All Forum Posts by: Charley C.

I'll let James answer your question.

Mark, be sure you account for every dime the PM sends you and pay taxes on it, with or with out a 1099. I can't count all the 1099s I get from different places, I don't include the 1099s on my taxes but I do include every dime (and K1s) that I receive on my taxes.

I think most of us here are very aggressive about how we right stuff off. If I am wrong about what I wrote off and then owe penalties for it, its just a civil issue, not criminal

Now, if I fail to claim deposits (income), then its a criminal issue with a good possibility of jail time. Sounds like your PM is heading down that path. AND will look for escape goats

Another thing you need to watch for, is if the PM is 1099ing you for more than you ever got.. or if the PM sends 1098s about you to the IRS but then never sends you a 1099 (but lies about it) its a tangled mess. If you are seeing sloppy business practices, find a and exit with that affiliate. I get this kind of stuff (and more) from being a speculative builder, I can't wait to retire  

Quote from @Elizabeth Goff:

I just found out the property manager of a duplex I own in Texas is only running applications concurrently.... so if the first one fails/drops out, then they start on the next one... which obviously can extend the time to get someone placed.  This is not how my other property managers (or I) process applications, albeit in different states.  I run at least two that look good on paper and choose the best.  She is telling me that that is against the law and/or code of ethics to charge app fee and process more than one at a time in Texas as you are promising/selling the same unit to multiple people.  Doesn't sound right to me, but wanted to get feedback from those of you who know the rules in Texas!  Thanks in advance.

Did you sign a lease? did you sign anything with any of those applicants? Look at how you advertised and see if you have to comply with  that
concurrently thing your manager is saying. True you don't double sell or rent properties but you never signed a lease or a sales contract so WTH? if anything, your manager may be breaking housing laws by not considering all the applications before you have signed on the dotted line.  

I run every app I get. I do tell people the qualifications and make sure they know before I spend their money. If there are more apps, I tell them "there could be more applications being considered". Takes time to have to listen to people pressure me.. its a little more "work" . Perhaps its the "more-work" and confrontations your manager has an issue with, this manager sales their own mind thats its a legal issue to make their self-feel high and mighty. I think (just an opinion) you got a selfish and cognitively challenged property manager. I am no lawyer but have been suckered in to taking many many boring hours of fair housing CE and never read such an odd assumption. Its not uncommon to hear property managers say those sort of silly things and a lot of time, they here bad advice in a CE class and think its the gospel. Your Manager needs to run every application and be forthcoming about the circumstances with the applicants. If you really want to be legal, I would not depend on that person to know what that is.  

might want to start by renting something cheap to learn the area(s) while living here. Look where the prices on sales are lack-luster but the rents are higher.. use zillow 

even if the rents seem high, dont be fooled in to over committing in a slow moving rural or blighted areas, look for absorptions and rental activity, look at the volume of history, be sure its there

far SOUTH East Texas has a lot of niches fromn the refineries and the jobs from them. Lots of opportunities but you would not catch me living inland in that area. And you will need to live there to have 8 properties there. if you like saltwater type sports, then you can find some fun living there but in land is not pretty. find a home on the coast so you can live there and own properties just north of you.  

oh and BTW that whole area has got the federal and state funding and is getting rural fiber, HUGE shot in the arm

keep your eyes on your assets. never try absentee "landlording" Even if you use a management company and they tell you "we got this" you still stay on top of it. Put your eyes in person on anything that is tangible 

I am just now finding these answers to my post. 

Freddie/fannie: rates are now way too high, the deal has no appeal with a mortgage of over 5%. I need the perm to be 3.75% or lower or there is not enough net cashflow

FHA? yea I think the ticket will be FHA but different FHA type deal. I am not interested in building a small project and living in it, I don't think I would spec build any less than 20,000 sf at a time, my sweet spot is 40,000 sf at a time or the project is too small to bring in the betters subs. If the project is too- too small, I would be force to recruit that local rural non-performing talent, no thank you.

I think the ticket is going to be something similar to The Low-Income Housing Tax Credit (LIHTC) program . I got a rural spot that will get about $16-1700 for a small 3 bedroom from the working poor. Its not real lucrative but its conservative an does not have the same volatility and risk as the larger city's wide market swings.  I was looking for some pointes on how that program works and how I can use it to lower the mortgage payment?

residential type mortgage brokers would not have a clue.. I know I was one at one time. its a niche type lender I am looking for. I was just trying to avoid going to the a title company and seeing who are the lenders on the affordable housing projects I know of. 

Even going to commercial only type lenders, it can daunting to find people specifically in to that type of lending. I need interest rates in to the (no less than  30-40 yr fixed) 3% range to make rural or affordable housing work.. otherwise just retire, the larger multifamily spec building boom is over

Hello BP family

With the interest rates on the rise, I really need to source some FHA affordable housing type loans. Can somebody point me to the correct sources? I spec build apartment complexes and typically keep them. 5 mill minimum loan amounts, plenty of collateral and cash flow. I am somewhat familiar on how to comply with FHA including; managing, reporting, building-new and aging dates of construction. I just lost track of lenders that do those types of loans. These are not voucher type FHA tenants, just income bracket. This is in Texas and some of my locations are kind of rural. Thanks

Hello, I am an conventional apartment builder/developer but the new interest rate models have put a damper on new projects. I know FHA has low interest rate permanent financing for affordable housing. Not for vouchers but where the occupants have to be under a certain income bracket. I should be able to comply with that but really I just don't know lenders that are into that kind of thing.

I got several questions. The first one, I would rather not use the FHA of any sort to do the construction, is that possible? or do I have to fit the FHA mold during construction?

What are the fixed rates for affordable housing (over 5 mill) ? (could borrow more if needed)

What are the income brackets for Montgomery or may be even Walker county for example?

Any pointers are greatly appreciated 

Hi Matt, I am in the Houston area too (north mostly) my plate is full but thought I would chime in (I am not your guy). I tried to do the same thing but could not find developed lots to do it  

if you got good bead on some developed lots where you don't have to have hand gun permit to survive, then you got good deal. ignore the next paragraph in that event 

When renting is your business model, you can pioneer a lot more. Your final tenant/occupants a lot braver than "home owners". Look east of down town all the way to ship channel, its been a while since I been over there but I can share how I approached it. Do not rehab that junk, tear it down. I was there about 20 years ago. I noticed that the newbies always over estimated the cost of demolishing while under estimating the cost of rehabbing. 

Good luck

I think a 4-plex loan is still conventional, seems like you got property with room to build more, just build one 4-plex. Find a local bank that also does conventional loans. They will have a list of builders approved to build for you (and them). The first loan woud be just for the construction, then later, a different loan will be closed after your done and you moved in (a 30 year conventional loan, not the bank's BS 5 year arm loan) .   if your job income is enough to qualify for all 4 units

if the land is platted in to different lots, then it gets even easier to grow

a few more steps to take than I am telling you but that is 90% of it.. first accept you are not going to be the builder at first (if you never been a builder before) Good luck