All Forum Posts by: Tracey Williams

Hi Joel, thanks for taking time to reply to my post and sharing so much information with me.
I am currently talking to an equity partner and I have forwarded the documents to him and he said he will get back to me before the end of the week but mentioned 30% - 40% . Am still searching for a private lender. Like you, his question is also centered on the 40% vacancy.

The property was built in 1969
The market rent once stablished will be around $600. The high vacancy is as a result of improper management and I believe when the last owner knew he was going to be foreclosed on he stopped leasing when old tenants moves out. There is incentive for referring a new tenant
I have been investing in SF and I believe RE is always providing one with opportunity to learn everyday. My strongest potential is that I am a fast learner and stay focus. This is one of the reason I am surrounding myself with team members that have experience in multifamily unit.
I am also rigorously doing my due diligent to avoid any unforeseen happening in the future. I know am going to need a lot of information/ advice in this journey and that is why bigger pocket is a part of my team too!

I'll like to PM more details about the property and will appreciate your sincere contribution.
Thanks

Thanks Nathan,
The reason is that the bank has just taken it over from the last owner. It's distress. I learnt he wasn't managing the place properly with his management company. I guess once it's been foreclosed the vacant ones are not been offer for rent anymore and the bank wants to sell AS IS.

I found an apartment complex that is been foreclosed on. The last owner paid $3M for it a few years back.
- 100 units that is 60% occupied
The current rent is $520/units. The asking price is $1.3M but because am going to be using private money or equity partners, I want to be sure what price to offer.
It's in a nice location, 10 of the units that are not rented needs complete rehab while others needs cleaning and painting. The rehab estimate is properly going to be around 100k. The inspection report shows the roof can still be good for another 10-15yrs.
The occupancy rate with other apartments in the area is around 75% - 90%
I have tons of documents from the seller that I do not understand and will really appreciate anyone willing to help me understand it. I'll be glad to PM them to you. The bank is trying to employ a new management in place.

My questions is what will you offer for this property? Jon and others with broad understanding of the 50% and 2% rule input will be greatly appreaciated.
Thanks

I lost a $1000 earnest money to HUD earlier as well and I am planning to write it off on my tax

I'll suggest wait untill the lease expire as well
Good luck!

Stan - you are right! The bank agent was implying that if I use an agent then the price will have to go up to cover the agent fees
Yes- the property is listed in the MLS but not with any agent. The bank agent listed it and he works at the bank

Will- I am not familiar with the PSA or the GPA that Jeffery mentioned earlier since I am just starting out in RE.

Thanks for your generous contribution!
Tracey

Jeffery,

What is GAP coverage?

The listing says "$1000 agent Bonus"- Should I ask for this in my offer since I am not using an agent.
Tracey

Thanks Jeffery,

What are the key points I will need to have the lawyer to include and how much do you think a laywer will charge for this

Hi friends,

I went out to look at a property today. An officer of the local bank that owns it came to show it to me. He inform me that if I have to bring in my agent I will have to come up on my offer. I like the property and will like to purchase it.

My questions is?

1. Do I need an agent to represent me when am buying directly from the bank?

2. If I do not use an agent how do I go about writing the offer or contract for it.

I intend to pay cash for it.

If you have done this kind of transaction before kindly share your experience.

Thanks, Tracey

Bill,

I just view the video, great job!
I see why you get full asking price on your properties. The kitchen is so beautiful!!
Keep it up
Tracey