All Forum Posts by: Amit Barman

Scott and Jessica,

Thanks for the complements.

Scott,

Most of the times, buy and hold works great when you have good commute, but when it comes to flipping, location, specially the school district becomes major selection criteria. A good flipping will give you top $ of your comp, but a good location will help you sell quickly. You can inbox me the potential property, and I will be happy to evaluate it's flipping potential.

On the other hand, I have this property at hand at the best school district, where just the regular comp giving indication of at least 100K profit margin. My previous investor got into a big commercial project and tight on cash flow, so I am really looking for a private investor to grab this opportunity.

Jessica,

I played with the Code a little here;) code talks about not more than 4" gap between guard rail, and calls for handrail. I provided both. So he did not have any objection. Baltimore City is very accommodating anyways.

Yes, it is Ikea. Below is the kitchen for your viewing pleasure. Found out, Ikea is not that bad after all, as they give 25 years warranty on their cabinets.

I am a professional Architect.Apart from regular building design, I designed many big and small scale commercial and residential renovation projects, However this was my first hands on(literally, looked around for the cheapest and good material and hand carried them to the site.) flip as a Real Estate Entrepreneur, where investors put their money and I put my sweat equity in terms of design, construction drawings, permit and construction management.

It was a Gut open rehab. Sold in three months after completion. aim was to test the water, so did not keep big margin, but I am happy to say that, we were able to sell at a price $40,000 more than the near by comps.

If any Investor in DC/MD area like to do similar venture with me, please inbox me, I have couple of projects, where there is good possibilities to make 80 to 100K in 3 months in and out.

Thanks Dion!

You all are very helpful. I really appreciate it!

Guys,

After going through the advise in this forum, I sent an email to the lender(one of the biggies brick and Mortar), following is the answer:

1. I will set up a LLC for the property only, and the borrower will be the LLC not any individual. Naturally there will be no financial background for that company. In that case, do you need any kind of collateral ?

You are perfectly fine to set up and have us lend to and LLC. Regardless you will have to personally guarantee the loan and the commercial property is the collateral.

2. While I understand, the underwritter will look for the information of the cashflow of the property itself, do you need any financial document of the borrower?

Yes, we will need the 2012 and 2011 Federal Tax Returns for all borrowers

3. do you need any reserve?

To my knowledge NO. but I am sure it looks good if you any J

4. Do you need the explanation of the source of down payment, or in other word, the history of the source? Again that will get back to my first question.

Down payment does not have to be seasoned but it does have to be sourced. Which means we have to see that you have it.

that kind of contradicts many of the comments here. Again, being new to this, what am I missing? What is the catch?

Dion/John,

Thank you so much for taking time to reply.

No, I am not betting on anything, rather trying to gain as much knowledge as I can get, before taking the plunge. Your Insight is helpful!

$40 million is just an example, I am looking at only a 10 unit apartment to get started. There is a huge internet Buzz these days about OPM(other people's money). As a Real Estate Entrepreneur, I am exploring possibilities at this point.(Is it not the definition of Entrepreneur? I come up with Idea, and you come up with money, and we make it happen)

Thanks Guys for all the feedback.

I am new into commercial financing, did flip houses with private investors, so never had to deal with the lenders at all, But please clarify me if I am wrong, as few comments here little confusing to me.

What I understood about commercial financing that, the underwritter mainly checks the cash flow from the property to make sure that the property can pay by itself, not looking at someone's personal assets, and most of the commercial financing given to a LLC formed for the particular property, not to an individual. When I talked briefly to a lender, all he asked is, the CAP rate of the property and what LTV they can offer. So the income source of the borrower, or the source of down payment not supposed to come in the picture.

For an instance, for a $ 40 Million project, no one's personal asset or source of income can support the validity of that project, most of the cases, a company, or a JV comes together to make that project happen.

to my understanding, personal credit, source of down payment etc surely comes to buy a single unit, I learned it it very hard way while buying my own house, but is it also true for commercial financing?

What am I missing here?

I am new to Multi Family investment.

I am trying to make an OPM strategy as I don't have my own money.

While I can manage to raise funds for the initial down payment/closing cost from friends and family, I am looking to explore my options to get loan for the rest %. The brick and mortar banks offering 75% of the price, while many internet lenders offering much more, some even 100%. I am trying to figure out the best possible option.

Can anyone give me tips to differentiate between genuine and fakes? any red flag I should watch out for? any pitfall I should know about?

Thank you so much for your suggestions.