All Forum Posts by: Adam Craig

Closing on my second commercial building soon. Its a 2 level 8000 sq ft office building (exterior pics attached). The location is right near freeway with 2 large car dealerships on either side of me. The building is distressed and has been vacant for 4 years. 

The upper level is pretty strait forward. It divided into 3 seperate units. The plan is carpet/paint/bathrooms.

The lower level is where my questions begin. It was an old VFW so it has a big bar and stage spanning 4000 sq feet. Most of the ceiling/walls have mold so we will probably gut nearly everything. Aside from adding some big windows to bring in light I am not sure how far to the lower level rehab. Do you finish it with drywall or leave it open for someone light a contractor or mechanic who might not need a completely finished space?

@David Wandel

Thank you! That's definitely in the budget for the list price so I'll follow up with some roofers

Going through negotiations on a commercial office building. The agent said the roof needs replaced and my knowledge of commercial flat roofs is pretty minimal. I took some pics and measured it - its 4000 sq ft. Before I call around roofers I want to know what I am talking about. What type of material is on this roof? Its not the same stuff we use on single family flat roofs is it? What are options and approximate costs for replacement? Do they tear it all out or go over?   Thank you!

@Harjeet Bhatti

Okay thank you that clears that up so I won't worry about changing returns.

I am going through a terrible closing experience on a new primary residence and want to see what I can do to improve my tax structure to eliminate this issue. A quick run down on my financials and see if any mortgage guys or investors with primary residence financing can chime in.

I have a 6 figure income from my internet business that I have been owner/operator for the past 9 years. I also have 32 single family rentals and an office building that produce 10-15k/month cash flow (before vacancy/repairs). Because I use the BRRRR investment strategy, I have accumulated big expenses, both capitalized and non. On my taxes I am able to bring losses from the real estate business over to my internet business because we have the "real estate professional" designation - prior to that designation, a lot of those "losses" we suspended until I sold the home. This has been great for tax savings but a nightmare trying to get financed for a new primary residence.

We are trying to get a 450K loan for a house we have under contract and having a hard time. In reality, we have 20-30k coming in each month. But we pay very little in tax advantages from the real estate and our AGI is low. Most lenders wont return phone calls after they discover I have 30+ rentals.

There has to be guys out there with dozens of rentals getting convention financing on a new home. What is the best solution? One lender said if the rentals were on their own return and not listed on the schedule E of my personal taxes it might be different. But my CPA says the numbers would be the same which is why we file everything on one return.

I have a 7 figure net worth and 200K+ cash reserves so its just disappointing because we cannot find a lender.

I am going through a terrible closing experience on a new primary residence and want to see what I can do to improve my tax structure to eliminate this issue. A quick run down on my financials and see if any mortgage guys or investors with primary residence financing can chime in.

I have a 6 figure income from my internet business that I have been owner/operator for the past 9 years. I also have 32 single family rentals and an office building that produce 10-15k/month cash flow (before vacancy/repairs). Because I use the BRRRR investment strategy, I have accumulated big expenses, both capitalized and non. On my taxes I am able to bring losses from the real estate business over to my internet business because we have the "real estate professional" designation - prior to that designation, a lot of those "losses" we suspended until I sold the home. This has been great for tax savings but a nightmare trying to get financed for a new primary residence.

We are trying to get a 450K loan for a house we have under contract and having a hard time. In reality, we have 20-30k coming in each month. But we pay very little in tax advantages from the real estate and our AGI is low. Most lenders wont return phone calls after they discover I have 30+ rentals.

There has to be guys out there with dozens of rentals getting convention financing on a new home. What is the best solution? One lender said if the rentals were on their own return and not listed on the schedule E of my personal taxes it might be different. But my CPA says the numbers would be the same which is why we file everything on one return.

I think I know the answer to this but I am hoping to get confirmation and more insight from the BP community.

Is everyone experiencing low inventory on auction sites like Hubzu, Auction.com,Xome? 

Is this because of the eviction delay? I very rarely buy anything other then bank owned homes from those sites so the foreclosure/REO market is what I am wondering about... I know the MLS market is super low- been nice for selling :)

 Thanks for the tips I am going to check around then, just having an account is fine. This credit union I talked to a few years ago said it more like - if you bring your banking activity over we will have more flexibility. I wasn't quite ready to do this for a potentially better banker relationship.

 I was thinking about holding out until the 2021 with improved taxes and hopefully some end in sight for Covid.

But with the risk of Covid lasting much longer would you suggest take what I can get now even if its for purchase price? I would hate to leave all that money in the deal but I am paying about 12% on borrowed funds until I refinance. Then possibly I could refinance down the road to eventually pull the cash back out?

 I havent checked with them in a few years but I do remember one of them wanting me to be a customer in order to look at giving me a loan. Is that usually the case?