All Forum Posts by: Travis Wilkes

This sounds like a hard money deal, most banks would walk away. If it cashflows why not finance 100%, just curious?

@Karene Burnett I am an investor. Being that the home is next door, I would say it has even more value as a rental due to the convenience factor.  

Jeremy, 1st off congratulation on finding a way to move forward with the project, even if not in the original vision. I am knee deep in a redevelopment at the moment and have been involved in commercial construction for well over a decade. I am in Round Rock as well and would be happy discuss my experiences. Feel free to connect and I will get you my mobile number.

If your values are correct, and you have the funds to do the deal and the rehab. It sounds like there is some opportunity. As Ellis mentioned there are some unknows with the info you posted so a quick deal analysis cant be assumed. I am in Round Rock, know the market well and would be happy to discuss further.

Thanks Nicholas, I will study those sections.

Hello Nicholas - Do you (or anyone on BP) know anything about "the rule of one" when it comes to depreciation on assets. I had a CPA firm, in a seminar mention this and they described it as - if you purchased a new property and go to replace the HVAC as an example then you can depreciate the existing HVAC fully in the year that is was replaced. I may be butchering this as it was awhile back, but does this sound familiar? The seminar was about cost segregation and this was thrown in.  

Thanks in advance

I would be willing to partner with the right person/team on a multifamily property in Texas. Preferably the property would be in the major Texas markets or along the IH35 corridor from San Antonio to Dallas. Partnerships are great if set up properly. Good RE attorney who is well versed in partnerships. The docs need to go over expectations and responsibilities. As long as goals are aligned and there is a mechanism in place for adjustments as those goals shift in the future.

Not to get this conversation sideways but offering another perspective - Using an agent for the buyer isn't free at the end of the day its added to the cost of the product. Not having a buyers agent does leave room for the seller and buyer to negotiate a little more on that final price. It also leaves room for the buyer to get taken advantage of if he is new. An attorney can help with this and at the end of the day is usually cheaper than 3%. I have purchased many properties this way (usually at a higher price point) and it's always worked well. In one case I did pay the listing agent a 1% bonus as the deal was a complicated and I knew it would require additional work on their end. You want to be fair! If you have an attorney and the knowledge IN SOME CASES it may not be worth bringing in a buyers agent. Best of luck.

Another option may be to find a local partner that can also invest funds and look at a multifamily deal. If you decide to look more into the Temple market I would be happy to share my experience on my commercial property I purchased there a little over a year ago.  

Congratulation, mind sharing the expected cash flow?