My strategy: 

1. Work for experience, not the money: 
Do the info products with Mike Young @7000/mo, move to dallas

2. Make $100,000: 
Do the Odessa deal $100,000

3. Flip your own houses:
Use your own money, and marketing, and find flips like them, control the rehab, make $100K in equity each deal as fast as possible. 


1600 Dale St. 
Amarillo, TX

Why does this deal excite you? 

To do: 

  1. do a full underwriting following sue's plan. 
  2. raise the money from a group of investors. use a website from squarespace to do it. 
  3. great relationship with the broker
  4. make a very detailed youtube video on the property (one thing)

We must move QUICKLY. Potentially $700,000 in NOI if true and $130,000 gross cash flow per month. Don't leave the house and do the deal. write down the rule of thumbs here. 

Raise: $2,000,000

right now it's $600,000. JUST FOCUS AND DO IT.

If we split with investors 50/50, they get 16% return. if I split with pritam, I will get $150,000 / yr. which is $10,000 per month, therefore I will retire!. I can then use this cash flow to do my own flips. 

Be mature, don't talk excited. 

Owner managed. The property is self managed. it is 15% below market on occupancy. it is built in 1990. it is in a 3.9% unemployment market. it is owner financed. I am working with pritam, who will get the deal done for sure. how much is the real appraisal value? sq ft * sale per sq ft

 

  1. KPI: Price per unit,
  2. occupancy: 85% (marcus and milichap) market avg is 100%
  3. who pays utilities? 
  4. real cash flow: 
  5. real value at 10 cap: $8.2M @ $600/mo, 90% occ, 50% expenses
  6.  how many units need to be fixed? 
  7. why isn't anyone buying it?: just came to market
  8. how long owned?
  9. average rent: 500-550
  10. all 1 bd
  11. pitched roofs, built in 1990
  12. avg rent for 2 bd $734, ours is: $600

     
  13. Links for Amarillo deal: All documents are in dropbox. I am attaching the draft LOI for oyur review. 

Dropbox: https://www.dropbox.com/sh/dfal4intttuuful/AAD8BGe8-batHfLhJ6GkG8Rta?dl=0

 

Broker: Marcus & Millichap Real Estate Investment Services

Lakeview North & South Apartments

253 Units | Amarillo, TX

 

 

  • I am pleased to inform you that based on the information you have provided,
  • Da Chen Inc is interested to purchase the
  • We reviewed the preliminary information provided and we are interested in the opportunity to acquire the Multifamily Apartments. We propose to offer $6,000,000 purchase price.
  • We will put $1,810,000 towards down payment.
  • Our decision is based on our preliminary analysis of the property details and financial information you have provided concerning the above real estate properties and are subject to change based on the further analysis, agreement form the shareholders, appraisal and market conditions.
  • By no means this Letter of Intent be perceived as a commitment to acquire the businesses.

 

 

 

 

http://www.loopnet.com/Listing/19014909/1600-Dale-St-Amarillo-TX/

 

If you or any real estate professionals have any questions please refer to my attention for validity and verification.


This authorization expires at 11:59pm Pacific Standard Time on the 31st day of the month of May 2015 (31 May 2015).

 

http://www.loopnet.com/Listing/19014909/1600-Dale-St-Amarillo-TX/

Demographics:

Males: 17,617  (50.6%)

Females: 17,166  (49.4%)

For population 25 years and over in 79107:

  • High school or higher: 63.3%
  • Bachelor's degree or higher: 6.0%
  • Graduate or professional degree: 1.3%
  • Unemployed: 8.6%
  • Mean travel time to work (commute): 19.2 minutes

For population 15 years and over in 79107:

  • Never married: 34.9%
  • Now married: 43.6%
  • Separated: 4.3%
  • Widowed: 5.7%
  • Divorced: 11.5%

Zip code 79107 compared to state average:

  • Median household income below state average.
  • Median house value below state average.
  • Black race population percentage above state average.
  • Median age below state average.
  • House age above state average.
  • Percentage of population with a bachelor's degree or higher significantly below state average.



Read more: http://www.city-data.com/zips/79107.html#ixzz3ZWB5slmO