All Forum Posts by: Michael Wentzel

@Ned Carey Thank you for the reply. My partner has worked with me on many single-family homes, but I know he has lots of experience purchasing apartment complexes. So he is happy with the numbers and location, but his concern was timing to get an inspection, environmental report and an appraisal quick enough to get the loan sorted out. The one who has it under-contract is doing the inspection and should have the report early next week. Then we have 45 days from then to close. The same guy who has it under contract was confident that we could adjust the closing back a little bit if needed.

So we'll keep taking steps forward and see if the deal falls apart along the way or if it all comes together in the end.

Mike

@Wayne Brooks That is helpful to know. I hadn't thought about that. That means we'll need more cash.

Mike

For Single-family properties, the investor puts the house under contract at a certain number... let's say $50,000. The contract has language in it that says it can be assigned (given) to another buyer. Normally the investor then adds an assignment fee on top, maybe $10,000 in this case and tries to find another buyer. So he or she shares with other investors that they can purchase the property for $60,000. If he finds a buyer at $60,000, he "assigns" them the contract. At closing the final buyer will bring $60,000 (cash or mortgage) and the original seller will walk away with $50,000 and the investor in between will walk away with around $10,000 as an assignment fee.

This is quite common with single-family properties. Many wholesalers do this. I just haven't heard about it being done for an apartment complex.

Mike

Like so many others, I have been looking for small multi-families over the last year. I have browsed through hundreds of properties and run the numbers on dozens. They were either too expensive or located in a challenging neighborhood.

Then last week I received an email from an investor selling an apartment complex. He is in Texas. The property is in Ohio. I ran my numbers and dug a little deeper into the deal. Then I talked to my partner (who has way more experience than me) and he thought it was interesting.

As the process has moved along over the last week (emails and phone calls) it has become clear that the seller (in Texas) has the property (in Ohio) under contract and that he would like to assign the contract to us. I have done this numerous times with single-family properties, but is it common in larger multi-family properties? This property has over 100 units. My partner in the past has only purchased apartments through brokers.

Mike

@Robert Herrera

That is the first time I have heard of that problem. What is the problem exactly? Your house is sinking?

Mike

@Chris Walsh

It sounds like an awesome project. What neighborhood is it in?

Mike

@John Trujillo

We have 19 rentals in Pueblo, Colorado. We use an insurance broker out of Wisconsin. We are extremely happy with them. Send me a private message if you would like their contact.

Mike

@Erin Spradlin

We own 19 rentals in Pueblo, Colorado and have a couple Realtors we can recommend. Send me a private message if you would like the contact information.

Mike 

@Rachael Britton

We also like to buy in Pueblo. Let us know what you have for sale.

@Jason Eberhardt

Hey Jason. I have been busy as well and haven't been on BP for a while. I would be interested to know if you've picked up a couple more properties to flip. I have great subcontractors in the Pueblo market if you need recommendations. Finding that elusive GC is still hard. I usually use my handyman to do all the small stuff if regional doesn't require a permit to be pulled.

Mike