Can anyone provide me with a checklist of what I will need to purchase multi family housing units.

I have started an corporation with 4 other gentlemen, we have a combined income of over a million dollars with very low debt to income ratios. This is our first venture with are interest being purchasing multi family housing units and are seeking good advice and possibly a checklist of things that use to navigate the purchasing process. If anyone could help us out we will greatly appreciate it.
In Buying Property - Asked by Loren J. - Nov 7, 2010
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Lisa A.
Owner/Investor
Phoenix, AZ

Credit scores, income, liquidity and most important, just as important as credit/income/liquidy is now experience. Banks no longer are just relying on 3rd party management, but are looking at the buying group as well.
If your group is just starting out, and lack experience in managing multifamily investments, you can consider partnering with a private equity real estate investment firm. They are the ones that take on the responsibility of finding the deal, due diligence, negotiating, funding and closing. You will be a passive investor, but it will give you the introductory to multifafmily investing that you seek and generally with high monthly returns and large equity positions.

Nov 7, 2010
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Lisa A.
Owner/Investor
Phoenix, AZ

Credit scores, income, liquidity and most important, just as important as credit/income/liquidy is now experience. Banks no longer are just relying on 3rd party management, but are looking at the buying group as well.
If your group is just starting out, and lack experience in managing multifamily investments, you can consider partnering with a private equity real estate investment firm. They are the ones that take on the responsibility of finding the deal, due diligence, negotiating, funding and closing. You will be a passive investor, but it will give you the introductory to multifafmily investing that you seek and generally with high monthly returns and large equity positions.
**apologize for double post, website did not attach propertly**

Nov 7, 2010
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Rob B.
Chandler, AZ

Loren....
I have been a buyer's broker for over 35 years. If you would like to send me an email, I will be happy to provide you with one of the forms I use for the evaluation of properties. I develop a spread sheet form for every property I purchase for a client, rather than relying on a programmed form.
This is absolutely not a solicitation for business and I will provide the form I have suggested with no cost to you or strings attached. It is my way of giving back to the industry that has treated me so well for so long. In other words be my guest if you wish.
Good luck Loren....
Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 email: rob@capratecommercial.com

Nov 9, 2010
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Michael J.
Fort Lauderdale, FL

If you are buying all cash you will need very little other than standard documentation to transact and to record proper conveyance of title. If you are going to utilize financing, you will need much more. MOST IMPORTANTLY, be sure to get the current owner's records (operating statements, tax returns, tax IDs, rent rolls, monthly collections, EVERYTHING) before you close or it is unlikely that you will ever obtain these important items.

Nov 10, 2010
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Steve M.
Owner/Investor
Plano, TX

Loren,
It depends on what you are buying and where. I have been doing it for about 10 years now in the Dallas, TX area. I am an investment sponsor/General Partner. If you send me an e-mail I would be happy to discuss with you your area of concentration, etc to hopefully lead you in the right direction.
You will first need to define your criteria before you can even make out a checklist. Narrow it this way: State, city, area within the city
Type of property- when built (age range), type of construction, preferred unit mix, blue collar/white collar, low income, medium income, high income, potential redevelopment areas or stable long term areas, bad areas
Number of units, size, type, amenities, etc.
There are internal checklists- property financials, property condition physically, age of components on property (roof, HVAC, Hot water heaters, plumbing, appliances, etc), city code issues, inspection scores, current rents, current occupancy, unit mix, crime on the property, etc
External lists- occupancy and trend in the state, city, and submarket. Rents and occupancy in the 10 closest competitive properties to the one you are purchasing, rent rate trend expected for area, regulatory issues, condition of competing properties and comparison of their amenities and "niceness" vs. yours, etc
The lists go on and on. To do proper due diligence it is a lot like work if you do it right, if you do it wrong you might need a second job to pay for the mistakes.
I have seen the city water rate kill the potential of a deal to work, a year later they raised the rate yet again which would have killed it even more dead- saw that deal killer after 8 years in the business. Somebody bought that property for more than what I would pay, hopefully they will have success but my gut told me I wouldn't at the same price.
Contact me if you want to discuss. steve@mb35.com

Jan 17, 2011
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