All Forum Posts by: Wes Butler

Rule number one, verify you have a workable opportunity. These units are absolute pigs. The owner is a slumlord, and this deal will require a special kind of investor to take this on. 

Tenants are renting these properties, so that proves they have some value, and most of the renters are on government assistance, which means rents are predictable. Problem is, only half the units are rented at the moment. This is probably because when a unit doesn't pass section 8 requirements, then the slum lord landlord just lets it sit vacant.

My plan now is to cherry pick which properties can be rented and managed the easiest, then determine their value. If the owners won't sell me just the properties I want, then the whole deal has to be worth the value of the good properties.

This is not a newbie first deal. I would be in over my head right out of the gate. So I am going to keep looking for a partner. My plan is to nail down all the specifics, then post it on the marketplace forum. 

Send me a private message if you have advice on how to put this together. Thanks!

Wes

I will be in the area on that day, and I will try to attend. (I'm in town visiting family)

very good advice from everyone. I am working on putting this together. I will update this thread at a later date.

Good advice. I've been trying to find others on BP who are in my area, but I have had zero luck. I've used keyword alerts and I have searched. If there are active REI groups in my area, then I haven't found them. lol. I'm new to BP and to REI, but not investing in general. I have worked in finance for almost 20 years now -- I know what sharks look like. *grin*. I also know what a good deal looks like. I just need to know how to price this. Good advice from above that I am going to start working on. thanks, Wes

 Thanks, Will. I figured I could put this deal together then go to the marketplace to find a partner, so I am hoping to get advice on how to price it, and especially learn how to make this attractive to a potential partner. Should I go to the marketplace asap? or wait till I have the deal structured? Maybe I should find a partner right at the beginning so the deal is structured to suit his/her preferences?

I can say with certainty that owner-carry is NOT an option. Being in their 80's they want out completely, and the heir (my friend) is retired himself and has no interest in something complicated -- yes, to him this would be complicated. Trust me, this is a no-go. lol

Wes

 Good advice. thanks. I hadn't considered apartments when I started  on BP because I feel I need to cut my teeth before I chew, so I find myself woefully unprepared for this. I have no source of funds, so OPM is my only option at this point -- which is why I am seeking a partner.

Wes

 True, but I didn't want to violate BP rules by soliciting. I know much more, about the deal, but I don't know where to begin to price this deal. I am hoping to find someone with the funds who can walk me through this deal and in return this person would get the biggest piece of the proceeds. Its just too big for me, so even if I only get a tiny piece, then I would consider that fair. I just don't know where to begin.

I was content with my newbie strategy of buying one sfr -- I can figure that out, but 26 units as a package deal is too large for me to accomplish on my own.

Wes

I just confirmed that these properties are all owned free and clear. no loans on them. This deal keeps getting better!

Wes

To be clear, there are 26 doors, not 26 separate buildings. --Wes

I'm still new to BP, so I am not sure on the proper etiquette... Please correct me if I should post this some other way.

I have been working on finding my first deal, and this BIG ONE landed in my lap. 

26 units all within about 2 hours of Albuquerque. I just found out about this today, so more details will follow when I get them. I am pretty sure these are all apartment units, and also pretty sure they are completely paid off. My friend (in his 60's) is the oldest heir of a couple in their 80's (still alive). He wants to sell all these units as a package deal. These are NOT listed on MLS or with an agent. There is no property manager, and the couple manages the properties themselves. I don't expect fire sale prices, but probably pretty close.

This deal is too big for me, and I am not in a position to seek hard money.

How do I find a partner? I know I bring nothing to the table, except my good looks and a willingness to do a ton of legwork. I am not expecting a 50/50 split because of this, but I am sure if I find an interested person who has the ability to close the deal then we can agree on a fair split.

This is going to be a very good deal, but I have no clue where to start.

Any and all advice would be greatly appreciated.

Thanks, Wes