All Forum Posts by: Dale Slater

sounds like a no brainer to me 

List The Best Apartment Funders In Ohio

List Legit Hard & Private Money Lenders You Have Personally Worked With And What They Funded.

What are the best ways to find sellers of apartment complexes? I have a few but would like to see how many there actually may be, such as different stratigies other investors use to find and contact MFR sellers, OFF MARKET.

I would say look for larger properties, more doors a lot more. If you don't you may get caught in the middle. Figure with 6-14 units all looks good until you figure what it is actually going to cost to pay a maintenance guy and a manager, your probably not going to make a dime. Say you have 10 units and after your mortgage and other property expenses (trash, mowing, possibly water/sewer, etc) and you happen to make $100 per door after this and assume the property is 100% full. What management company and maint. Personal is going to do this say for a grand per month, would you? Hence being stuck in the middle. You have income coming in but just not enough to pay full-time help, so a old real estate wise man once told me (this man owns 1200 units) you have to stay small and only have a few units that you manage on your own or you have to buy hundreds of units to where you can afford to pay a staff. Anything in between and you will have the headache of being the maint. Man, the manager and the leasing agent and now you will be working "in" your business instead of "on" your business.

So I now look to buy at least 100+ door complexes, and am open to partners due to this predicament.

I purchased a small apartment complex in mansfield, Ohio. The sellers were don't waters and lived out of the area. It was poorly managed and the occupancy was low as well. Anyway I bought the property on a land contract, no down, no job verafication, no credit check, I walked away from the closing table with 5k check and had my mortgage payments deferred for 3 months as well. Only to pay the water/sewer, trash, mowing, well property expenses. Got the property leased up in roughly one month.

Ben is correct as above as well try to get long terms so you have time to refi out. Don't say 5 years it sounds to long use months, like 36, 48, 60 months sometimes it is easier for the seller to swallow.

Even though that says 18 to 20 percent down, that's a possible no down deal for you. Find out the whole situation with the seller and the property. Like if they are outof town owners, poorly managed property, basically don't wanters. See if they will spread that down money out over a period of time. Or see if they will hold a second mortgage for that 20 percent down and defer that note. Pay on the primary note, or contract you have with them in the mean time look for primary financing and refi out into new permanant bank financing. You could get in this property low to no down just get creative. Real estate investing is a borrowed money business and sometimes the sellers are the bank my friend.

If you are paying cash or have financing in place offer far far less than their asking price. Cali or not that's way to much for a double and quad. I have 20 units in Ohio and paid under 400k for them all anyway, make sure your monthly GOI is far more than your monthly expenses. You still need to figure your CAP's, etc. But as long as you have far more cash coming in a very little expenses, going out per month, all the other figures should fall into place. You may want to rethink that huge mortgage your about to do on these properties, which I say offer far far less. You want the bank to say no right off the bat, this way you know your not paying to much. If they say yes on their first offer, you've paid to much. Remember banks are in the lending business not landlording business. They DO NOT want properties on their books. Just keeping it simple for ya for now.