Once I get a few thousand, I’m going to send out a mass mailer to buy an apartment complex. I live in Seminole County, Florida. I would be willing to buy in Semiole, Orange, Lake, Osceola, Polk, or Volusia. I wan to know how I can do research to know which specific areas would be best if I were to own this complex for the next 20 - 30 years. Is there a specific statistic I should be looking at?
Hi,
Calm down a little, take a step back, think about what your doing, create small goals to start and build up to bigger goals!
You know we want you to be successful, you kind of grow on us and like that annoying little brother you can be a pain in the derriere!
But think about real estate from the big picture? You are one person out of millions, investors are involved in roughly two million residential
transactions every year and about five hundred thousand commercial transactions every year.
There are tens of millions of people who own at least one additional property other than their primary owner occupied home! Some of these second homes are rented / leased as vacation destinations. In commercial property their are sophisticated, accredited, financial and institutional investors competing in the market.
The odds of finding an apartment property that the owner will lease option to you in the little tiny itsy bitsy area you mentioned is small at this time! As an investor a property or two may come up in your life time but the odds are today that the apartment owner who wants to have someone step in and take over their property under a lease option is more likely Idaho, Oklahoma, Kentucky, Rhode Island, Oregon, Alaska, North Dakota, Michigan, etc.
In other words it’s not likely to be where you want it to be when you want it! Now if you had $280k you could put 25% down with closing costs on a $1m dollar property anywhere but you still have to buy it correctly, you still have to forensically analyze that property correctly, you have to determine the real value of that apartment property and you have to define the difference between the numbers your presented by the sellers realtor and what that property is really performing at financially.
An apartment transaction can take 3 or 4 months to work the details out, negotiate, get through inspections and close!
There are easier ways to find apartment lease options but you need some experience under your belt, unless your prepared to put $280k per million into a down payment any owner of any property wants to know about you? Your experience? Number of years in real estate? History owning apartments? Your success? etc. They probable are not going to be to critical, but they want some idea from a conversation as to your understanding and knowledge in multi family properties, management, maintenance, your intentions for screening, renting / leasing, how you increase value to eventually exercise your option, and how you save the cash you’ll potentially need for prudent reserves for a refinance lender?
Yes a 3 to 5 year lease option on a apartment property structured correctly and managed correctly it can be done!
Slow your roll, start moving forward and make an apartment property your goal? Get there as quickly or slowly as your willing to work and apply your self!
Good luck,
GR
What is the difference between Idaho, Oklahoma, etc. and central Florida?
I’m not aware that it’s possible to manage a property from that long distance, although you seem to do it.
I would plan to buy with 100% owner financing. I know it would still take closing costs.
Hi,
Why would an apartment property owner 100% finance you for a purchase? Sure a lease with a purchase option still gives that apartment property owner the tax deductions, ability to take the property back quicker than foreclosure in the event of default and creates a fixed income for a lease option period providing debt service and some cash flow!
But if your just going to hand the deed over why not actually sell to someone who would bring cash and new loan to close?
What I said above is the odds of finding someone willing to sell 100% financed is pretty small. The odds of an apartment property owner being willing to lease option his property is better, but the odds an apartment property will be available right now in your little central Florida market is pretty small in comparison to apartment properties being available somewhere else in the country this year!
You still have to overcome the apartment owners discretion desiring to make a deal with an experienced operator!
Lot’s and Lot’s and Lot’s of commercial property is managed at a distance! If I own a single property in North Dakota then a property management company in North Dakota manages that property and takes 8 to 10 percent of revenue for their fee’s!
If I have multiple properties in a city, say Denver at some number of properties and units it is cheaper for us to operate a satellite management office and place our own managers living on site overseen by the regional satellite office staff!
I do not necessarily directly manage all my property, but we oversee all of our management ensuring performance and making sure the property is being managed correctly! We never leave our property unguided and always want to know what’s happening on a daily, weekly and monthly basis!
100 percent of all apartment properties are not for sale / lease option every year, so of those properties that are marketed for sale each year only a small number of those owners may consider a lease / option to relive them of the direct management of the property while providing some control and quick ability to take back over if the property is mismanaged and failing to perform.
A sale is a sale whether it involves down payment and new loan or it’s a wrap / subject to existing financing with an owner carry second? It would take months in the event the payments are not made to take back the property in foreclosure! You could be talking about huge financial risk carrying paper and handing someone the deed in a sale.
The odds of an apartment property owner being willing to convey the deed is pretty small in comparison to direct arms length sale with down payment and new loan or the lease with the option to purchase!
GR
I said 100% owner financing because that’s what Javipa says he does.
I think I remember him saying he can find a new deal every month that way.
Is there something wrong with central Florida as opposed to other places? These are the things I need to know. What is the difference between central Florida and a better place.
Please show me the thread and quote of me saying this. Otherwise, please stop attributing these ridiculous, no-context, quotes to me.
Orange is a good choice.
Why?
Any specific areas? Isn’t Orlando already saturated?
India is best country for real estate investment in commercial & residential. As per new budget strategy Indian real estate investment is more beneficial. For real estate investment always prefer smart cities location.
The one with more people.
Hi,
In my opinion, Florida is one of the best states of US to buy property. If you have any confusion, you can consult with local realtor.
Thanks!!
Great and well-written explanation.
Thanks a lot for sharing it.