1954 N. Lamar, San Antonio, TX
This is a single family home that went to tax sale twice and was not sold. After doing extensive research I found that there were numerous City liens for mowing the lawn I eventually paid these at closing. Also the title was clouded due to a loan being made by an out of state lender and the owner willingly defaulted on the loan. As a result, no title company in San Antonio would give a title policy. After I got all liens and encumbrances removed I found out of State firm to issue title.
The inside of the unit had been stripped of all copper wiring and water pipes. All of the windows were boarded. I had the unit cleaned up inside and out and then put on the market for sale by owner and sold to an investor out of Las Vegas who did a complete remodel. He was going to keep as a rental but then decided to sell as he found another abandon property across the street he wanted to invest in.
This is a good example of taking an abandon house improving its condition, bringing up the neighborhood and adding to the tax roll.
6214 N. Winthrop, Chicago, IL
This is a 100-unit apartment building in Chicago 2 blocks from Lake Michigan. The building was situated 3 blocks south of Loyola University. It was in a very rough area when the building was purchased. Many improvements were made and all units over a period of time were remodeled.
Soon after purchasing the building a large real estate trust came into the area and bought several surrounding apartment buildings. Because of their size and deep pockets they were able to force changes in the market by doing a stringent application check on prospective tenants that a lot of the landlords in the area were not doing. Eventually they were a strong economic force in the area that brought up property values.
The experience of running and living in this building gave me an excellent grounding in commercial real estate.
7530 N. Seeley, Chicago, IL
This was a 34 unit apartment building that was situated 2 blocks East Of Western Ave and a half a block off of Howard Ave., which was the dividing line between Chicago Il and Evanston, IL.
The building was purchased from a distressed seller who had allowed it to deteriorate. All the units were remodeled. Each unit had hard wood floors which were sanded and repaired and as a result commanded a 10-15% premium. Many tenants were students and employees of St. Francis Hospital in Evanston.
Public transportation in the form of buses and the L train were nearby so tenants had easy access to shopping and the Loop.
7703 N. Lamar, Austin, TX
The partnership acquired 7703 N. Lamar over 5 years ago when the real estate market was just coming out of a recession. At the time of purchase this building was completely vacant. Much blood sweat and tears went into the complete rehab of the building.
In order to save money much of the material in the building such as ceiling tiles and their supports were recycled. Starting with the first floor it was remodeled and the rents were used to do the 2nd floor. The same procedure was followed until the 5th floor was completed.
7701 N. Larmar, Austin TX
In December 2015 the partnership closed on 7701 N. Lamar which is an identical building. With the purchase we are able to get economy of scale since both buildings are on same utility meters. The general partner John Graham was able to include in the second purchase a loan that would allow us to have solar panels installed in the rear of the building that will pay for themselves in 5 years. The city of Austin as well as the federal government had in affect during 2015 an incentive program that will allow a very large rebate each month to be applied to the power bill. This rebate will last 10 years which adds to the revenue and in turn adds to the cash flow and value of both buildings.
