All Forum Posts by: Paul Guilbeau

Thanks for the feedback guys.  You are right, not considering an exit strategy right now, just want to go into the deal understanding everything I possibly can and be ready for any eventuality that may come up. 

Nikolai, good stuff, the first two are easy and have done those with my houses.  Where can I read more on syndication after it is built and up and running?

Working with my partner to develop a 12 unit apartment complex that has enough land to build up to 36 units.  I am looking for resources that can I educate myself on the different exit strategies.   Have flipped many homes, have two rent and hold homes, but this is my first venture into multi-family.

I am educated on 1031 exchanges, just trying to understand all of our options.

We are just under 8500 SF, 10 1BR/1BA and 2 2BR/2BA, so closer to $82/SF is our budget.

Michael Le, like I said, the city is being 'very helpful' in regards to tax.  This is a Year 1 only look, which is what is needed to REFI.  So everyone is under a 1 year lease, so no make ready should be needed.  Initial landscaping is rolled into the cost of the construction.  

Common utilities, ongoing landscape maintenance, professional services costs were what I was wrapping into misc. expenses.  So taking your comments, $5k may be low for that groupl.

So, Taxes and insurance are $15k/year, that I know for sure.  I estimated roughly $400/mo in misc. expenses because it is a brand new building and I don't anticipate much in apartment maintenance that first year, so this is strictly general property maintenance.  We are self-managing the property.

Where am I missing the rest of the expenses?  I appreciate the feedback.

Yes, 12 units.  The goal is to build the 12 units, and if we get the expected response, start construction of another 12 units on the same parcel of land.  The parcel is from an estate that the heirs want nothing to do with it and are selling at a great price.

I expect the second 12 to be even more profitable as most of the development expense comes into play for the first 12.  My partner is a lifelong friend who is a builder, so we get the added benefit of no GC fees, etc.

My partner and I are very close to closing on approximately 2.4 acres of land just outside of Houston.  We have met with city officials and they are very eager to get more development in their city.  I have done the numbers about 100 times, listened to every podcast I could find, but want to get even more eyes on this deal.

The cost of the land, development and building will come to $700,000

Annual rent income will be about $120,000/year.

Taxes, Insurance and other expenses will about $20,000/year

Since it is a new building, we anticipate a cap rate of 8%

So once full, as I understand it, the building is now worth $1,250,000 ($100,000 / 8%)

As I understand, we can cash out REFI for say 70%, which would give us $875,000.

This means we would now have $175,000 in additional funds to go do this again.

Am I missing anything here ?

Can someone explain to me how Tax Sale Consultants work? They are offering tax sales properties for sale for a deposit and it comes with the normal redemption periods. Are they just showing up at these auctions and bidding on your behalf? I am sure there are other scenarios, but I am having difficulty understanding the process.

Can someone explain to me how Tax Sale Consultants work?  They are offering tax sales properties for sale for a deposit and it comes with the normal redemption periods.  Are they just showing up at these auctions and bidding on your behalf?  I am sure there are other scenarios, but I am having difficulty understanding the process.