All Forum Posts by: Sharon Tzib

Awesome advice, Robert!

@Michael Power where are you finding Theresa's book for free?

Kevin, are you asking if you bought a multi family with a loan that had a 5 year balloon, what would your exit strategy options be? Please clarify - your question is a bit confusing.

Ok, so basically you're selling it for FMV less your commission, correct? I think most investors are going to want more of a discount than that to take it off the seller's hands quickly, as-is, for all cash so she can be on her way to her new job, imho.

It definitely cash flows, especially if someone pays all cash (and even if they don't, but then again I assume your target buyer isn't getting a loan, or the seller may as well put it on the MLS and get the highest and best bid). Your target buyer is definitely a buy and hold landlord since there's no value add, which will limit your pool.

Personally, I'd try to get her down another $10K if she really wants to sell quick.

Thanks for responding to my questions, Brian. I'm so glad to hear C Classes aren't trading for $45K per in Houston (I almost had heart failure and was gonna start looking for a new area lol!). I had been told about $20-25 avg, so $10K and up is wonderful - I'll probably stick to C+'s cause I'm w/ you on area. My bad for doing the math with an "all in" number.

Now that I know what you paid, the impounds don't sound low at all. I was using a much, much higher PP when I calculated that. Makes perfect sense now. Again, really appreciate you breaking this down - exciting stuff for you!

Hector, what are the comps? Can't really answer your question until we know that. Thanks!

Wow, Brian, congrats! $45K/door for a Class C. Is that the range you're seeing in Houston now for this asset class?

Can I ask some ?'s re your expenses:

1. I imagine if this wasn't a Reg 506D your entity formation and legal fees would have been less?

2. Why did you have to pay legal fees for the lender?

3. Was the lender's impound account for interest? It seems too low for taxes in TX.

4. How much would you set aside for reserves, and what portion of that would come from security deposits?

5. How long from start to finish did this deal take you?

Thanks for taking the time to share.

It's a pass for me too, Shari! No way I'd take on that tax liability, and you don't have separately metered units on top of it. Add that to the not so great neighborhood that could further decline, and it just doesn't look appealing at all.

Also, @Joseph Weisenbloom 's numbers only accounted for the special assessment tax, not the regular tax, so regardless of the loan term, you are cash flow negative. And what happens if one unit goes vacant and you don't find a tenant right away?

Banking on appreciation in a C area is more risky than taking on debt and looking somewhere else. If you do buy this, make sure you have ample reserves - you're gonna need them.

Just my observations. Good luck whatever you decide.

Hi Charles! Good for you for starting to research real estate investing so early. Lots of good info here on BP. Be seeing you in Houston soon! Good luck!

I've heard previously in this forum that Stewart Title is investor friendly.

http://www.stewart.com/houston