All Forum Posts by: Robert Rixer

Since the vacancy is required for the loan, this would fall under the loan contingency. Assuming your offer got accepted, the owner would need to get a unit vacated by closing (obviously this will need to be communicated). If not, the contract can be terminated and you would get your deposit back.

You're legally bound only by the agreement you've signed with your agent. Nothing else. Procuring cause is not relevant here unless it's stated in an agreement.

It's funny everyone gets hung up on who pays the commissions. At the end of the day, all agent commissions (and all other fees for that matter) get taken out of the deal pot, so while it may appear one side is "paying for it", the buyer could get a lower price and the seller could get a higher price, without it.

You think you have a deal struck, but in reality you are net at $175k and the seller is at $180k. Assuming your broker isn't getting stiffed of course..

Apartment building buyers are on average far savvier than SFH buyers, so they may not feel the need to use a broker/agent simply for transacting the property. Apartment brokers typically have to bring value in other ways such as bringing their client deals that aren't on the market.

It's hard to say without specifics but generally in today's climate, it's very tough to make the numbers pencil out on a development with high interest rates, cost of land and high cost of construction. 

Seasoned developers can perhaps eek out a slim margin and are more bullish on future gains. You need to have some sort of "in" to make it worth it: either you're stealing the land, you can source materials and labor on the cheap or you have an ability to get it upzoned beyond what others believe can be done.

You can only find the answer to the LLC purchase possibility by reading the loan docs. No one on here could definitively answer it.

I would be suspect of why the owner is so motivated. If it's external factors such as they need the money to do a bigger deal, or they're closing down their fund, or they're getting out of RE completely then fine. However with 75% occupancy, the motivation seems to be property related. In which case you need to ask yourself, do you know all the issues with this property and why do you think you could succeed in turning this property around where this operator has failed.

Not quite Indy, but I've done a bunch of multifamily deals in NW Indiana. Typically you'll be dealing with older product - from my experience, the key to capping your downside risk is being able to identify plumbing issues. Other than that, it's a very landlord friendly state, rents are on the low side but price points are perfect for a new investor to get into versus say the west coast or sun belt. Good luck!

@Evan Polaski Absolutely love this response. And completely agree a dollar saved on expenses is worth the same as a dollar gained in revenue, but the expense side is often overlooked. Overall a lot of these things take time and effort and on the front end and are insignificant on their own. But applying many of them adds up, especially over a growing portfolio. This is true value creation.

Looking to the BP community for creative ways to boost NOI. I'm looking for the most creative things people have seen or can think of, irrespective of how impactful it actually is to the bottom line or how much it would cost CapEx-wise. The more creative the better!

Examples to kick it off: adding solar panels, vending machines, advertising space, allowing credit card rent payments w/ fee. 

It may not be possible, but if you're going to go the appreciation route (versus cashflow), then you're best off targeting 5+ unit properties where you can force the appreciation by driving NOI. With the 2 and 3-flats, you're at the mercy of comps, which is pretty much pure speculation.

Typically you're going to need your own cash. There aren't 100% hard money financing options in multifamily like there are in fix n flip SFH's, is what I think you're asking. Most common way to do it without partners is getting a juicy enough value-add deal where you can refi out your down payment. Another option is finding a deal where the owner will seller finance some or all of the down payment portion and is okay being in 2nd position.