All Forum Posts by: Rochelle Wilkinson

Rochelle since you inherited this property you REALLY need to look at the loan docs and if and when the bank can call the loan due. Some have language where it can pass onto the heirs for the loan but the lender is not obligated to not call the note.

Looks like the bank with the inspections is closely watching the  asset so it doesn't teeter into a non-performing loan fast.

If you have a waiting list the rents are likely way under market. You need to find out recent market lease rates for your units. You might be way under what going rents are and not just a little.   

@Rochelle Wilkinson

  Since you inherited it..  maybe a quick cash sale and move on would be appropriate.

Unless you just have a burning desire to be a hands on land lord ..

I would also look at TRUE professional management... IE companies that manage thousands of units.. they will then hire an on site manage and its up to them to keep the on site folks from stealing you blind.

I would go talk to your banker now and get a plan together for when is the right time to go into more properties. 

The other thing you could do is find private money from an investor to go in on a deal with you. If I had money I would bet on you. 

 I pay my guys between $14 and $16 depending on their skills and whether they are AC certified (that is important in Arizona). 

A lot of people think that they can fix anything but cannot do it fast and economically.  A good apartment maintenance tech can do almost anything in a rapid fashion to get an apartment ready to rent.  That includes paint.  My guys can install flooring and tile (shower walls and floor) which is good to have.

I cannot stress the importance enough of having someone experienced in apartments in this role.

Is your handyman an apartment specialist?  There are maintenance personnel that have experience in servicing apartment needs.  You will learn with time where the best places are to put money into the units.  But if you have someone that can fix anything in apartments at a good price and you support them with supplies, that can really help your bottom line.

I am not suggesting that you change out a good person, just that you evaluate it. 

It has taken me many years to learn the best way to fix and upgrade.  Couple this with good marketing and leasing and you will have the competitive edge.

@Rochelle Wilkinson, yes NOI is net operating income. Us multi guys can get pretty nerdy with metrics and stuff on ya. Don't worry about it. I would assume the $68k per unit estimate is ARV or after repaired value. How much in repairs do you think total? Divide that by 60 and get a per unit repair requirement. You can then estimate what each unit is worth as is. $68k per unit sounds high to me. Is each unit bringing in $750 or something? What is the average rent per unit per month?

Given the information that you have, it is important for you to understand the value of the property on today's market.  Talk to an agent that specializes in apartment sales.  They always want to make contact with owners and will have a lot of information for you.

If the value is there, the bank might be willing to loan you more money to get some of the critical repairs done. 

Finding the resources to get these repairs completed are important.  You cannot just go out and hire an HVAC company to put new systems in.  It will cost too much in most cases!

I don't have any problem telling the vendors that it is not easy to make money on apartments and that I need creative ideas to keep the budgets down.

I had my maintenance guy get certified in HVAC. I then hired someone to install a couple of units.  I paid him extra to teach my guy how to install.  I still hire the HVAC guy to do some repairs and for consultation.  He is now a golf buddy of mine and we have a great working relationship.  AND, I get my systems installed for a lot less money now.

You are doing awesome! I'd suggest talking to a local bank that handles in-house portfolio loans and see if you could qualify for a loan using your apartment complex as collateral. Based on your track record I would believe any banker would be impressed with your management ability.

whats an NOI?? i told you i am clueless

 3 million loan on it.. based off what a real estate appraiser told me  it is worth around 4.5 but that was not him coming out and looking at the property.. just going off calculations of value of each unit times 60 units.. i think he said he valued each unit at around $68,000 each