All Forum Posts by: Jeffrey Gordon

Kevin, you still looking? we have something pretty special.

j

Brandon bashing Detroit? Has he ever left Washington State Small town ville?

We are looking at acquiring a 12-18 duplexes in our farm area that we currently have 9 buildings in.  We have been working on two buildings in the last year with our first Section 8 tenants.  We have a good "case worker" and have found the premiums for these tenants to justify the extra work and risks.

Being new to the program we are not familiar with the predictability of future section 8 rental rates.  Depending upon the final negotiations we might need to place most of these newly acquired duplexes into the section 8 program--our case worker tells us they have a long list of quality prospects.

To finance the purchase we are envisioning some "preferred equity" capital being sourced and our goal would be to refinance the first mortgages in 3-5 years and pay off the "preferred equity" at that time.  With the premium rents we would be in a position to make additional capital contributions monthly to the first mortgage and pay down the balances enough to refi out the "preferred equity" investors.

So our question is how volatile are section 8 rents, are they likely to drop if new inventory pushes down market rental rates etc. and how responsive is section to the market?

thanks

j

You could always live in between Austin and San Antonio---that is where Amazon put there new 800,000SF operation--in the middle in San Marcos.

I would think your lender is going to do the environmental phase 1 off existing data bases.

You might want to do a little research after they do that to decide if you want to go to the next level.  If you are not planning to do any site work and disturb things down the road then you probably have less exposure--I think your lender is going to drive things, but when you see what can be required if you have any issues.

you might contact these folks and see what they might bid for a review.

if you pm me I can provide you someone who did some soil work for us in DC much lower than the going prices.

I came across a property that met several requirements i have for purchase. In checking it out it became apparent it went into default in 2007. I found the case online at DC Superior Court and last month a judge filed the order approving the lender's request for judgement and decree for sale of real property.

I am under the impression that with that order the lender can proceed to force the auction of the property.

Never having worked this niche before, but having a very high interest in this particular property, I am not sure if there is any ability to reach out to the lender prior to the auction or how I can make sure to track the auction date/time etc. if I decide to attend and bid on the property.  Any local DC insight would be helpful and appreciated, I am also out of the DC area for at least a couple of weeks so will be having to work this remotely until i return.  thanks

you might consider doing your own research in the market areas you are interested in.  This type of research can get pretty esoteric in a hurry.  We are tracking land sales in a 15 square block area in DC over the last  3-20 years (mostly the last 3).  If you are looking for a bigger more general model you might find it from RE industry in the area, the better the data the more proprietary it is going to be.

I would recommend you look at rental valuator, we have been using it for smaller projects.  Not sure about syndicated deals with costs and splits etc. though.

j

call the Bawld Guy  Jeff Brown

your best bet is to look at Rental Valuator.  very complete anlysis and cheap compared to the time it would take you to create even a basic model in excel.

j