All Forum Posts by: Patricio Tellez-Giron

@Account Closed I have cash. And yeah, I can imagine looking at it just for its contracts portfolio wouldn't make much sense as you can loose them in day! Also, such companies usually don't have any assets and are owner managed. 

The only reason it might make any sense for me is, if first, it has good financials and enough cashflow to get a 30 or 35 down credit for a 45 doors property, netting on average 300 cash flow per door. 

Second, we can continue to grow the PM business as an additional income stream. I would not even try to run that business, I would try to bring a PM company to take over the clients, manage my current and future properties and run with it.

Again, just an interesting idea that might be worth exploring... or which I am already working, I should say. It might turn out to be a stupid idea, or it might not.

I'll keep you posted.

@Tim Macy and @Gregory Walter That is a possibility too, I'd like to talk in detail about that.

@Sean Webb several reasons for that... I already have a couple of properties but I am having the same credit issue for getting a refi loan. Also, I don't want to do a lot of SFR because then you get management, capex and all other sorts of issues that when scaling, are harder to manage from the distance than multi family.

SF are a great option for me but as fix and flip. For cash flow, I think a great value add, 20+ multi family, with great PM to run it, will be a better asset to park some cash and get a steady rent income. Plus you get other tax benefits of having such a big property.

Again, it all depends on how well you buy, but I can afford to be patient and wait for the right deal.

@Chris Winterhalter sorry for jumping in like this on an old post, with a completely unrelated topic haha! but, does any of the hotel rehab work you've done has been to turn a hotel into residential apartment units? If so, you should/MUST (please), post about it!

If not, how about a hypothetical..? I am by no means trying to give you homework, I'm just curious about how you would go about doing so, or if it even makes sense.

I ask because a good friend of mine owns a hotel chain and he is constantly gets offers to purchase hotels of all types, including the typical small economy hotels in blue collar areas.  

Thanks @Cameron Skinner @John Thedford @Ryan Inman  and @Phillip Dwyer

Just an update and a thank you for giving advise on this subject.

A day or two after I wrote this post, I gave another try calling the broker again. She had a better attitude but kept stalling until she received a call form my attorney and, literally, 30 minutes later I had the unconditional release on my inbox. I'm not sure what happened there but lesson learned. 

We moved the listing with one most reputable teams in Vegas and put put it  in contract two days later. What a difference.

Great week everyone!

Shelly, is this property still available?

@Marc Dupuis Thanks Marc, I do believe everything you said is true. And yes, I am hiring this firm to get the deal together, including bringing lenders to the table and securing loans with the new structure for acquisitions.

What type of firms you are referring to? Can I hire someone to bring their credit and connections?

We haven't tried bringing private investors and third-party money because we want to gain more experience before doing that; we also have enough capital to invest for ourselves, as long as we can get financing to get a higher cash on cash. it just doesn't make sense to go hundred percent equity into rental property. 

However we will definitely bring investors on board after we have a number of properties in our portfolio. But not yet.

Today we do flips and own in Las Vegas, Charlotte and soon we'll be in San Antonio and Houston.

I need Property Managers, Business Brokers and Lenders to give their opinion on this strategy, please.

I'm working with a large Business Brokerage firm to put this deal together and my broker tells me is totally doable. What do you think?

So, the idea is to buy a reputable Property Management Company to gap my lack of creditable experience and lack of credit, in order to get financing for buying 20 to 50 unit Multi Family properties. After we buy it, we would contribute some equal amount to strengthen its balance and then leverage to buy units.

I would also bring a local property management company on board to take over the PM business and operations; and use the company's income, credit and track record to get around my lack experience and credit. Same thing some expats do when when they have been out of the country for many many years.

Why, you might ask? I want to do this because I lived abroad my whole adult life and I just moved back to the US last year. I do not have income and I do not have stablished credit. I've had credit for less than a year and haven't filed income taxes yet, my first filing will be for 2015.

This way I will have the income, experience, business history needed to get loans and show operating capability, and I could use that company for all our real estate transactions.

Another advantage would be having the manpower to purchase buildings and keep the management "in house", while at the same time having some income from the existing management  contracts they have in-place.

I am looking for a company with at least 5 years in business, cash flowing 300-400K, healthy financials and no debt. Preferably with assets and a good staff in place.

I have been doing flips for the most part in NV, NC and soon TX but there is no way I'll be able to invest the money I need to, just by doing flips and it is too risky anyway.

I could also buy a bunch of SFH to rent them out but I think the operations and CapEx will be more manageable with Multi's.

Although I am not a new to investing in real estate, this is definitely something new for me. I have been investing in Vegas for two years and I've bought and sold property, managed vacation rentals and I am currently building SFH in Mexico.

Is it smart? Is it doable?

Oh, and I haven't taken this idea to my attorneys or accountants yet... I want to be sure I can get this done before paying by the hour.

Looking forward to your comments.

• @Russell Brazil It is not that the broker is not allowing the property to be shown, it is that the agent does not have a clue on how to market the property, how to get feedback or follow up on the few people that have show interest. Two of the few that have gone with genuine interest, I got the leads myself.

Also, it is not absurdly priced, I actually went with the agent's suggestion with is in fact, 20,000 over the comps. He wanted to price it high in order to have some negotiation room.

I'm cutting the price to where I originally thought it would make sense but with my new broker.

My issue with the broker is not that they are sabotaging the listing on purpose, my issue is that she is not doing her job monitoring her agents, looking after her listings and putting the work necessary to get the job done.

She'll be getting a call from my attorney tomorrow and @Mindy Jensen that too is a great idea, she will hear from the board too.

I am almost certain I can prove she didn't adhered to her fiduciary duties in our relationship.

Hello BP,

I have a big problem with the listing broker on one of my properties in Las Vegas, NV. I normally list my flips with the same broker that got me the property... I am just realizing it might've been a big mistake, instead of using the ones I already now and work just fine.

So I've had a listing for almost two months now and the broker, who assigned a new agent,  not only has not produced anything, nothing at all, but haven't even showed the property. The only people the have taken are agents from their same brokerage. 

The weekend when the NFL regular season started, the agent called me to let me know they were canceling the open house we had scheduled even when I told him I had people going that day. 

Furthermore, the agent completely abandoned the listing when I refused to have weekly price cuts instead of a bigger price cut after the listing hit 60 DOM.

Now I've decided I'll do a cash out refinance and spoke to the broker, she told she would let the agent know and to contact him to get the parcial release. Its been 3 days and he keeps telling me he lost his ear, that he can't talk to me and that I have to talk to the broker, she's the boss. Obviously she is not picking the phone either. They don't seem to have any intention of releasing the property even when I agreed to a 20% referral for them.

So, I don't know what game they are playing, if they want to mess with me or tire me or what.

I signed an exclusive listing agreement until December but I don't want to wait that long to get people through the door and I really feel there has to be something I can do. I don't mind hiring an attorney and fighting for my listing, although it might do more harm than good at this point.. Any thoughts or advice?

Any good real estate lawyer around? 

It's been a awhile since the last post. 

@Alexander De Arcos any luck?