All Forum Posts by: David Veeder

This group has a sales pitch, however there are many investors that are actually purchasing deals through Brad.  I am in two of them.  Brad has a seminar this coming weekend. I think it is $97 but you will learn a lot and get a lot of contacts if nothing else. 

 http://www.bradsumrok.com/Rat_Race_2_Retirement

The other group that has a pay for program but also has free events is Lifestyles Unlimited.  I started there and I find there Case Studies filled with both single and multifamily investors with experience.  Lifestyles Unlimited has a free case study this Thursday night 3/10 starting at 6:30 pm at 106 Decker Court #300, Irving Texas, TX.  http://www.lifestylesunlimited.com/

Weather you join these groups are not I think it is worth while to check them out, learn, and network.

I would call Lu Ann Blough at Exchange Resource Group she is active in sharing information at many DFW meet up groups.   https://www.linkedin.com/in/luannblough

Buying at the auction is risky.  You don't have time to do a good evaluation of a house before the auction.  So often you find expensive surprises.  Don't think it is a good option for house number 1-5.  

Plus with auctions you need essentially cash from my understanding.  I believe you need to put a large deposit on the house and then pay by the end of the day if it is a regular foreclosure auction on on the court house steps. 

I have gotten emails asking for help at auctions before from George.   

Hello trey.  Is sounds like you need some education.  I buy and hold properties so sometimes I purchase from wholesalers but have done none myself.  

Doing wholesaling is a social thing you are in contact with all sorts of people.  I think that you will find the most value in networking with other investors.  A lot of these type events will have other professionals at the events that will help you build your team.

There are two that I suggest currently on the Dallas side:

http://dfwinvestors.com/

http://www.meetup.com/DFW-Real-Estate-Investor-Net...

They seem to have more real people doing deals than presenters selling programs for thousands of $$.

Another meet up that is probably closer to you is:

https://www.dallasreig.com/

I think they meet every Saturday in Arlington.  Haven't been to the group to know the structure and what they present, but another land lord that I talk to seems to think it is worth while attending it.  

Good luck and contact me if I can be of any help.

You may have higher vacancy and turn for a few months as well.  Every apartment that I have been involved in or talk to people about has an our flow of people when taken over.   Then there will be the few that you need to evict as well.  Usually takes a few months to get everything stabilized.  

I have used Finishing Touches on three of the initial renovations on my rental properties. They are one of two contractors that I will recommend to new investors. I have used them over a span of 6 years. I think they do 200 to 250 home renovations a year, so they have a pretty good system and I value there opinions. I have use them on my 100K to 170K ARV rental home remodels.

I agree with the figuring the property taxes at the purchase price.   Both apartments my group purchased in the last two years were bumped up based on purchase price.  The first one we purchased we had to litigate with the city to get them reduced.

To figure out purchase price you should discount gross rent.  There will be some vacancy.  I would probably 5 to 7 % vacancy.

Gross Rent:  23 x 550 =12,650
Vacancy:      12,650 x .93 = 11,754.5
Yearly:          11,754.5 x 12 = 141,174

Annual Expenses per door:  23 x 3,500 = 80,500  Tenant paid Electric

NOI: 60,674

Divided by Market Cap rate:   60,674 / .08 = 758,425 value
Determined by market you are in.  Dallas cap rates for C properties have fallen probably to 7 to 8% and maybe even lower, however in out lying area's they may be higher.

Defiantly have some money in reserve for Cap Ex even if not currently needed. Many banks will require at CAP EX set aside of $300 per door per year.

Keep in mind if you are paying for a management compay to manage the property of this size it will be close to 10% of gross rent collections.   The $ 3,500 figure is figured at closer to 5% for management and does not include debt payment.  

You can PM me too.  I am willing to share my experience and help you were I can.  There is a group that just started a meet up in Addison, TX.  There next meeting is on March 7th.  The meetings are free and have quite a few experienced investors.  It is run by people who have been in the flip and buy and hold real estate market for years.  Here is there web site: http://dfwinvestors.com/

If deleted from the post message me. 

In my experience if something has been in the MLS for 50 days for rental. The rent is over price or management company is not showing it. Properties might rent for the price there asking, but what is the condition of there home. If all of the properties were at 50 days then I would worry, but if it is 10 or 15% then most likely those properties are not priced properly. Of course if you demographic is students they don't often sign leases throughout the year.

Looking to buy and hold or flip?