2 streets closed off for carry-out picnic dining. That’d be a cool venue. I think it’s even open-container, just saying. 

Greeley is riding the boom wave too. Nothing listed comes close to the 1% rule, CAP rates for small apartments are in the low single digits, and even very old houses on major streets in disrepair are selling for > $200k. That, coupled with a major redevelopment project downtown that brought a huge number of brand new apartments online, and a few more brand new large apartment complexes on the west side of town, is making it tough for anyone to get in the game here in G-town.
College rental owners know that they have cash cows too, and aren’t willing to part with them for numbers that cash flow if you finance the purchase. 
I think flipping still works, but cash flowing rentals are tough to buy right now.

That’s my experience right now anyway. I’ve been looking for about a year. I sold my property in town to a retail buyer because my cash flow was fine but my cash on equity was very low, so I’m trying to move that equity to a property with better numbers. I’d love to be proved wrong though!

@Joseph D Chapman Mary Bengford with remax is great and Randy Moser with Sears Real Estate is also really good. Mary sold my last rental, and Randy is a good agent with a rental portfolio here in town too. They’re both excellent customer service and relationship agents. 

@Cynthia Archuleta

I am using this right now: https://www.deptofnumbers.com/employment/metros/

But it raises the question: should I rely on 2020 numbers as they are skewed from the massive layoffs caused by the reaction to COVID?

@Rashaun Forrest

The Complete Guide to Buying and Selling Apartment Buildings by Steve Burges. He’s very thorough with the numbers and give several real life examples. I highlighted the heck out of that thing.

I mentioned that I would keep everyone posted on my progress, so here’s a few updates:

1) My favorite local bank said 6-month waiting period after the rehab is completed, so either fund it a different way or pay cash for both the purchase and repair. They did, however, offer an option to finance the purchase and repair, then roll it into a standard loan without additional closing costs.

2) My local mortgage broker said it can be done the way I had hoped with no waiting period. Simply clean it up, have it appraised, and they'd loan up to 75% LTV without any repairs. The value would be based on comps and the condition of the property. The one condition is that the money to purchase the property needs to be obviously yours. I.e. bank statements, settlement papers, stock account statements, etc need to be presented to show that the money really is yours and not borrowed from family or friends. Basically, the lender wants to be sure they're in first position.

3) the property was a total dump, like a tear down. My contractor estimated it would be a 6-figure rehab as everything needed some work and anything worked on would need to be brought up to code. With the crazy market in my area, labor would be expensive, so this property

might need $120k of repairs but the location would only warrant a $140k list price max. All-in-all the wrong opportunity but I learned a lot by getting this far in the process.

Thanks, everyone, for your inputs,

Morgan

@Brooke Andrea I have come across this option, yes. I was hoping to simplify the process by getting permanent financing in place with the fewest number of steps, and I figured delayed financing was the most efficient way to get the most equity out of a property.

Thanks for your response! I didn’t know the name of this type of loan product.

I spoke with a local bank who will lend the lesser of the two: 90% purchase and repair or 70% assumed ARV. They will loan this amount up front as interest only (6% I think), then roll it into a 5 year balloon with a 20 year amortization schedule at around 4%. It seems like a great loan product.