All Forum Posts by: Will Gaston

All:

I have been investing in my market for 11 years and know the two zip codes that I only buy in extremely well.  I was approached 18 months ago by an agent that I trust about purchasing an 8 unit building in an A+++ location. He begged me to buy it as he insisted it was a great deal. But I just couldn't pull the trigger, mostly because of my ego.  

The seller wanted 449k for the property and had only owned it for 4 months after he just paid 325k. He spent ~20k on Cap X but never raised the rents, which were approximately ~5200/month. It "felt" wrong to buy it at that price. I told myself that retail buyers pay for property like that, not me. The property ended up selling about 12 months ago to the current owner for 403k.  

Well, the new owner has raised the rents to ~6000/month. 

The same agent that I trust has approached me again about buying it.  The newest owner wants 525k for the property because she has raised the rents to ~6000/month. She has done nothing to the property at all as far as improvements.  

BUT here's the thing. I know the property is still vastly under-rented.  I own the property next door so I know the location very well. The property will easily rent for at least $8,000 but will probably be closer to $9,000.  The property would be worth over 700k if I am able to sell it at the same Gross Rent Multiplier as I buy it for.

AND I can buy this property for no money down. I have a bank that absolutely loves this collateral. They will lend me a 75% first mortgage (20 year am/7 year balloon) and the current owner will carry back a 25% second mortgage (interest-only) with a 7 year balloon.

I've kicked myself on a daily basis for not buying this property the first time for 403k.  Am I letting my ego get in the way a second time?  As a RE investor, it's a very difficult feeling to pay 122k more than I could've just paid last year.  It also feels very 2006-ish to me.  I know it's only supposed to be about the numbers, but it's hard for me to stick to that maxim. 

What say you?

Offer them cash (maybe $200?) to move-out by your specified date.  I'd think that would be worth it for both sides.   

@Brandon Spence I wouldn't buy it with the expectation that you can rent it for $650 this school year. It's probably too late to buy it, fix it up, and rent it before school starts on 8/18. $650 is reasonable for a 2BR/1 Bath apartment though.

@Andrew R. Lucas Cool- I also have several in Olympia (Heyward, Texas, KY, Virginia, etc). Glad to have you on BP.

@Andrew R. Lucas what part of Columbia are your rentals located?

Thanks @Craig Bowen.  I actually currently have several notes with FCB, although I don't know Jamie. I'll send you a PM and we can talk soon. 

Seeking a Commercial Lender in South Carolina (preferably a local bank in the Midlands / Columbia / Lexington market) to finance a first mortgage on the following deal on a triplex in the downtown Columbia Area.  

The seller is willing to hold back a 15% second mortgage, interest-only at 4% with a five year balloon. Looking for a first mortgage with a five year balloon so that I can re-finance the first and second mortgages and pay the second off at the balloon. First mortgage LTV in 5 years on will be ~58% and combined LTV on first and second will be ~73%.

Est. Purchase: $160,000

Taxes: $2,809

Est. Insurance: $1,200

80% 1st MTG: $128,000

15% 2nd MTG: $24,500

5% Buyer Down Payment: $7,500

Payments:

Est. Rent: $2,000

1st MTG: -$962

2nd MTG: -$82

Ins/Tax: -$334

Net: $622

Debt Service Coverage: 1.45

Thanks for any suggestions.

@Jasmine Thomas I really like to buy in the 29201 or 29205 if you have anything in either zip code.

@Jo Amick thanks! just sent you a PM.

South Carolina Investors:

I currently own 44 rental units in Columbia, South Carolina near the University, Williams-Brice Stadium and Five Points. I'm looking to purchase more properties in those areas for my portfolio NOT listed on MLS. Will be pay happy to pay a commission if you're an agent or a finder's/wholesale fee if you're not.


Prefer Properties:


*In or near Five Points, Shandon, Olympia, Rosewood (Will also look at The Avenues/West Vista)

*At least 1000 Square Feet

*In 29205 or 29201 zip codes (Will also look at 29204, 29033, 29169)

*Reasonably motivated sellers

Send me a PM about your property (square feet, beds, bath, condition, etc.)

***NOT a Wholesaler. Only looking to buy for myself.***

Can buy with terms or cash and close very quickly, typically within 7-10 days. Thanks for looking.