All Forum Posts by: Omar Ruiz

Yes, foreign money is prevalent in my local market and other markets I invest in. You have to understand that some foreign investors are not focused on R.O.I.; therefore, cashflow is not important to them.   They're worried about their government getting to their money, so they just need a place to park money, whether it's making a return or not - capital preservation. 

Yes, everyone is capitalizing on the demand for Apartments. 

My advice is don't take it personally. A low ball cash offer is not necessarily competitive against a retail buyer that has loan qualification letter and experience, and especially a reputation of closing deals. It took me a year of creating relationships and making offers to buy my 77 unit Apartment I just recently closed on. Be persistent. 

To Your Success. 

There is no average as coverage can vary depending on many factors such as the specific market, special coverage required by lenders, square footage, replacement value, and the deductible amount. It doesn't go simply by unit size. I suggest you talk to your insurance agent when beginning the analysis process on your next offer.

Look for markets that cash flow and fit your investor identity. 

You work with what can be made available to you before going under contract. The duediligence period is when you have to be smart and a reasonable person to do business with. Don't be a rookie and ask for every thing before your under contract. I suggest you read "The abc of real estate investing " by Ken McKelroy. The question you're asking indicates you're trying to eliminate all risks before making an offer - it doesn't work that way and you need to beef up your knowledge base.

To Your Success!

Yes, absolutely ask for a price reduction or what I would do is request a repair credit for the roof to be put in a seprate escrow account, so that you get the cash to affect the repair and the lender doesn't reduce the amount of the loan. If you really reallly realllly want it, I guess you could offer to pay half, but it sounds like your starting to get emotional about a deal and that can be bad. I don't know any numbers so maybe it still works. As far as breaking the contract, it depends if you have a refundable security deposit.

Good luck

Whoever wrote the contract made it favorable to seller as he now has an appraisal value he can shop around. The cost to get your money back would be wasted based on the contract language you describe. Consider getting better agent or representation in future. 

Larger properties of 50 to 80 units will have a management range of 5-8%. Once you exceed 100+ units that range is from 4-5%.  10% is a reasonable range for single family homes and smaller plexes, but excessive for anything of 50 units or more. 

On my 77 unit I'm paying 5% for property managers with a CPM designation.

To Your Success!

You're already getting seller financing for less than 20% down! How much more creative do you want to get?