All Forum Posts by: Adam Craig

I purchased a vacant 7 unit office building in October through private/hard money and seller carry. I now have 6 of the 7 units either moved in, or with a signed lease and move in soon. Fully lease the building should bring in about 5000/month.

I have been in talks with 2 commercial lenders that do some single family business with me in the past. One said as soon as you have leases in place I can contact him I dont have to necessarily let it season. (smaller bank)

How should I show them my financials to best get this deal done? I dont have a track record of payments beyond a few months so it will be based mostly on leases and future payments.

Purchased the building for 275K - put 35K into the rehab. Need about 315 to pay everyone back.

PS - my business occupies one space and pays average sq/ft rent.

Seasoned investor looking for tips on finding more private money.

I have been investing in real estate for 8 years. I have 38 single family homes and an eight unit commercial building. I am at the stage where I'm trying to transition into buying more commercial properties and apartments.

My main hard money guy who does this for a living finances 75% if my deals has no problem with how many deals I do and offers 100% financing on purchase and rehab with 15% plus 1 point. I have 2 private lenders that have limited funds and I offer them 10% plus one point that I use on smaller deals.

It's nice to be able to pull the trigger on any deal with my main hard money guy but some of these larger projects like the commercial are scary to do at 15%.

What are some tips for finding more private money? I've always read we are offering them an opportunity we're not begging for their money. What is the best way to present this? should I brag about all the deals I've done and all the experience or put something on paper?

Lastly what is an interest rate I would expect to pay additional private lenders? I am happy thing the two smaller guys I have 10% plus 1 points in something 15% to the big guy. But are lower rates usually entertained by folks with money?

 This is an off market deal that was brought to me by one of the commercial lenders I use. He said his client couldn't get the down payment together and he wanted to see if I had interest. I have not seen it other than pictures because he said the seller was pretty firm on price. Property taxes are correct, its a very high prop tax area. I just wanted to run the numbers by BP to confirm what I thought - not a great deal.

I am going to save the time of seeing the property and doing DD if the seller says they wont budge on price. 

I am newer to commercial and would like to start with something closer to 500K but wont rule out something like this if the numbers worked

Agreed, it seems on million dollar building I should take home more than 20K after debt service - what is the "blended cap rate 7.94? 

Seasoned investor seeking private lenders who want to build their wealth by investing in real estate.

I am the owner of CLE Real Estate Group. We have done just over 100 deals in 9 years and have a portfolio of 36 single family homes and a 8 unit office building that we are headquarter out of.

We purchase 10-15 properties a year and are looking to increase that by adding new lenders to our team.

Loan terms are deal specific. Generally - Loan rates range from 7-10% + 1 point on closing. Loan length is 5 months up to 2 years. Loan amounts range from 40K-150K.

We have 4 lenders that we use and I can send as referrals along with a list of current and past projects. We have the single family rehab BRRRR model down to a science.

Please contact me with questions or details. Start earning passive income with CLE invest!

I am in early stages of looking at this off market deal. 24 unit apartment building. Sellers is asking 1million and provided the numbers below.

Below the income numbers they ran some numbers for financing at the full asking price with a NOI of only 19K. It seems I could be one property tax re-assesment away from being negative cash flow if those numbers are accurate and remain constant.

Good insight !

We are in the Cleveland market so summers are warm and muggy. AC is desirable but how much ?

I can replace a boiler with furnace,ac, ductwork for 6-9K depending on the house. Most of the time on new flips we do replace it because I work it into the budget.

But I am getting ready to sell one of my rental properties and its in really good shape - big newer kitchen, updated bathrooms, so we can pretty much paint and list it. That is unless we replace the boiler.

If I can replace the boiler for sale 8K - and the house in this market sells for around 170K. Is this worth the time and effort or hold out for someone who is okay with the boiler?

I have done some research on this topic and it appears Alliant offers the best cash back card which was something like 3% in year 1 and 2% lifetime.

I called them today and was not aware this could not be used as a business card card only on the consumer side.

Between my 2 business we run just shy of a million through Chase business cards each year which we get about 1% back on. Is anyone using anything better? An extra percent would really add up over time.

 After alot of research I went with TenantCloud. Been using it about a year and love it. Managing 35 single family homes and a 5 unit commercial building with ease.