All Forum Posts by: Michael Lee

Hello again Jean!  One book I just read was entitled something like "How to Buy and Sell apartment buildings and it good stories about buying and selling middle-sized apartment buildings (around 100 units) and Partnerships.The Partnership he liked then was called "Tenants in Common'  where you could still control the investment and how you could keep control of a property and have a part of it with 1% and have separate agreements with each partner's participation.  You might go to a Lawyer/Attorney that regularly working on Partnership and he could probably tell what is the best way to go.

I think that various books on Partnerships would help you make the right decision.  You might want to use this Forum to get advice from others that have dine this.  You could seek case studies that you could learn from.  It's basic goal on this type is raising money from others that we w  Showing them your evaluation that shows them their potential return and to help you plus a chance at a higher return on their money  I hope some of this helps you.  

Best wishes!

Hello again Antonios!  Sorry about this.  I wasn't finished yet but I accidentally pushed the "post reply" box.  You might be better off that you learn more about  partnership memberships where you stay in control and just offer them income without being into working on the property's day to day operations.  Then you could form a Partnership and purchase apartment complexes that make positive cash flow on day 1 and if you purchase 32 units you can budet for a Property Management Company and still make some cash flow each month. 

You should not believe what you may have heard about apartment complexes requiring any prior experience in real estate investors running apartment complexes.. That is a myth, you do not need prior experience. The more units, the better. Another option is to try and use an FHA loan with a lower down payment. That is one of the few ways I would approve of residential multifamily

Good luck to you!

Hello and welcome to this site.  Nothing that I say should be taken a stand against you personally but just should be taken as advice from my mind and nothing else. Who the hell am I anyway and why should you listen to what I am saying  anyway? Well, for one thing I'm 61 years old and I was born and raised in Dallas, Texas.  I graduated from college with honors in Business that emphasized real estate.  I have about 30 years of construction management experience and I had a license in real estate brokerage  in Texas for about 30 years too.  I've been a member  of biggerpockets for about 5 years and have studied full time learning alot there, reading books, because I had a few years to do that 7 days a week because of the medical problems I had.

That being said let me inform you that wholesaling is harder than it looks, it has much competition, and you have to learn how to tell lies or keep things to yourself so the Owner does not know what you are really doing.  If you insist on doing I would suggest that you do reverse wholesaling that deals with the buyers instead of sellers.  This way you do not have to hide anything to make money and there['s less competition. Or you could do lease options like John Jackson in Tarrant County teaches.

Hello again Matthew! somehow my letter was posted when I wasn't finished.  My next way is by looking at the Craigslist daily and do not just call the people that have For Sale ads but the ones trying to rent a unit and ask them if they are interested selling.  Some corner lot owners might allow you to put a sign in that might attract motivated sellers with some special language on it with your phone number that looks like a "For Sale" sign.

Check any local newspapers that may be available.  See who sends heir letters or the most common people that know of them.  Lawyer/Attorney offices that mat\inly work with divorcees or bankruptcies. You could look for empty homes by"driving for dollars" that might be owned by out of state people who would like to get rid of that responsibility.

You could contact county offices that make past due property tax properties and contact the existing owners that might be involved in a tax due auction sale and contact the current homeowners and see if they are interested in selling their homes and keep them current with property tax collection firm.

Good luck to you!

Hello and welcome to this part of the site Matthew!  I can't tell from your question is about selling what you have or how do you attract motivated sellers in general.  I will try to answer this question that works for either case unless I reveal the case that I am referring to both situations.  You must be talking about how to attract motivated sellers that want to sell.  One way, is to set bandit signs if they are legal.  Send Direct Marketing targeted towards the people in areas where most owners should have mostly a majority of the market value, an area that has 30 to 40 year old houses.

Either mail them in a special envelope or colorful postcard or knock on their entry door and ask them if they want to sell. If you have MLS or some other Social Media like Zillow or Realtor, Inc. that displays anything that has been For Sale for an extended period of time. Find those who are late on their property tax bill is past due but before foreclosure and make them an offer that includes what they owe which you will pay off. You might be told how to find them through the Tax Assessors Office or the government owned office that knows the people that deliverpast due billings delivered.people that deliver

Hello Jean!  If I had that kind of cash and you could attract Partners and buy apartment complexes in this economy, that's what I would do.  I would make my home wherever it'S hot.

