All Forum Posts by: Aaron Merriman

Thanks for reaching out Coco.  I just emailed you our presentation.

Regards,

Aaron

We have a proven 12-year track record of doing value-add real estate investing. Investing in coastal residential property within Los Angeles and Orange County. We have a buy and hold strategy.

Property is acquired through the use of investor capital. Investors are paid an annual rate of return up to 9% which is paid on a quarterly basis with no fees.

In 12 years of operating, we have never missed an interest payment and we have never lost money on a property.

Our investment is great for someone looking for consistent cash flow income.

If this sounds like something that you might be interested in, I am happy to forward you our investment presentation. 

If you are located or will be traveling to the southern California area, we love to give tours as well.

Regards,

Aaron Merriman

Hi @Andrew Laing,  

If I were you, I would amend your purchase agreement to have the property delivered vacant.  Your risk exposure is high if not.  The cost of an eviction is high.

How does the rent the tenant is paying compare to market?  I suspect it's well under market.  Either way, if you take possession with the tenant living at the property, you'll have to notify them that you're canceling their existing agreement and they'll need to sign your agreement or move out.

Aaron  

We have a proven 12-year track record of doing value-add real estate investing. We invest in coastal residential property within Los Angeles and Orange County. We have a buy and hold strategy.

Property is acquired through the use of investor capital. Investors are paid an annual rate of return up to 9% which is paid on a quarterly basis with no fees.

In 12 years of operating, we have never missed an interest payment and we have never lost money on a property.

Our investment is great for someone looking for consistent cash flow income.

If this sounds like something that you might be interested in, I am happy to forward you our investment presentation. If you are located or will be traveling to the southern California area, we love to give tours as well.

Regards,

Aaron Merriman

Hi @JP P.  to evaluate your deal, don't worry about the purchase cap rate, focus on the stabilized cap rate.  If your rent numbers are accurate, the units are quite a bit under market which is a nice value play if the building is in decent shape.

It's also good news that the tenants are on month to month leases.  If you purchase the property, I would immediately let them know that rents will be increased to the 750-800 range you referenced.  The they will most like move out but that's fine you will be able to get your own tenants in that you have screened.  Most likely, someone paying 550 won't be able to afford an increase to 750-800.

Really do your homework on the rents though and see the quality of unit you are getting in that price range vs. this property.  I would be surprised if you don't have to spend a few thousand per unit to get them up to snuff but it's worth it if you can the rents which will increase the property value.

My biggest concern with you scenario is your lack of cash.  It doesn't appear you have enough capital to improve the units or weather any vacancy.  You're also not insulated against any major repairs that may arise even if you don't do anything.

Hope that helps,

Aaron   

@chris longest,

Glad to hear it worked out.   You're in a much better position.

I use the Hubspot CRM tool and it's great.  The free version does everything I need and is extremely intuitive to use. 

Hi @Account Closed, sorry for the slow response.  To answer your question, having the property be delivered vacant is part of the purchase agreement.  If you haven't already done that, you can always add it as an addendum but you're in a much weaker negotiating position, especially if you are passed your due diligence phase and your deposit is hard.  

Aaron

Hi @Account Closed,

Be careful with this one.  In some states, even if the tenant is on a month to month lease you'll need to give them additional time to vacate if they have lived in the property for longer than 2, 3, etc, years.

It sounds like you are buying the property occupied.   With a house, is there a reason you're not buying with the house vacant making the tenant the sellers problem?  The challenge is that it's going to get expensive for you if the tenant goes sideways and you have to evict or do cash for keys and they end up destroying the property.

The tenant may be great now but things can go sideways quick.  I would try to mitigate that risk and put the responsibility on the seller.

Aaron    

Hi @David Rutledge, It looks like you are based in Irvine, CA.  I am also based in Orange County.  If you would like to learn more about how we invest and keep your investment dollars closer to home, let me know.  I am happy to send you additional information or schedule some time to discuss further.

Thanks

Aaron