All Forum Posts by: Mario Ortiz

Originally posted by @Nick B.:

Originally posted by @Mario Ortiz:

Originally posted by @Nick B.:

How were you able to buy it for $20K/door at the end of 2015? Was it in a very bad shape? 

 I got it for  $20k a door. Closed on it on  September 14, 2015. I negotiated with the seller for about  a year. They were facing bankruptcy and a slew of other problems. The property was physically in decent shape but the management was horrible. 

 I am looking for a seller like that. How did you find yours? 

 it took a long time.  When I sold my 90 unit, I went looking for a deal but was out bid by this seller. When they started losing money two years later, I was able to develop a relationship with them since I knew the property from before. It took another year before I could purchase it due to other issues that we had, but finally closed on it in late September 2015. I think it was persistence that got me this deal. I just would not go away.

Originally posted by @Erin Elam:

hello, great story! can someone please explain how you 'add value to financials'?

 I added value by reducing expenses and increasing revenue. I did it by bringing rents to market value, reducing delinquency by improving tenant performance, developing and implementing a water conservation program, installing temperature limiting thermostats, developing a a/c condenser maintenance program, installing solar screens on all windows to reduce heat input into units, renegotiated service contracts to reduce cost, and on and on.....  Hope that clears it up. 

Originally posted by @Nick B.:

How were you able to buy it for $20K/door at the end of 2015? Was it in a very bad shape? 

 I got it for  $20k a door. Closed on it on  September 14, 2015. I negotiated with the seller for about  a year. They were facing bankruptcy and a slew of other problems. The property was physically in decent shape but the management was horrible. 

Originally posted by @Tiana O.:

How to you eat the 25% down to get the first 90 unit? Did you 1031 your single families intro the 90 unit?

 Long story, but basically, I sold my  17 unit, I took a hit  on my  401k and cashed it in, and I had an insurance claim on one of my rental houses in Galveston when it was flooded during Ike.  In  2011, I bought the  90 unit at  $14k a door, so about  $1.3MM, which was about $400k down.

Prices are very inflated right now. I'm having the same problem, but just be persistent 

Originally posted by @Nick B.:

Mario,

You've done a great job!

Are you a sole owner or take investors? Who is managing your Fort Worth deal?

Thanks

Nick

 sole owner. I self manage. I found a great manager.

Originally posted by @NA Byrd:

How did you finance your first multi-unit purchase?

 my first MF was a 17 unit in LA Marque, TX.  It was listed as owner finance. When we got into it, the bank preferred to go directly with me, instead of having the owner finance thing going. That allowed me to have a relationship with a local bank that later financed my bigger deals.

Hey there everyone. I wanted to share my story because it seems that this business, if done consistently, can be very lucrative. It has some room for error and you don’t need to be a genius to do it (as I have proved). Although I started in 2003 investing in houses, my story really begins in 2011, when I bought a 90 unit apartment complex, added value by improving the financials, then sold it 18 months later for $1MM profit. I then bought a 180 unit apartment complex in Fort Worth 26 months ago, and am currently under contract to sell for a $7MM profit!!! The formula is easy. Find something that you can add value to, carefully plan your approach, then execute. Hope this helps someone to get some motivation to get into this great business.

James, I would not say it’s for idiots, since you can get a modest increase in net worth over the years. It’s better than most people do. However, if you want to significantly increase your income and net worth, multi family seems to be a much easier way to go. I started with homes. I had 10 and that became overwhelming, especially since I had a full time job as a project manager for an oil company. Once I bought my first multi family (16 unit) I saw the multiplication of effort start to happen. Although I was still the maintenance man, it was not necessary for me to travel all over Houston to do it. Two years later, I traded up to a 90 unit, and that. Hanged my life. I had employees and I no longer was having to do as much. I don’t know how much effort it would have taken to get 90 houses, but I’m guessing it would have been a lot harder. My advice, for what it’s worth; but a few houses to get your feet wet, then switch to MF.

Hey Eric, for rents, I go to Craigslist or to the Greensheet and look at going rents in my area. Sometimes the MLS can also show you rentals. another way, is to find another house for rent (Zillow has those) to get a quick comp.

For taxes, if your purchase price is less than the current appraisal, you can appeal your taxes and the county will usually lower it to purchase price is you take your HUD 1 form to them