All Forum Posts by: Dale Slater

@Connor Williams Personally I would look for a 9 unit building or more. One set of expenses, 9 incomes under one roof, one foundation, centrally located, economy of scale is far better.  worst case 3-4 move-outs your probably still breaking even or cash-flowing. Most apartment house units are easier to turn. 

I would check all the big ticket items on the properties, Some of the SFH could be a wolf in sheep clothing. Check roofs, foundation, furnace, plumbing, etc. Imagine 3 roofs or foundations are bad on the houses. The deal doesn't look so good now. You could walk or negotiate lower price, negotiate repair funds, etc. Bulk is sometimes not best with SFH.

To go more on Chris Hunters answer which is 100% correct. Find out the situation as well. Once I found the need or motivation to sell, out of town owner, class D property, wanted funds to buy closer to purchase more property in there area. Then, I found out the situation, 2 brothers owned the apartments. one was the money man and the other ran the property from a far or tried to, property in the red, poorly managed, during the real estate crash, They had no day-to-day operator. This changed the whole deal. It went from 20% down/bank finance to 100% seller finance and a repair check at close. Took 3 months to deal, earn trust and close. Motivation & Situation equaled a very hard don't wanter. Find out the situation as well as the motivation. 

Depending on the equity & If they property is currently held in a LLC or something similar, you could be added to the company as the managing member. In a nutshell, if you found an asset based, non-recourse type lender. You could, possibly refinance the property and quit claim the original owners rights to the property. Since its a refi and not a purchase you should be able to avoid capital gains tax. He gets his cash and you acquire the property. I would suggest talking to a very solid real estate attorney and CPA to check all legalities on a deal of this nature. Ive never done a deal like this but I sure would be ok doing one like this as long as all the legalities where covered and square.

Sounds like the newest con to me, they probably will end up in jail for fraud soon, just my thoughts. Their are plenty of books, education courses and active investors in your area you could network with for free or low cost.  

If there is a discussion on this topic, well something is phasing in or should I say out in the market place concerning brokers/agents... or there would be no topic on this. 

I created a highly targeted mailing list of apartment owners from co-star. About 20% were sent back to me. For the cost of the system... I feel it should be far more accurate. 

I do like the co-star setup  very much, don't get me wrong.