All Forum Posts by: Todd Dexheimer

To me the overall feeling from people everywhere is that we are in a bubble. There has been bubble talk for over a year now on BP and all over the major news outlets. That is one reason I think we are not in a bubble. The other is that the market from peak to peak has been 18 years since the 1800s. I'm still being overly cautious and buying Soley on cash flow with conservative numbers and suggesting everyone else does the same. Whether it is 1 year or 7 years., the fact is the market will correct and that will be the best time to explode your wealth again

Look for markets with good job growth and also housing affordability. I like: 

Indianapolis, Oklahoma City, Tulsa, OK, Much of North and South Carolina, Savannah, Columbus, OH, Cincinnati, St Louis

@Matt K. said it right! I would schedule another walk through with a contractor and get a quote. Give that quote with the offer. At the very least write your own list of deferred maintenance with prices and present that with the offer. The water issue alone could be $5k+

Would you be both on the general partnership side? There is not much for detail in your post, so you could structure it a lot of ways. If you are both doing some of the day to day you could just be partners and split it 50/50 or 60/40 or however. Your attorney would set up a multi-member LLC with the member control agreement, etc. The other way is a full syndication, where you would want to get a securities attorney involved.

Good books: Gene Trowbridge - I's a whole new Business

There are several blog articles on BP about syndication. Just search that in the menu. 

Good post and very true! What markets did they mention? I think it is also important to understand what happens in market cycles to "good" markets. I think a lot of people look at a market like Austin, TX for instance and decide to invest there because the numbers have been good for so long. The real question is how much longer will that sustain and is there room for rent growth (not picking on Austin, just hot markets in general). I like markets that have affordable rents based on income, good cap rates, low supply and improving economies - that can be hard to find. 

Talk to your local banks - everyone of them. I called 100+ banks by me and found banks during the great recession willing to work with me. I was able to buy my houses at 80% of ARV or 100% of purchase plus renovation, which ended up being a zero down loan. These are commercial loans, not tied to your personal name

Your headline says wholesale/syndicate apartment complex property. Are you looking for a syndication contract? Wholesale contract or Purchase agreement? If you are looking for a syndication contract(s) then you need to contact a securities attorney for that. If you are looking for a purchase agreement, then you can contact a local real estate agent (many young agents would help you out for a small fee), you could contact an attorney or you could go online an pay one of the legal doc web pages for a contract.  

I would hold off for something good. If you search enough, you should be able to find something decent. If not, then I would keep what you have and wait for the market to correct. You could also look in other asset classes (retail, industrial, office, etc).

I would really dig into what is making it decline and is there a decent chance for it to pick back up. If you do invest, then be sure the cash flow can keep up with the decline. If you have an annual .5% decline then you need to project that in your numbers. If the investment still makes sense then look into it more. Some other things to consider. If you can cash flow, you need to think of the vacancies and the fact that they could be prolonged. What is the housing stock like in the city? If it is junk and yours is good, you could stay full, especially if your rent is at or below market. Also, you need to be prepared to sell for less than what you bought for or not be able to sell at all. 

Good luck in whatever you decide!

I agree with @Moises Mari get an attorney. It's not worth it at this point, since it is so close to the 23rd, but you could call the city and tell them what is going on. They then can send an inspector out to condemn the house. It will require you to do some work to the house once they are gone, but desperate times they are!