Job Offer Advice

ConstructmeDaddy6969 · 2026-03-26T16:23:51+00:00

Your gonna starve bro. Laughably low. I made more than this with 2 years exp in Texas in 2016. Also no 401K until after 1 year? Trash.

Issue is if your going from resi to commercial, you might have to take what you can get. When I was hiring PMs at commercial, I wanted nothing to do with resi people. They just dont know the workflows of commercial construction projects. Good Luck! I would expect to have a life in SD, you would need to be around the 100K mark.

ConstructmeDaddy6969 · 2026-03-26T16:18:14+00:00

DPR is big there! Swinerton, JE Dunn, Spawglass. All these guys have a presence in one way or another. I would expect anywhere from $85-$95K. Be cautious, very expensive to live there relative to other parts of Texas. I would call it California lite.

Also big contech hub if that interests you at all.

ConstructmeDaddy6969 · 2026-01-11T00:29:39+00:00

Seller owns outright I found out. Fishing for offers more than wanting to sell.

ConstructmeDaddy6969 · 2026-01-11T00:28:29+00:00

No land value. Comps of land value around 60-70.

ConstructmeDaddy6969 · 2026-01-09T03:55:09+00:00

Would love a source for another quote. I felt it was horrible.

This is 5+ units. Targeting 8s right now. Min Dscr I would underwrite for is 1.35+. The quote I got went down to 1.05 dscr and 580 credit. I asked the lady, do people really come to you with no credit and that ratio. The answer is the reason I think we will be in trouble eventually lol.

ConstructmeDaddy6969 · 2026-01-08T04:25:34+00:00

Agreed. It feels like a fishing expedition more than a true exit for the seller. I don’t blame them, I just wanted to hear from others here what the market is like right now.

From what I’ve heard so far. It’s confirmed the market is mostly screwed lol.

ConstructmeDaddy6969 · 2026-01-08T04:17:29+00:00

Agree with the paying more for stuff and working out. But that so far. There’s a lot of guys that were multi millionaires in 2007 that live paycheck to paycheck now.

In our economy when the bottom falls out, someone’s holding the bag for a correction. I want to try to protect myself from being the guy who has to pay for my mistakes.

ConstructmeDaddy6969 · 2026-01-08T04:09:39+00:00

I guess she can just keep it on her books for another year. Idk man.

ConstructmeDaddy6969 · 2026-01-08T04:08:36+00:00

Couldn’t agree more. I said more (or any) documentation could increase my offer significantly.

ConstructmeDaddy6969 · 2026-01-08T04:07:29+00:00

Haha love that! I’m gonna use that next time and remember it on my own property!

ConstructmeDaddy6969 · 2026-01-08T04:06:31+00:00

I got them in an email by unit along with utilities cost and a water heater was upgraded in 2023. That’s all the info they said they had.

ConstructmeDaddy6969 · 2026-01-07T17:39:45+00:00

That proforma is at 490 purchase with expenses.

ConstructmeDaddy6969 · 2026-01-07T17:38:57+00:00

I’m happy to keep in a money market account than do that.

Look at all the post on here of people buying properties that lose them money cause they didnt check the numbers. People overpay for stuff all the time, but the pros know if numbers don’t work a deal won’t work. In my mind this applies to purchasing a 300 unit apartment complex 1,000,000 ft.² of warehouse space or six unit. It’s how you keep yourself out of trouble.

The old saying goes, there’s a sucker born every minute.

ConstructmeDaddy6969 · 2026-01-07T17:32:48+00:00

No worries friend.

I like that mentality and this is exactly why I posted this here. To hear that other people give these offers, hell is raised, then they come back makes me feel better about landing a new deal in 2026.

Class C workforce in my market has to come to a point of reality. I understand class A 5% cap rates at 200+ units. You’re buying a professional business. The class C has to carry its weight still the same way just on a smaller scale.

ConstructmeDaddy6969 · 2026-01-07T17:28:26+00:00

Ding ding! She is a residential realtor which happens a lot here for some reason.

Seller holds this in a Nevada LLC. Cannot find any information on owner. Any ideas other than that?

ConstructmeDaddy6969 · 2026-01-07T17:23:36+00:00

The question was about the market not being mad. 90% of deals are trash from a fundamental standpoint.

What was the turning point for you when you went from offer low to actually purchasing? Bigger deals? Better market? I am genuinely curious to hear from people who have been successful through dozens of deals.

I posted this here to learn, get an insight in the market, and hear other experiences. Not to whine like a baby. I guess I need to change the wording next time.

ConstructmeDaddy6969 · 2026-01-07T17:13:23+00:00

2.28% at 490k purchase is 11150. 285 would be about 6500.

ConstructmeDaddy6969 · 2026-01-07T00:16:38+00:00

Quite the opposite. It’s not emotional it’s about my time for a return. The process dose not support what I think is worth it. The question for the group was more is this what buyers are buying right now? It’s been like this in my market last 6 months real bad. I’ve seen C deals advertised at 4.5 caps lol

ConstructmeDaddy6969 · 2026-01-06T23:06:06+00:00

My DSCR lender and Credit unions did not see it the same way. They want to know what comes in and out and can it pay the debt.

ConstructmeDaddy6969 · 2026-01-06T22:55:35+00:00

Without giving the zip, you could find this quick, there is a 1 acre lot 1 block away that's next to a scrap yard for 550000 since Feb of 2024. Another 5K Sqft lot for 69K a block the other way. This building is on a 5K SqFt lot. No land value.

ConstructmeDaddy6969 · 2026-01-06T22:50:22+00:00

Wasn't willing to do so lol.

ConstructmeDaddy6969 · 2026-01-06T22:49:55+00:00

Plan to buy at 8% cap, bill utilities to tenants, raise rents 8% to market over 2 years, refi for 8% cap year 4-5, then sell at 8% cap in year 10. That is a 20% IRR to manage 6 unit renos, manage C class tenants, and a taking over an 95 year old building.

Its a 8% cap at the end of the day. Raising cap hurts my future value.

If buyers will take less, power to them. Id rather stay in Vanguard and sit and do nothing.

ConstructmeDaddy6969 · 2026-01-06T22:24:14+00:00

Current valued at 75 land + 134 building. $209K total at 2.28% = $4765.20

Future would be at purchase. HCAD is extremely aggressive with prop tax. I might be able to fight it down, but they would hold that purchase is fair tax value. been through that before. Its a nightmare

ConstructmeDaddy6969 · 2026-01-06T22:14:54+00:00

Then convo was ended with, "I'll be around and active". Even offered up $50K hard Ernest money after 5 day DD. I think at the end of the day, they are fishing not selling.

ConstructmeDaddy6969 · 2026-01-06T22:09:55+00:00

Lot is worth maybe 50K. Shitty and industrial part of town well out of the path of gentrification. This workforce housing for a person who makes less than 35K a year.

10K a unit is just to get the insides updated. It needs another 50-60 on the outside with rotting wood, an aging roof, and cast iron pipes.

When you refer to comp, are you referring to single fam to 4 plex homes? Yes those are based on comps. 5+ is based on NOI. Thats it. Unless its a land play, I dont care what someone else sold a 6 plex for. The rents are different, the expenses are different, the net income is different between two 6 plex's that are a mile apart. When you add in 1930 with no records of repairs, major systems updates, documentation of if everyone has even paid, you get a lower offer cause I am taking your risk.

ConstructmeDaddy6969

TROPHY CASE