All Forum Posts by: Cliff Zarbock

Wondering if these are the ones on Shawnee St? Very rough area... get ready to chase those rents! I wouldn't spend too much renovating them because that area will not be appreciating nor will the rents be increasing. Plus it looks like the tenants live all bills paid. Yikes! Be sure to look at the previous utility statements to plug into your pro-forma. I wouldn't pay more than 125K for them. Mainly do to the area.

It's going to depend on what street...? Most of the area is D class but the closer you get to the bay the better of an investment it becomes. Corpus is currently prepping for major growth due to the Port expansions, deeping and widening of the ship channel, the completion of the nations largest cable suspension bridge, etc... Google the Port of Corpus and you'll see what I'm talking about.

There use to be a Portfolio Tracker. What happened to it??

Hey Joshus,

I am investing here in Corpus. Focusing right now on buying and holding multi families in low income areas but also do some wholesaling as well. 

What's your niche?

After a meeting with my accountant and attorney I have finally set up my investment entities. Here's what I did...(This is not legal advice nor is it tax advice. Please consult your professionals to best determine what's right for your situation.)

I created Zarbock Management LLC. I then used that entity and my personal name to form Zarbock Holdings LP. Zarbock Management LLC is the "general partner" with 1% ownership and my personal name is the "limited partner" holding 99%.

I then use the Zarbock Holdings LP to form 1 LLC for every property I acquire. (I am buying multi-family/commercial property)

I was advised this would provide my layers of protection and many tax benefits. However it's been a couple of weeks and I can't really remember all of them...lol.

Just thought I'd share.

No, I can refi at anytime. 

@Brian Gibbons

@Jeff Tang

Even though I'm a licensed agent, I let that realtor represent everyone involved on the buyer side. So he's making a decent commission. Ya see, the seller had already signed a listing agreement with her realtor, who told "my realtor" about them about to hit the MLS. "My Realtor" called me to give me the jump on them.

@Federico GutierrezForgot to include that the taxes and insurances are my responsibility.

@Jeff TangI was lead to her by another realtor here in the city that knows my investment criteria. I got the jump on them prior to them being listed on the MLS.

@Federico GutierrezThe Payment does include principle. Not very much however since the bulk of the payments in the beginning of any mortgage is primarily interest. In the 3yrs I will have paid the balance down by only $4,500. Leaving me with a payoff of about $110,500. 

So if you do the math. $689 X 36 payments= $24,804 paid to the seller over the 3 yrs. Which only reduces my payoff by $4,500. So it essentially puts an additional 20K in the sellers pocket. Making the 115K sales price really look like $135K to the seller at the end of the day. This was also explained to the seller which helped her agree to this structure.

@Account Closed So I amended my current contract with the seller for the 8 unit apt complex. Changing the sales price to 115K and the financing terms to owner carry. And then wrote up another contract for the 3 duplexes with my father-in-law as the buyer. It was written up as a cash deal. We will be closing them on the same day. Let me say that this was all explained in detail with the seller and full disclosure was preformed. Since the numbers ultimately didn't change for the seller she had no issues with it.

In regards to the "30yr am", it is short for 30yr amortization schedule. Which means that the monthly payments I pay to her will be calculated on a 30 yr loan. Making them much lower. I believe my monthly payment is only $689.00.

The "3 yr balloon" means that in 36 months I will need to pay her the full remaining loan balance. Which will be like $110K. If I do not, she can take the property back and I lose everything. As mentioned above in my reply to Sean S., I plan as of now is to get it refinanced before that deadline. Or I can sell it for 250Kish and pay her the 110K I owe her and keep the profit. 3 years gives me plenty of time to claim the income on tax returns to show the bank that it is a profitable property. That along with my personal financials I won't have any issues with the refinance. Worst case I just pay her off with my own cash and then take out a line of credit on it and use it to buy some more property.

I hope this answered your questions...? If not let me know where to clarify.