All Forum Posts by: Omar Ruiz

Do what I did on my apartments. Call ever commercial lender you can find and get  the info direct from the source. Once you build a working relationship with a couple of brokers, you'll talk to them on future opportunities. If you don't have it under contract, the brokers may just give you some general info that will hopefully allow you to do a good analysis. 

Good luck 

You'll get funding if you negotiate a good price. like the gentleman before said, get the financials. The other thing I would add is to get a rent roll if you can. After you determine what price makes sense based on the financials, then you can dig into the condition of the property and if you find any issues renegotiate. 

@Ashley Wolfe, I had no idea lifestyles operated like that. That's totally unnecessary. If your looking to invest passively, there's plenty of people like myself syndicating multifamily deals, that are not going to charge an upfront fee simply to get access to deals. I can send you info on a current deal to get an idea of what the process looks like, and what types of deal are available. 

Take care

I'm not a fan of efficiencies, but I do own a few here in California and they do seem to stay rented. I agree with most people here, that it always depends on the price. I wouldn't target a mix of all efficiencies, but if a deal fell on my lap and the numbers compensated for the bad unit mix, I think it's worth considering.

While considering a property in Texas with some big sized efficiencies, the manager had a good idea on how to utilize the efficiences to generate extra cash. The property was close to a regional medical center and nurses tend to get flown in to provide extra help and she also managed her own mobile homes through airbnb. She wanted to furnish and advertise the efficiencies on airbnb to visiting nurses and I thought it was pretty brilliant. Maybe something to consider if something similar might work on this particular deal.

To your success!

f. You need to get at minimum the utility receipts. 

i. You absolutely need lease copies or get estoppels and be present when their filled out to make sure there's no tenant coercion. This is a must and suspicious that he doesn't have it now.

j. Lender will require survey and the seller cannot provide for couple thousand bucks.

m. Those may not exist. If lender requires them than you, seller or both will need to provide. 

I'd be careful with this seller and you can always renegotiate as your offer was based on varification of the numbers and expecting this information to confirm your price.

Good luck  

Learn how to calculate cash on cash return first. Just looking at cash flow per unit is completely leaving out your rate of return. What good is it if you cash flow $100/unit, but put 50% down and your ROI is less than rate of inflation.

The variable lease will help you control cost, but you will have added administration to review the individual bills and charge tenants accordingly. Depending on the amount of units, it could take a significant amount of time. If you're able to phase out paying the utilities at turnover, gradually over time that will be best, but I think it depends on what your competition is doing. I remember it was common in Texas to see all bills paid and now I've seen some places even charge a "utility allowance" for water due to rate increases. I suggest researching what the competition is doing; if they're not paying the tenants bill, than your giving tenants a charitable gift. If the competition does pay utilities, than you have to adjust to market conditions. 

If the health dept gives him clearance and he's on the lease, I would struggle with that. If he's not on the lease, I wouldn't let him in as he may steal stuff and you can claim since he's not on the lease he doesn't have any rights to access.

I understand. Do what feel right to you. Good luck and take care.