All Forum Posts by: Omar Ruiz

I just sent you a message. 

Such a website doesn't exist and would be extremely difficult to create due to every ones unique different needs. If you do find one, please share with everyone. 

You'll need to get comfortable making perfect decisions with imperfect information in order to be successful.

Talk to a broker in the market about what you plan on buying. 50 miles away is not that far and your materials will not fluctuate much if at all. Now, 1800 miles, 6 states away is different. 

Good luck 

Since both properties have enough units to be considered commercial real estate, you use the income approach to determine the value and get a cap rate. Any experienced investor would not pay more what the numbers show, but your friend may get lucky and find a "bigger fool" - there seems to be plenty of them nowadays especially in California. Whether it's realistic, only he will eventually know. As the trustee, I believe he does have a fiduciary responsibility to the trust, but the market will dictate what he can sell it for. He can always list it for what he believes the value is and let the market respond, and he can adjust accordingly.

If prior to making an offer, someone asked me for copies of leases and tax documents when I was selling my sixplex in California last year, I would have thought 2 things:

1. This person doesn't know what they're doing. 

2. This person is a rookie and is going to waste my time. 

Either way I'd disregard them and work with another buyer.

What you can reasonably expect is financial statements and a rent roll, that will be the basis for your offer. After you have it under contract (and no one else can snag it from you), then you can verify numbers with signed leases, receipts, contracts, etc. and renegotiate as needed. 

To Your Success! 

We have a multifamily club in Anaheim Orange County on meetup 

You can try finding a CPM (certified property manager ) on www.irem.organization.

Don't be surprised if some of them reply that the property is too small as they generally like bigger properties. If you find someone that works at least you've mitigated the risk of having incompetent property management. 

To Your Success.

If you have no experience with large apartments (50+ units ), getting financing is a challenge as they want experienced operators. You'll need a sponsor with experience, networth and contact a CPM that will help you operate the property.

You may be able to get seller financing if you deal direct with sellers. You can ask agents if they have any seller financed deals.

All commercial lenders take into account property income, but are going to look at the borrower also. FHA-HUD for commercial is difficult to qualify and requires reserve funds. I wouldn't suggest starting this way.

I started with small multifamily and doubled size of units with every subsequent property  (2 to 6 to 13 to 32 to 77).

To Your Success!

Yes, your wasting you and your agents time viewing properties before knowing if the numbers work - never waste your agents time. Do your numbers first. 

No, you don't offer what the sellers is asking. You offer what the numbers make sense to you based on actual current market situation; otherwise, your speculating on future values. That's fine if you want to speculate, just be aware of that and if your willing to accept the risks that come with it.

To Your Success!!

Sounds to me like your being more than fair. They just don't understand the value your bringing to the table, so you need to communicate that better. The fact that your cashflowing $1000/month on a 4plex in California, with only $100k down at a 12% c.o.c. return in a "good area" is rare. Your doing them a favor and they should stop hesitating and move on this fast, before someone else does and you lose on the opportunity.  Fast money gets the deal.

I suggest talking to other friends or contacts that understand the value your providing.

Best of luck!