All Forum Posts by: Charley C.

you are right, I stand corrected, if you have the tax ID then you would not have to withhold here is a link on the ins and outs of 1099's 

https://www.irs.gov/taxtopics/...

that form is for people with no tax ID, requires YOU send the IRS a flat 24% of the total on the 1099. Sure you got the right form? 

@Todd Dexheimer, I am not your typical apartment broker. Not looking for a shot at listing anything. I have like minded  people that need to invest and get good return, that keeps me very busy. Let me digress to be super clear on who I am and what I been doing. I build apartments, rent them out, either keep them or sell them to my investors/partners. However, building them is getting way too expensive, looks better to just buy them now already ready to go. Instead of waiting to finish construction, I am making money on day 1, I like that part too.

I thank all of you for the information. I tried Costar before, was not bad but i felt like there had to be a lot more out there last time I used it. Yardi looks real interesting, not sure what RIES is

@Cody L. I appreciate that. I can move really fast since we are not financing the deal. what you say makes me think I should focus in on the smaller niche markets that have not been so darn over played

@Rick Martin think you got a good Idea. would not be hard to just get the address where property taxes are paid. 

And @Todd Dexheimer Once the brokers know I have had a license for the last 30 years, they would not believe me anyway, waste of time, tried that many times, its never worked.. That is one of the reasons I like building from scratch. BUT today I went to the lumber yard and bought four little 9 foots studs to finish a building prior to sheet rock and the price was $52 for 4 sticks! Needless to say, I am not going to pay 4-5 times the price to build apartments unless I can get 4 -5 times the rent, and of course I can't. Might be 2 or more likely 4 years before I start another project

I say I am one of the principles but I am also just one of the worker bees and not the primary. I am walking point and can solely sign with enough power to do the deal but its not a big ownership percentage if its an existing property. 

However, say its 2% of 10,000,000.  $200,000 to me is a big chunk of income for me. Usually I see there is 4%, the listing broker can just kick it all to 6% and everybody wins. My investor would have no problem with that if its a real deal but getting non listing brokers to believe that? impossible, I don't even want to try. 

I am trying to find the best sources to broker some apartment complexes over 150 units. (I am a broker) I am not looking for people to represent me. However, I am also one of the principles. Love to here some recommendations for good brokers to team up with or what ever means needed to find some good deals out there. I like to keep my eyes on my assets so Houston (first choice) then from there I would look in Waco, College Station, and places like that. I like niche markets with better returns but not ruling out urban markets. I just don't want something too far away. PM me, post here, look forward to hearing from you guys.

When I did mortgages, The amount of income was avaresge over 2 years even if it has not been two years (particularly if one just graduated) 

so even if  you only worked 1 day and made 10,000 then that would be averaged over 2 years . 10,000/24 months $ 416.66 of income per month. That was a Fanny requirement but the actual loan buyer/servicer always added more overlaying caveats 

the right direction to be pointed in would be would be a lender that is not a bank. Get you a scappy successful to loan broker/banker type. Brokers with many “investors” are the best direction to be pointed

Sounds like your biggest hold up is how your Income is counted. Most Mortgage loans either come from Fanny/Freddie or the FHA. The underwriters must follow those guide lines plus what ever overlaying guide lines their own company have. Commission sales have to have history required by every Agency I can think of: Fanny, Freddie and the FHA. So I think you are screwed there

With out me getting too deep in tne weeds, after one year some your commissions  are counted and after 2 years all your commissions are counted as income 

Good luck 

Thanks @Guy Gimenez and thanks @Dave Poeppelmeier I was in the process of expanding and renewing the farmers policy to add the buildings, I will ask about the student housing scenario. To answer your question about why? Really only the college market in this little broke east Texas town can generate enough rent to pay the mortgage. If I built 4 bedrooms and tried to rent them conventionally, I doubt I could rent even one of them at 70% the same price.

Next project I build will be closer to Houston

I am leasing some 4 bedrooms one room at a time to students. I am pretty new at the one room at a time thing. Many times, these tenants don't know each other until they are moved in. That said, I got to set some rules to keep the harmony. These units are all furnished, I don't want them removing my furniture etc. Or I don't want some on the 3rd floor doing a zumba (tap dancing) after certain hours. Another scenario some one might leave dirty dishes in the sink. Or trash cans getting stinky. And of course the partying. So-so many things. Surely there has got to be an addendum that has evolved to cover the many scenarios I know I will be facing. I am using a really good TAA ( Texas Apartment Association) lease and it has some stuff for that but not nearly enough in my opinion. I'll take all the help I can get. Any advice? 

He is right, they ask for 25% down. That way if the deal runs over budget and you need a little more they have room to help you a second lien up to 85%LTV (but those 2nd liens are not cheap money loans and must be paid off in a few years)

Look for a very very small bank or credit union in your immediate area. Stay clear of big national brand banks unless its a conventional deal.  Good luck