All Forum Posts by: Taylor J.

@Matthew Baltzell I mentioned that area specifically because it is where I am from and most comfortable.  I know that with real estate that does not mean it is the best area to invest in though.  The Temple area specifically I believe will continue to grow quite a bit.  I think Austin is overvalued but will also continue to grow as well as anything north on I35 all the way to Dallas. 

Lets say I have 1 million between me and my equity partner for a down payment.  What kind of properties would we be talking about?  What kind of down payment are most commercial banks looking for? 20,25,30%?

Any guidance is appreciated!

I am also out of the country, so my responses will most likely not be very timely. I apologize in advance.

I think how many units, class, etc kind of depend on the area.  In Austin I may only be able to afford 12 units, whereas in temple I may be able to afford 80 units.  I just have no idea what apartment complexes sell for or what is available.  I would be willing to do a unit by unit rehab, but not a completely vacant overhaul.  I also have the ability to raise some capital for a property that may be out of my price range.  I just need an idea of what kind of prices the areas are looking at. 

I am looking to start investing in Apartment complexes. I have quite a bit of capital of my own available and also have an equity partner that is interested. I am looking for a realtor that could help identify some opportunities in the area. Any recommendations are appreciated. I am interested in properties anywhere between Austin and the Temple area. Thanks in advance!

I was told that they can only use 75% of the rental income which basically puts the appraisal at the same price.  Which doesn't make sense to me.  If they are using it for vacancy it seems crazy considering national average nor my area are anywhere near 25%.  

@Scott Anderson

If you get seller financing on the difference, wouldn't you in my case basically be paying 355k in mortgages on a 300k property? @Nick Rutkowski  Please excuse my ignorance if I am completely off on that.

I recently went under contract on a 4 flex for just under 300k.  The property rents for a total of $3550 for a total cash flow of around $1600.  

The issue is the appraisal.  Due to a lack of 4 plex sales in the area the appraiser had to go about 40 miles away to find comps that were not really comparable at all.  The end result is the property is now appraised for 55k less than what I am trying to buy the property for. The property is absolutely worth the contracted price.

We believe that a comp much closer was missed because for some reason it was listed as a triplex. This property is almost identical to the property I am buying and sold for 300k even..  Even if we get them to consider this property I fear there will still be a big difference.

I would prefer not putting any more cash in, as I am already putting down 25%. 

Any ideas on what I can do? Would a local bank that keeps their own notes be more understanding of the situation and take the cash flow into consideration? 

@John Murphy What would you say are things to look for in properties that might need to sell but aren't on the market?  Am I looking for distressed properties?  Or are you saying to shoot a wide net out of all the properties that might be in my price range and you never know who might need to sell?

@Kevin Dean Would I just go to a normal real estate broker I would buy a house from?  Or is there a specific commercial real estate broker I would be looking for?