All Forum Posts by: Alex Flowers

I'd love a copy please. 

@Jordan Vires

Yea, sounds very similar. My thought is that the rents are low and under collected.

I've posted once or twice about a small apartment complex. The building are in good shape, new metal roofs, the location is a growth area, a large part of the lot is undeveloped, never a vacancy, very good intangibles.

The problem is that the owner has no record keeping ability. He does not have any way of accounting for his revenue and expenses for the last several years. He is in his mid 70's with an ailing wife, so I know receipts were the last thing on his mind. The only ones he know for sure are the utilities, taxes and insurance. He does most of the maintenance himself, although a couple of tenants told me it is not very prompt. He knows his rent rates, but can't/won't verify rents being paid. I believe he's had trouble in the past selling this property, as I know it sold 4/5 yrs ago and he carried/foreclosed after 18 months. It's also been under contract about 6-8 months ago.

I have pro-formas, a good looking, full property, a good location, a semi-motivated seller, a good rapport with the seller, plus some interesting financing options.

If someone with any insight could reply or PM me I can discuss the specific numbers.

Good evening. I am starting my pre license course next week. The broker that I want to hold my license is in a small town about 60 miles away from my area. The broker does not have MLS access in my area. Can I put my license there and pay for my own individual MLS access and/or Realtor dues? Thanks in advance for any insight here.

I recently received an appraisal from an owner of a commercial property I am interested in. The appraisal was done 6 months ago for a pending offer that fell thru. This is my first step into multi-family, so I have a few questions regarding the expenses reported by the owner. The property is a 6 unit building,a 2 unit building and a mobile home. The apartment buildings are all less than 20 years old, have had metal roof in the last 5 years, and seem to be in generally good condition. Pro forma total rents equal $45k after vacany adjustment.

The Analysis used to determine the net income for the property allocates 1.66%, or $750 to repair and maintenance annually, 4%($1800) to administrative/management expenses, 3%($1400) to general services and 3%($1350) for reserves. Obviously the number for repair is low. The owner himself told me he does a poor job of record keeping and really can't say with any certainy what that number should be. He is in his mid 70's and does all his own maintenance. I don't have an opinion on the administrative and general services, but the reserve fund seems rather low. He indicated the mobile home tenant is responsible for maintenance on that unit. All together with taxes insurance and water, the above equals 31% of gross rents, giving me an NOI of $31K. How do I determine a fair number for NOI? What else am I missing from the expense side?

Thanks in advance for any assistance.

I'm meeting the owner of a small 9 unit complex tomorrow. What information do I need to ask him for before I can start thinking about an offer? Proof of rent, taxes, Insurance, maintenance records?...i know there must be more, this is my first rodeo with any type of mfh and I don't want it to appear that way. Does anyone have a an all encompassing check list they use?

I've been doing some research on a 9 unit complex for sale. It's been listed for a year. It is a 6 unit apt building, a 2-story/2-unit building and a 3/2 mobile home on 5 acres with a pond. It is fully rented, and the tenants are a good group. Total rents are 4200/month. Tax is 1500/year. I did a couple of drive by looks and it is a nice looking property. I did some probate research and it shows the owner selling the piece 4 years ago for 208k on a VL with 10k down and the remaining paid at 3k/month. Needless ho say, within 18 months the foreclosure process was finished. The owner has extensive investor activity in the area, so I know he knew the novice would never be able to pay the payments. Now he is asking 295k, owner financing available. I would like to offer 30k down with 195k on a 5%/15 yr note. I am thinking he will reject, as he may be looking for another sucker to bite on the high payments and another foreclosure. Any thoughts? What info am I not including that would help?

@Paul Wurster

didn't know how to insert your name with the @ in my earlier reply to you.

@Erin Plitsch

Thanks for the comment. I submitted three offers today and they all had the 10 day inspection period. I have two more offers going up next week. My agent told me the same thing you did. Any referral for home inspections?

@Joe Fairless

Thanks for the comment. I am in the Air Force. BTW, checked out your website. Good reading. I'm looking forward to watching your interview with lisa phillips. I listened to a few of her vlogs on under 30k investing, as that is how I am starting.