All Forum Posts by: Naz Hossain

 I am build to rent developer and I love working with folks that want to do arbitrage. We both enjoy the profit sharing. If anyone is looking to do an arbitrage near downtown San Antonio currently, I just completed a set of 2 identical townhomes with full privacy backyard and 1 car enclosed garage. 

@Curt Smith is this true? If it is, it is actually a game changer. I'll be calling my city first thing 

I true wholesaler, who actually knows what they are doing, is worth their weight in gold. The amount of time and effort that goes into finding a "deal" which actually make sense is worth their assignment fee. At the end of the day, whats on the market has competition. Bring something of value without competition that makes sense, any investor will take it all day. 

Home inspectors point out EVERYTHING that they see/inspect. It's their job. It's your job to prioritize and fix issues that would make a property habitable for your tenants. Usually you want to go a few levels above habitable (I do at least). Some of these things are cosmetic and some should be reason for concern like unit 3 living room floors are slopped and sagging, electrical issues? (vague), plumbing leaks, sump pump etc. I always hone in on the MEP issues that are highlighted. Those are big ticket items. 

You could dive a little deeper by talking to the previous property manager and checking what those issues are. You could also take the inspection report back to the seller and request concessions or repair (up to code). 

Either way, take some time, inspection reports usually come with pictures, you have the upper hand in this market so no need to rush. You can reach out to a contractor in the area and ask them what the cost might be to fix some of the MEP issues. Chances are they will want to see it for themselves if the report is too vague. 

If the rents and ARV support the purchase, then don't be too afraid. You can try to get help from a local seasoned investor in your area as well.

I have not paid someone a monthly fee to be on standby. I usually have a crew that is constantly working on my projects and I do have a dedicated in house property manager who is "boots on the ground". If you build a good relationship with a contractor/PM, I am sure they will not mind helping you out in a bind/emergency. 

In the LTR world, you do not need someone for weekly inspections. In the STR world, your cleaner could cover that role for you unless its trades (MEP) related.

Basically, you just have to find someone you can trust and decide what type of payment structure works for you. I pay my property manager a monthly salary and she is usually available. If its an emergency, she can be present at moments notice. 

Hope this helps

Definitely easement would be your biggest concern. Even if you want to approach it the way Rachel mentioned (which is brilliant) the construction of billboard will require workers to gain access. You could pay the neighbors for a right of way through their property line and have it recorded with the city. 

The other thing you can do is call the neighbors and sell the lot to them for a fee. Make it into a wholesale deal. I know I would snag up a parcel to extend my backyard if it were feasible! 

Curious to see what others have to say on this as well

I have a Texas LLC holding and a moving to have a Wyoming LLC as primary holding that will be incorporated into the the OA. It would seem like me just having a holding company in Texas but almost a phantom holding company

The only thing that can possibly kill the deal is the size of the renovation and possible ARV. 1.2M is about 28-30K per unit. That is quite a bit. If the final valuation of the underwriter in line with your 10 cap, you should be good. Outside of that, if the numbers are really what they are, you have T-12s, 1040s, and rent rolls, you're quite solid.

My credit score recently dropped to about 680 and it was so much more difficult getting a loan. The best advise I can give you is to get your credit score up. It will open up so many more doors for you. You can use FHA (not the best) or DSCR loans to get your feet into multi family projects.

Pay off your personal debts and wait to pay off any business debt. Personal debts affect credit score and will affect your DTI when it comes to applying for loans.

@Account Closed I am in San Antonio and apply similar structure. Let me know if you'd want to discuss