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All Forum Posts by: Alex Boots

Alex Boots has started 3 posts and replied 12 times.

Quote from @Marcus Auerbach:

@Alex Boots - The mechanicals of fixing your credit have been throughly explained. Success in real estate investing requires also a personal transformation (who you are) and that breaks down in 3 steps. In short: Be. Do. Have. Most people wnat to start with the last one, have, and think that fixes their problems.

1.) First you have to become financially literate, study the topic, read books like "The Millionair Next Door", learn how to manage your personal financials, your credit and develop habits around your personal finances. Is short: become a real estate investor in your mind.

2.) Stept two is you start doing all the things, that succesful investors do. Network, analyse deals, study the market etc

3.) Have. That's almost the easy part and will happen automatically after 1 and 2.

Marcus, great advice. Are you a scientologist?
im familiar with the be do have concept. 

Post: Cash at closing

Alex BootsPosted
  • Posts 12
  • Votes 5
Quote from @Caroline Gerardo:

@Alex Boots experienced people took the time to give you answers. Some may not be what you want to hear. Your idea of underwriting from a desk isn't bad. 48 units is big race cars, you need 25% cash and experience on tax returns to demonstrate. Most multifamily loans are short term and you have to keep requalifying as years go on. Multifamily right now is shaky- the next one to struggle after office and hotels. Maybe some REO's will be good, unknown...

To use your quote "people should stop making assumptions," I don't read @Bob Stevens as difficult -we don't know you, you don't know us. My answer gave you what a seller wants: the highest amount of cash money in pocket at closing. Seller doesn't care if buyer has a loan or all cash- seller wants the money fast, full price, efficient with little expenses to seller. All cash is faster and daily carry costs are a concern. Multifamily loans take time and don't always go smooth. Also I answered that 48 units- there is no conventional loan. There are commercial lenders, REIT's, Fannie and Freddie brokered through a BIG conduit, or cash...

Keep asking questions there is no wrong question, but sometimes incorrect understandings...  Keep learning. I started in the hard knocks category. 


 Got it. Thanks for the insight. 

Post: Cash at closing

Alex BootsPosted
  • Posts 12
  • Votes 5
Quote from @Steve Vaughan:
Quote from @Alex Boots:

I am looking at a 48-unit deal and spoke to the broker today. I asked him other than price, what motivates the seller the most? He said cash at closing. 

Can someone clarify what this means? If I get a conventional loan to buy this (60% LTV) is that different than cash at closing?

My guess is nothing creative.  No seller-financing, sub2 , etc. 
The seller is motivated by money.  Big surprise, right?  The broker gave you no information.  Big surprise again. 

Try not to get discouraged about this thread.  You'll see the same poster's on BP just saying how many deals they supposedly do or whatever but it's not everyone.  
Thanks Steve! Best advice in this thread. 

Post: Cash at closing

Alex BootsPosted
  • Posts 12
  • Votes 5
Quote from @Caroline Gerardo:

Seller cares about the money in their pocket at closing. They have zero motivation to sell if they get no cha ching.

There is no zero conventional loan for 48 units. 

Listing broker is making a living, and right now it's not easy. Expecting them to train you is not kind. I hope you told them you are learning and they gave their time to you as a gift. 

Everyone starts somewhere. My suggestion is you go work as a go-pher for a broker to learn from the inside it will be more valuable than your desk approach.

Bob hijacked my thread and assumed I'm doing something I shouldn't.

I simply asked about the terminology involved with what a broker said. 

We can close this forum out lol. Clearly my intention was not understood.  I'm not wasting brokers time or anything. I'm a guy looking at commerical multifamily deals. Nothing wrong with that and people should stop making assumptions. 

All good though, thanks everyone. 

Post: Cash at closing

Alex BootsPosted
  • Posts 12
  • Votes 5
Quote from @Bob Stevens:
Quote from @Alex Boots:
Quote from @Bob Stevens:
Quote from @Alex Boots:

I am looking at a 48-unit deal and spoke to the broker today. I asked him other than price, what motivates the seller the most? He said cash at closing. 

Can someone clarify what this means? If I get a conventional loan to buy this (60% LTV) is that different than cash at closing?

He means cash " as is"  close ASAP, All my deals are cash as is, which is why I get great deals BTW should not be buying this, you are not ready. How do you even know this is a good deal? Have you walked it, do you know the reno budget? Show this deal to someone doing deals, you will earn a fee, learn then go on your own.

Good luck 



 Cash as is meaning no mortgage/loan?

Also who said I was buying this deal? I'm underwriting it and learning the terminology and talking to brokers. 

Ok so you are underwriting this but have no experience HMM, 

All the best 


So you're saying I shouldn't practice underwriting deals?  And that I have to buy anything that I want to underwrite? Not sure why you are advising that.  Everyone starts with no experience big guy, even you

Post: Cash at closing

Alex BootsPosted
  • Posts 12
  • Votes 5
Quote from @Bob Stevens:
Quote from @Alex Boots:

I am looking at a 48-unit deal and spoke to the broker today. I asked him other than price, what motivates the seller the most? He said cash at closing. 

Can someone clarify what this means? If I get a conventional loan to buy this (60% LTV) is that different than cash at closing?

He means cash " as is"  close ASAP, All my deals are cash as is, which is why I get great deals BTW should not be buying this, you are not ready. How do you even know this is a good deal? Have you walked it, do you know the reno budget? Show this deal to someone doing deals, you will earn a fee, learn then go on your own.

Good luck 



 Cash as is meaning no mortgage/loan?

Also who said I was buying this deal? I'm underwriting it and learning the terminology and talking to brokers. 

Post: Cash at closing

Alex BootsPosted
  • Posts 12
  • Votes 5
Quote from @Randy Rodenhouse:

No.  Not sure what that broker meant since getting a loan is essentially cash at close.  


 That is what I thought

Post: Cash at closing

Alex BootsPosted
  • Posts 12
  • Votes 5

I am looking at a 48-unit deal and spoke to the broker today. I asked him other than price, what motivates the seller the most? He said cash at closing. 

Can someone clarify what this means? If I get a conventional loan to buy this (60% LTV) is that different than cash at closing?

@Chris Seveney and @Brett Deas thanks for the information. 

In our case - together the GP's (it's my wife and another couple, total 4 people) - we have net worth at about 1.2M.  We are looking to put minimum equity from ourselves into the deal <5%? Then get LP's. The reason for this is we simply do not have loads of cash to put in. 

We would really only qualify for a 1.2M loan due to the net worth constraint.  We do have the 10% liquidity requirement on a 1.2M loan. 

Should I structure this deal differently than GP/LP, as this will be a small commercial deal? Or try to find lenders who will work with us?