Yeah, I'm still here.
I've taken somewhat of a breather from REI after selling House #2. I still have House #1 on the market, and am contemplating doing something to get it sold soon. It has had a lot of interest, but no formal offers yet, so I'm thinking of lowering the price a bit, throwing in some incentives, etc. The thing I hate is that we've gotten a lot of rain down here the last several months, and the grass (and weeds) have been growing at a pace that makes me have to mow every weekend. Couple that with our area now seeing 90+ degree temps and stiflinf humidity, and I hate going over there to mow now. But, I guess I'm losing a little weight. :-P
I've also been drudging along on a possible multi-family acquisition out-of-state - well, TWO actually. On the first one, I'm waiting for the agent to mail me the paperwork. I talked to her late last week, and she said instead of faxing or emailing them, she would send them by snail-mail. Surprise, surprise - still nothing.
The second multi-family one is movig along - slowly, but at least the agent seems to be on top of things. A while back, she mentioned her assistant had done PM before on a multi-family property and would be willing to do this one for me. I dug around, and finally found a bona-fide PM agreement the agents in Texas use, filled it out, and emailed it to her. I told her that it may have some clauses that are different, so her assistant should read over it carefully and get back to me if she has any issues/questions. I also sent the agent a Contract to Purchase Real Estate, but I left a LOT of areas blank - mainly because I didn't know what the info was, like the legal description. I also did NOT sign it. I just wanted to show her what I was looking to get right off the bat. Once she received both the PM agreement and contract, she emailed saying she would pass the contract by the seller and have a lawyer look over the PM agreement. I can only imagine it'll be another week before I get any feedback on either of those the way these deals are going.
BTW, I know I've trumpeted Kellar's book "The Millionaire Real Estate Investor" on here many times, and I'll do it again, because I think it's a good book to have for ANY level of RE investor. In one part, he starts talking about multi-family properties and how important it is to think in units vs. properties and the advantages (and disadvantages) of MF's vs. SFR's. It's definately a good read. Of course, individual circumstances paramounts any generalized advice, but to me at least, it makes sense to move up to duplexes, triplexes, 4-plexes, and then on to apartment complexes. Each stage has it's own issues to deal with, certainly.
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2 comments:
Well, I was told recently by a lender who deals only with large multifamily deals that the lender's will look at two things when determining a deal: 1.) the cashflow of the property and 2.) the resume of the investor. And, by "resume", I mean the qualifications of the investor--have they successfully owned multi's before? He said what I'm doing by going the quadplex route is doing wonders for my "resume" and my ability to qualify for lending for multi's of a little larger size, say a 12 unit, for example.
Hi Trisha - From my VERY limited experience, you're probably correct. I know when I called a small local lender about a commercial loan, he was only concerned with my "personal financial statement" (i.e., resume) along with the property numbers. I'm just trying to keep mum on these particulars properties because I'm not even sure they'll pan out. And, even if they do make it to fruition, I'm not 100% sure right now of the final numbers.
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