Hello Mike!  That is a good question and there will probably be different answers because the ideal cure is pretty expensive.  Being in the construction business for about 30 years and having a real estate broker license in Texas for about 30 years gives me a unique answer probably regarding your issue.  It sounds like you are pretty sharp and do show some sensibility.  Unfortunately, I would say the owner is responsible for the expenses up front but can get reimbursed by charging more in the rent payments on the new leases. 

If the existing lease does not have the language in it that allows for that kind of extra expense (which is probably unusual) that makes a tenant partially or fully responsible with explanation to the new tenants responsiblility for that type of expense for air conditioning that is unusual unless common in that area and might be discovered during the research period on the subject property and uncovered then. 

Unless it was found as a typical expense and included in the lease development stage , unfortunately, the owner would probably have to incur that expense upfront and slowly be paid back when new leases were made through higher rent and was able to be incurred as new language in the new lease and understood by the new tenant about who is responsible (at least partially) for that or any other possible capital expense.

With regards to the problem stated about using the landlord's panel, you might gain some additional wattage is by possibly downsizing some of your breakers.  An Electrician that is experienced could talk to you about that possibility.  When we added a bedroom to our house my electrician was able to do that without the added expense of a new, enlarged, panel.

That kind of problem is just another reason to not purchasing a residential (1 to 4 units) multifamily unless that special low down payment is part of the reason you take advantage of that you might need to get started.  I hope part of this helps you.

Good luck to you!

Hello and welcome to this site Jose!  In this economy I think I would do a Fix and Flip or an an apartment complex that would be a residential Fix and Flip or do focus your learning is focused on apartment comdlexend purchase an apartment complex (5 plus units).  Know what you may have heard about you need some residential project is a mth.  you can start on a "small" apartment complex then increase your quantities.  when you get to about 32 units you should be able to hire a Property Management Company paid out of that apartment income and have some positive cash flow.

You can get hot areas to do either style by talking to brokers, Governmental agencies, popular appraisers, and 

Hello Scott!  That is a good question and nothing that I say is meant to be taken as a personal insult.  I have not ever looked at the possibility to purchase commercial property but I'll do my best to give you an answer based on what I've learned about that type of development.  I have been involved in the past about sales managing and maintaining commercial properties as well as construction projects into retail, banking, movie theaters, and a hotel.

For about a year I have been watching and listening to a gentleman that has about 25 years in the experiencing of successful real estate buying and selling apartment complexes and currently owns almost 5,000 apartment units.  One of the reasons he has bought so many apartment complexes and have always been profitable for him and he says that apartment complexes have always been profitable for him and is now saying to stay away or be cuatious from most other commercial operation.

He is currently very concerned about other commercial developments depending on its demand for that type and how long a vacancies lasts and if that location is dependent on a special industry or the demand for it or that type.  That being said, I would be concerned about the occupancy and if the leases have a variable ending date and its age, and if you think you could add any value to it by raising the rents or make any interior or exterior improvements. 

Are there any specials on it that are still around and if it was made to get it fully occupied?  I would see if any of those specialties are still going on that or if you might be obliged for them?  You might need permission to do that but I would also recommend that you talk to each tenant and see if they have made any choice to stay there or not.  I do not know anything about your or its location but you might look into an apartment complex as a possible investment if any existing complex is available for purchase. 

Is the cap rate raising or lowering? The ideal cap rate is around 8. I would also recommend a positive cash flow on day 1 of your ownership and do all expenses except the debt should be around 40% of the gross income. Do any expenses look unusual? Does the IRR or the ROI better than any of your other returns? You might check out any other development that is nearby dependent on any of your future tenants or vise versa.

Good luck to you!

Hello Robert!  A combination of phone calls, face-to-face meetings, and your own computer is what you'll be subject to at finding the information.  Government run economic agencies, The Chamber of Commerce, heavily experienced Realtors in that area, current Housing Associations, heavily involved Banks involved in the local financing may all be successful at helping you to find the right information you need that will help you decide on to what to do.  

They could help you decide what you should do with that land or help you with any demand that decides what is needed in that area.  Things like population growth, job growth, housing needs, business needs, and any others needs that might show up plus any negatives of any industry or other businesses that may may hire many people in the local community or if anything new that has been planned for the future that has not broken ground yet.

Good luck to you!