All Forum Posts by: Anthony Chara

Yes Jim, it is standard practice to ask for those documents. Just don't be surprised if they tell you that they won't give them to you. Make sure they understand that you're asking for the bank statements for the property's LLC and the tax returns for the LLC, not their own personal data. Sometimes they just don't understand what you're asking and they assume you want to see their personal information.

Other documents to ask for; 24 months of Rent Rolls separated out month by month and 12 months of Tenant Ledgers. Your bank may want up to 36 months of RR's so they should be prepared to provide those to you. On this small of a project they may not have Tenant Ledgers unless they are using some type of management software. BTW, QuickBooks and Excel are NOT management software!!! lol

Eventually, you'll want to review all of the individual leases as well including the applications, credit check and criminal background check information too. Don't expect to see these docs until you're under contract though.

Good luck to you!

Both look great. Keep in mind that you will get calls from apartment owners or managers telling you to stay off of their property with the one on the right. I'm not saying not to do it. I'm just letting you know to be prepared for some angry calls.

Yes, you can have someone co-sign on an FHA loan with you. No, it will not make the requirements less strict.

You might be able to find managers for smaller properties on NARPM.org.

Prosperity Through Real Estate has a subgroup on Multi Family that meets monthly. Check out their website for more details. They meet on the 3rd Thursday of the month at Denny's at 10700 Jefferson Blvd. Culver City, CA 90230 from 7pm to 8:30pm. Tell them Anthony Chara sent you!!!!

Sup @Stephen Moore!!!   Yes. I have a couple of students that have found and closed deals using Loopnet.

Hi @Christina L., in addition to what @Brian Adams replied, the cable companies will, if the deal is big enough and I don't know if 22 units is big enough, pay an upfront fee to bring them on board. You do need to be careful though. In some states you can't limit your residents to only cable, so you may still need to let them put in a dish. However, on our properties were we have cable, Time Warner being one and Comcast the other, they both paid us fees between $15K-$22K upfront to become the 'exclusive advertiser' to the property. Meaning, that when a new resident moves in, we only put literature in our 'new resident welcome' package about the cable company and we don't allow any advertising from any of the dish companies. On top of that, we receive a commission on any revenue generated by the residents purchasing additional channels beyond basic cable.

Our complexes are 120 and 150 units.

Have you checked with some of the smaller, local only banks?

@Toben B., you are correct. Most lenders have a $500K minimum for apartment loans. However, some will go lower. Have you contacted any of the small, local banks in town like credit unions or savings and loans? Sometimes the small local banks are much more willing to help local people buying local properties in order to keep their money in the community.

Other than that, you may just have to raise the money thru private sources. $210K should be a slam dunk.

Lots of good advice here for you Ryan. Perhaps I can offer another perspective. How about each of you put up 33% of the money on the front end, but split the cash flow and equity with you getting approximately 40% and each of them getting 30%? I say approximately, because you could ask for a little more if you're the one doing all the work and/or found and negotiated the deal. You should be compensated for that work/effort.

Last thing I'll say is, "Ain't it great working with family"?!?!?!?!

Good luck to you Ryan. Sounds like it could be a really good deal for your klan.