All Forum Posts by: Zachary Ware

I agree with @Scott E., 

Include as much detail on the deal and the reasoning behind your assumptions. You will see a lot of helpful feedback in the forum. 

I would recommend Dereck Buckler at Urban Heights Realty.  He's very knowledgeable in the area! PM and I would be happy to connect you.

Goodluck! 

Even smaller properties should have some form of documentation for their previous year's accounting. This can even take the form of a tax return. Below are the top 5 items Due Diligence items I would be looking for. 

1.Rent Roll: A rent roll provides an overview of the current tenants, their rental rates, lease terms, and any outstanding balances. It helps you assess the income potential and occupancy status of the property.

2. Operating Expenses: Request a breakdown of the property's operating expenses, including utilities, maintenance, insurance, property management fees, property taxes, and any other relevant costs. Understanding the expenses helps you evaluate the property's financial viability. If this is poorly kept up with, you will have to rely more heavily on assumptions. 

3.Leases and Rental Agreements: Obtain copies of the existing leases and rental agreements for all tenants. Review the terms, including lease durations, rental rates, security deposits, and any special provisions. Understanding the lease terms helps assess the stability and potential risks associated with the property's rental income.

4. Contracting Agreements: These may include service contracts with vendors or suppliers, maintenance agreements, or agreements with any on-site staff. Reviewing these contracts will give you insights into ongoing obligations, potential costs, and the overall operational structure of the property. It's essential to understand the terms and conditions of these agreements to evaluate their impact on the property's financials and management.

5. Recent Renovations: In addition to the previous documents, it's important to inquire about any recent renovations or improvements made to the property. Request information regarding significant upgrades, repairs, or renovations that have been completed within a specified timeframe. This could include renovations to individual units, common areas, or major systems such as plumbing, electrical, or HVAC. Understanding the scope and timing of recent renovations will provide insights into the property's overall condition, potential maintenance costs, and any value-added enhancements that may have been made.

Hope this helps! 

It's great to hear about your journey into real estate investing. Starting with education and joining forums like this is a fantastic step forward. I understand your eagerness to learn, practice, and put together deals, but it's important to strike a balance and take things step by step.

Learning and building relationships are critical parts of the real estate journey. Establishing connections with partners, lenders, and agents early on can have exponential returns down the road. Approach potential partners and professionals with respect, a genuine desire to learn, and an understanding of their time constraints. By being open, transparent, and willing to put in the effort, you're likely to find individuals who are willing to assist and provide guidance.

For this particular deal, it seems that bringing in an experienced investor, preferably someone familiar with the area, could be your best bet. They can provide the necessary experience and knowledge to conduct thorough due diligence on why this deal has been sitting on the market for so long. Additionally, they may be able to contribute the funds needed to make the purchase. Deals of this size often catch the attention of private lenders who are more flexible than traditional banks.

Traditional or agency lenders often have stricter guidelines and may be more focused on larger commercial properties. Private lenders, on the other hand, can be more flexible in their lending criteria and may see the potential in funding a 10-unit apartment complex as it still qualifies as a small multifamily property

Remember, real estate investing often requires creative solutions. Be proactive in seeking out potential partnerships and explore financing options beyond your immediate resources. 

Best of luck with your real estate journey! 

I have heard great things about the Multifamily Mindset. They have an extensive mastermind group that are actively putting deals together! I would highly encourage local meetups as well. I actually learned about the group at a meetup in Austin, TX. 

I would recommend checking out The Complete Guide to Multifamily Real Estate Investing from Break Into CRE Academy. The time and money upfront were definitely worth it!

I would recommend speaking with Hilary Shepard who is a realtor and investor in STR and LTR in Montana.

You can visit her website at  https://montanawest.com/profes...

I would recommend Hilary Shepard. As an owner she will certainly be able to help you find the perfect opportunity.

Her website link https://montanawest.com/profes... 

I am excited to move to Austin and work helping to lend on investment properties. Also Interested in the Airbnb market for investment opportunities.