All Forum Posts by: Adriel Cisneros

Along the same line as it relates to refinancing a multifamily BRRRR asset --

Scenario:

Abandoned building with 3 Floors. 9,457 Sq. Ft. 12 total units. 100 percent vacant. Entry cap rate is 0. 

After the apartment is Rehabbed. Rented. 

Is it possible for a project to be exposed to negative leverage despite the following:

1. Exit Cap Rate is lower than the Interest Rate on new loan

2. New loan meets LTV and DSCR requirements along with a positive Cash on Cash return

Good afternoon -- 

IF I am raising funds amongst friends and family with a pre existing relationship, is a JV agreement more applicable than a syndication with both accredited and non accredited investors?

Stated differently -- do I need to register the offering IF my partners are *only* friends and family? 

Acquisition size will not exceed 2.5 mm USD with equity contributed by approximately 7 to 12 partners. 

Follow up question: 

Any lender recommendation in south Florida who would underwrite small multifamily using a JV structure?

Thanks! 

Appreciate the response. I was asking for data that would highlight the spread between appraisal and market. 

For those in Cook County, IL -- generally what is the delta expressed as a percentage between these 2 variables? 

Is it roughly 10 percent or higher?

Would a recent tax appeal impact the appraised value to the downside? 

Thank you Chris. 

Expand further. That’s a great point. 

@David A Lisowski

Fantastic point and certainly not worth the headache. 

I also read on other forums where transferring the deed to an LLC will also impact the insurance coverage which will immediately notify the lender.

Appreciate the remedy. 

Have an outstanding start to your week everyone. 

@Scott Mac excellent observation 

@K Kniewel Just to clarify - were you referring to Chicago specifically or Cook County? 

I was not immediately aware there may be a difference. 

@Troy DeLong -- thank you for the great insight. 

You are absolutely correct. 

Lenders will certainly count rental income whether its in your name or the single member LLC. No material difference.

And filing a Schedule E and 1099K will remain unchanged in the aforementioned scenario.