All Forum Posts by: Ryan McLeaird

I'd be interested in chatting about it if you want to shoot me a DM with your number.  

I echo all of what Aaron says above.

1. From who I see bought it earlier last year off of MLS, it looks like you bought this from one of the "big-box" wholesale companies and quite possibly paid too much to begin with.

2. For just a bit more in price, there are a few newer build communities right in that area. Until they sell out buyers have a nice newer option close by. 

3. Like Aaron said above, anything priced well and is somewhat attractive to buyers should fly off the market right now.  And you're competing against detached homes vs. your townhome/duplex. 

4. My constructive criticism, your rehab could be a bit more attractive.  Not sure why you went with a green trim and garage combo for instance. It's not a bad job, don't take the wrong way please, I would have done a few things different.  

5. I'd call the agent for 11831 Burning Bend (very nice rehab that they withdrew, priced $12k below yours) and find out what happened with that sale (your agent should have already done this imho).  This one is almost identical to yours and you can get some insight on what they experienced. 

There’s a lot more info you need. 

How much revenue is it making? What are all the expenses associated with it? What is the unit mix? What are the rents per unit? How many are vacant on average? What are the rates and occupancy % for any competition around?  

These are the basics I’d get to at a minimum get a ballpark on value. 

I'd recommend checking out a storage facility builder and get a good idea on construction costs, at least a ballpark and you'll possibly see that spending $1.6M for the dirt alone may make your project a go or no-go.  Check out the calculators at Trachte Cost Calculators and start plugging info in.  It also has great info on other cost components you may or may not have thought of.  I've been building out my own analysis spreadsheets as well so that I get a good feel for the numbers and how they affect a deal. 

I'd also recommend AJ Osborne's podcast "Self Storage Income" to get a good feel for the business in general.  

I'm working on purchasing or building my first facility and I've been a sponge for info the last 2 months as there is a lot to soak in.  

Luckily I've been doing a lot of networking and I had a great call with a local guy that owns 7 facilities and he also runs a construction company so we're talking about partnering up for my first deal.  I've been doing a ton of the leg work to find a location and get properties under contract to do due diligence and I'm also raising the money to fund the deal(s) in addition to bringing my own capital investment.  

Good luck to you! 

Thanks for all the feedback everyone. After speaking with a few attorneys it appears we are going to fight some of the language and a non-attached/recorded exhibit and hopefully nullify the CCR's. More to come

Bryce, if you want to get on the phones I have thousands of leads and phone numbers in this market that need to be called.  I'll pay you when we lock up a deal and I have people in place to actually go see the properties and negotiate the best prices that will be somewhat difficult to do virtually.  

Has anyone had any experience working with small neighborhood associations to get covenants and restrictions amended?

We have a piece of land in a great location of San Antonio under contract to purchase, it's approx. 1.5 acres.  It has never been developed due to no infrastructure (sewer and a street need to be put in) but home values have increased significantly in the area and the project would now be viable even with this massive cost. 

Our title co. found a set of restrictions and covenants put in place in 2011 when an old developer owned the property.  The parties on the documents are the declarant (developer) and a tiny neighborhood association that appears to be just one guy.  His name is all over it saying nothing can change without his approval.  

The biggest kicker is that it says the lots have to be double the size of what we expected, cutting our total number of buildable units in half and thus making the expense far outweigh the benefit.  

We've called the guy multiple times and he's only answered once, with a gruff and whatever attitude toward the whole thing.  We went by his house just a block from this land and tried to have a talk with him but he just wanted us to leave a bunch of paperwork with him and he'd get to it "in a few weeks".  

Any ideas on how to motivate someone in this scenario that has no real motive or interest in helping us?  

The prior developers should never have agreed to these restrictions when they rezoned from MF-33 to residential zoning as the numbers simply do not pan out.  That much is obvious because they never built and eventually they were foreclosed on and had a huge lien on the property from the old engineer they worked with. 

I've consulted with a few attorneys and there really is nothing we can do outside of working with this individual.  

Like what Rick said, I would still go look at it and try to get it even if it is listed.  He makes 3 good points.  

There are a couple big wholesale companies here in town and they offer on pretty much every MLS listing that has potential to be a wholesale deal and I see them get contracts all the time.

If the deal is a deal and you buy it (contract it) right, an investor will still pick it up from you as you did the legwork to find the property and negotiate it to the right price.

Bet this guy would be very interested 👆🏼👆🏼

Chris, go on Victor Maas’ website and I believe it’s under forms. He lays the entire thing out for you. What disclosure you need and what paperwork needed. 
Then either use Victors law firm or someone like Patrick over at West and West to close the deal for you. It’s going to cost you about $800-1500 in closing costs to get it done. But it’s pretty simple once you do it one time. 

Is the 4% 30 year lender you have doing a cash out refi or just straight financing?