All Forum Posts by: Philip Bashaw

Its funny as I'm writing this I saw 3 maintenance people working on the property earlier today. Damn. Looks like the value is going up now... hahaha!

Thanks @Tony Velez

I'm looking forward to seeing how this all turns out

Yes @Bill Gulley...the devil is in the details on this deal, if there is going to be a deal at all. I like that "undisclosed party" terminology. I've run all the numbers using the BP calculators and know that the rents will allow me to make hard money loan payments while I renovate 2 units at a time. I would get it all fixed up and occupied then refi with a commercial FHA loan

Thanks @Rich N. and @Account Closed for you input as well! I really don't understand why the owner is letting it decline. I don't think it's health, I think they defer to the property management company too much which I've found them to be very accomplished liars. I have never seen the owner and I've been here 4 years. I have a number in mind and I'm reasonably certain I can secure the financing via private money and some of my own after a couple flips I'm about to start. 

Thanks for the comments guys! 

@Justin Fernandez I do like your idea of talking to the owner as @Brent Coombs  has also suggested. The is pretty insulated by the PM and I actually don't have a good relationship with the management company. I complain too much about the condition of the property and wanting basic repairs done. The maintenance manager is a complete *** and and the management company as a whole seems to not care about the condition of the property or the residents that live here. Building an ally as @Bill Gulley says is not an option. 

I purposely withheld rent to get their attention after many unanswered emails and phone calls about basic stuff and a raging roach infestation! It worked, but not the way I wanted it to. I got a phone call saying  "hey, where's the rent?" Anyway, to make a long story short and after a couple run ins with the maintenance manager and new property manager they stopped accepting my and tried to evict me! (the property manager that was in my corner quit during this whole process) What a nice bunch of people, right? I went to court for the dispossessory hearing and lost. I appealed, paid all the back rent they weren't accepting to the court and got a lawyer. My lawyer negotiated a move out date for me and my kids of 11/15 and full return of my security deposit. I don't think they've ever been challenged like this and it really pissed them off. 

I need to go stealth now. I'm thinking about asking my real estate attorney (closing attorney) to make the inquiry for me and make the offer as well if there is interest.  

Hello BP!

I am very interested in multifamily investing. Initially, I want to start with a small apartment building with 12-20 units in a good area with high occupancy rates. I live in Atlanta, GA where there are loads of small apartment buildings that are just that, like the building I currently live in. It's an 18 unit building of 2BR/1BA units in a great area with great schools. The owner does the absolute bare minimum and the management company seems to have been instructed to ignore all requests about fixing anything. Rents are $300 below market rate so it stays occupied and once people get over the excitement of having found a bargain, they realize what a dump this place is. 

Being a savvy real estate investor now, I think I've figured out why the owner is letting the building decline. Property taxes and depreciation! I looked at the taxes paid over the last few years and they used to be a lot higher along with the assessed value. With that being said, I want to know a good way to approach the owner with an offer based on the condition of the property, it's depreciated value and below market rents. FYI, the property is not for sale at this time and the same person has owned it for several years.

Is there a formula to determine what a fair offer is for a small, rundown apartment building in an excellent neighborhood? I want to make an offer and even suggest owner financing for 12-24 months while I build up cash by flipping houses. My new strategy is to fix and flip houses, take those profits and invest in small apartment buildings.  

It depends on who found the deal, negotiated with the seller, etc...if you are just providing the funding and your partner is handling everything else, a 50/50 would be fair compensation. I'm about to do this kind of JV deal with a private money lender. He is going to charge the usual points and fees, but no interest.

Hello Bigger Pockets!

My search continues for a private money lender to build a relationship with and/or build a JV partnership with. I'm looking to establish a long term relationship with an individual or investment group for SFH flips and small to medium apartment building flips in my Atlanta marketplace.

My question is this; in two parts: 

What was your big break in real estate investing? and how long did it take you to find a private money partner to work with you and share your vision? 

Thanks in advance! 

Hello BP Forum!

I'm thinking about buying the RehabValuator premium as well but I notice this thread is almost a year old. One thing that bugs me about the presentation online is that the examples Mr Kleyman presents are from 2011. For those of you that bought it, can you login and get updates? It seems almost too cheap for a onetime payment of $97.

Also, has anyone used it successfully to fund their deal via private money?

Thanks! 

@Brad T.

I would shop it around and let us know what you find out. I've seen rates around 3% and there's a website called cozy.co that helps landlords & tenants come together. 

Correction:

*rehab them 2 units at a time...