Friday, July 29, 2011

July Update

Things have not been too eventful lately.. Hard Money Loan #16 was supposed to be paid off a week ago, but apparently that sale fell through. My partner contacted the escrow company a couple times to try to give them a payoff amount, but his calls were never returned. And we just received another regular loan payment, so all indications are the sale fell through.

Also received a payment on hml #17. Payments have been coming in on that one like clockwork.

Unfortunately, the Houston apartment complex has had another not so good month. After having an occupancy of 90% in May, June's figure rose slightly to 91% but that came at the cost of increased concessions. June also experienced high turnover along with the increased costs that brings (marketing, cleaning, etc). Management expects July's revenue to rebound to about $7,000 more than June.

Expenses actually declined a bit, although the utilities cost rose due to the higher temperatures of summer. Our management company has deferred their fees to help improve the bottom line. Our mortgage switches from interest only to interest plus principal in July, which will raise our monthly payment by about $10,000.

Management is still cautiously optimistic about the second half of the year and they do feel like the overall market is improving. However, the concessions given to attract tenants tend to delay those improvements from showing up in the bottom line for a bit. For the first six months of this year, we are actually running about $105,000 ahead of our budgeted net operating income, although 10% of that amount can be attributed to the management company delaying their fees.

In other news, tomorrow marks the seven year anniversary of this blog!


Tony said...

Hi Shaun!!!

My name is Tony I'm a REI in Miami and was wondering if you lend hard money loans in Florida, if you do please contact me at

Shaun said...

Sorry, I do not.

Another Investor said...

Can't believe it has been that long. I re-read some of the 2005-06 posts to figure out how long I have followed your adventures. Things certainly have changed!

Connecticut Real Estate said...

Wow congrats! its a long journey for you.. hopefully the next 2 quarters of the year will be a success for you and your business..

Danny Johnson said...

Congrats on 7 years!


Just briefly to thank you for the great post.
I am the owner of the real estate agency in Croatia, Europe, and I read your post's with a great interest.
Just keep up with the good work ;)

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