All Forum Posts by: Ozzy B.

Keith,

In early 90s, I accumulated lot of cc & other debt, it took me years to pay it off. Since than I made a habit of paying the Cards off by month end. My house is free & clear. It just gives me a piece of mind.

I like your idea of debt for tax write-off purposes. If I can genrate enough cashflow to reach my goals, why not.

Again a great point about predator plantiffs. I haven't though about that. I will set up an appointment with RE Attorney for advice.

Thanks OZ

Thank you Ann, great suggestions. I will ask around in the DFW area.

My uncle owns couple of Apartment complexes (over 100 units) in MS. He bought underperforming assets, worked very hard to stablize them. We discuss operations/financials all the time.

One of his property (102 unit) is doing good, great property manager, 92% occupancy, no debt, after 7% improvement reserves, NOI is 178K. If he had debt on this property, he would barely break even. His initial investment was 1M. His ROI is close to 20%.

I think people buy multifamily with not enough reserves, don't plan for capital improvements, start deferring maintenance, slowly the deferred maintenance catches up, resulting in less occupancy which leads to foreclosure.

I want to have enough cash before I start. Once I do in the next 3-4 years, I'll sell my current business and concentrate on managing the multifamily business.

Most of the big players in this market have large portfolios in many states. They rely on professional management companies. I am sure there are reputable PM's in the market.

As you've suggested, I will speak with several lenders in my area and start checking their references.

Regards,
Oz

Hello everyone at BP,

I am new to Bigger Pockets. There are so many people on this forum with incredible wealth of knowledge. Looking forward to learn and contribute.

My interest is in Multifamily and passive investing. This should've been my 1st post. I have started another one with more information.

Here is the link Investment Ideas, deed Investing, HML, MFR?

Thanks
Oz.

Thanks Eric, I work 16 hours a day and barely have time for active investing. Continue saving for the next 4 years makes sense. I may have more time than.

Every financial advisor I came across is against REI. My background is General Contracting and feel more comfortable in owning a Multifamily down the road. With all the vacancies in current market, Is NNN lease still viable?

Thanks Steve, you are right, I am looking for passive investment. Setting up HML or JV with investors is more time consuming than riding with a reputable group who is already seccussfull.

What I read about Norris group, they only invest in CA, have 9% and 12% investment options. My investment would be secured by Deed of Trust. CA is Deed of Trust state. In case of default, foreclosure would be non-judicial and less expensive. It gives more rights to a lender. As per their website, they provide a list of properties with up to 60% LTV backed with appraisal, inspection and comps for the investor to choose. For the new investors, they allow physical inspection of the property. Unlike companies similar to "Pride of Austin" which allows investing in their fund with no control over properties and no physical security.

I have enough time to review property package consisting of borrower's information, credit report, property evaluation and make a decision. Thats the extent of time I can spent. It makes it easier since all the information is coming in one package from a reputable source who has scrutinized the process.

Has anyone invested with Norris? I would like to get some feedback from actual investors. I couldn't find any user reviews on the web. Can someone give me a list of similar companies (in DFW or Houston is better) and their experiences?

Thank you.

Hello Everyone at BP.

I have been reading, researching real estate investments and strategies for many years. For the past few months, I've been hooked on BP. The thing I like the most on this forum is people helping people to succeed. This is Unprecedented. Especially from people who are already successfull but still helping others.

I am a business owner. Over the years I've made some bad decisions and guess still making em, I.e. investing in stocks, over the board lifestyle, kids going to private schools, big house, expensive cars etc.

I just turned 40 and all of sudden I realized that I don't have significant savings, what if something goes wrong and I cannot continue working or suffer a huge loss.

I had to set a goal for myself and my goal is to earn atleast $25K/month passive Income in next 4-5 years. I just need a comprehensive plan.

1)Traditional savings methods such as Treasuries, saving accounts, term deposits don't offer good returns.

2) Fix/Flip don't have enough potential to reach my goals and its not passive.

3) I've researched companies like Prosper and Lending Club but their stats and no-collateral is discouraging.

4) I like the idea of owning a large multi-family complex debt free. NOI without the debt services will give me enough to reach/exceed my goals. With a Professional Managment Company, I won't have to manage day to day operations.

I have 1M tied up in various things which I cannot tap for next couple of years.

I have $300K in saving account earning 0.85% and can save additional 15k/month. In 4 years that would be over 1M. If this money is invested elsewhere it can grow much faster than 0.85%. The problem is that I don't have much time to spare so no rehab/flip.

I've also been researching transactional funding, Hard Money lending but am worried about usury laws, compliance with state/federal regulations, dealing with brokers, title companies, attorneys, CPA's and the due diligence on the property to fund. Maybe I am over cautious. Again sparing time is another issue.

What do you guys think of companies like Norris Group. Norris offers deed investing and rated A+ with BBB. Has anyone worked with them?

Any other ideas?

Sorry for a very long post.

Sorry, didn't want to confuse anyone with transactional vs HML. My question is related to HML?

Reviving the slightly old topic.

Bill Gulley, I have read several of your posts with regards to transactional funding. Are you involved in hard money lending? I have few questions:

If I lend 100k at 12%, 4 points for a 6 month term. Each point is 1K. Does this mean that I will get 4K at closing?

Who will get the loan origination and closing cost fee? title company?

You've mentioned short term loans. Most rehabbers look for 3-6 months term. Who would be in a market for a short term loan? If not rehabbers, is it not riskier since there is no hard asset collateral?

Is there a market for selling these notes at a discount? I am more interested in points and selling off the note.

Thanks in advance. I am in Dallas area, other please jump in if you have any info.

8-10% CAP is more realistic for large Multifamily. You need to invest appx 10M to earn close to 80-100K / month.

Unless you are going to turn around the under-performing asset.

Good reply Jon, your posts are always very detailed and informative. I am sure you have all sort of spreadsheets and formulas on your PC.

1 Mill is Psychological number. It comes up all the time in many threads. Investors who want to grow that big are in Multi family business.