All Forum Posts by: Alyssandria L.

My money investor shared with me that the terms of his last deal, below.  Could you please explain to me in layman's term what this means in detail and pro vs cons for me.  Are these terms typical?  Additionally, his equity split is Investor Equity (80.0%)

Sponsor Equity (20.0%), is this also typical?  TIA

Waterfall
Upon sale, proceeds will be distributed in order as follows. Please note any unpaid preferred return will be accrued: Senior debtholder Repayment of capital and any accrued returns to meet the 9.0% preferred return At sale investors will receive their pro-rata share of 25.0% of the remaining profits

Hi Rick,

I see this post is 2 years old. I'm curious if you've found an answer to your question. I have the same buy and hold strategy in Chicago and want to make sure I'm considering the costs that come with an ARM loan. Any cost in rolling over after 5/7/10 years? Do you maintain the same amortized schedule, i.e. does more apply to your principal further into your loan?

I"m originally from St. Louis and have family there.  How is the multi-family rental business there right now?  Do you find it lucrative vs. acquisition cost? 

@Phil Janasac   I'm curious as to what you ended up doing with this property and the legality of the coach house.   I'm in a similar situation where the property is zoned RS3 and the main house has 2 units occupied and an unfinished basement.  I would like to make the coach house 2 units (1st & 2nd floor).  This would make the property a total of 5 units.  

From reading your thread I pulled some permit information and the property was approved for "NEW SINGLE FAMILY HOME WITH 1MTR &1PNL" in 1998.  This would be the coach house.  I guess this would mean that the coach house is legal?

However, I think the property is only legally a 3 unit and that's why they never finished the basement and the coach house is one very large unit i.e. "single family home".   2 in the main house + coach house.

What is the likelihood that I could get it zoned as a 4 or 5 unit?   I haven't purchased the property yet but the financials would only work if it's at least a 4 unit.

Opinions? Advice? 

Since I'm going into this with a partner I want to make sure I'm protected.

I'm looking for a lawyer to draft an operating agreement for a series LLC. If you know of one that has experience in this area, we'd really appreciate the recommendation!

Congrats on retirement! You're An inspiration! I love the idea of aging a cigar. I'm going get one tomorrow since I just started REI earlier this year. What satisfaction to light that up, hopefully in less than 10 years!

Originally posted by @James Syed:

I have series LLC. I get a commercial loan from a local bank with the following terms;

James,  I also have a seires llc in IL.  What banks are you getting your loans from?  

We did a 203k for our 3 unit and you only have to live there for a year. At least that was the rule 4 years ago. We also refi out of it for better rates. One thing I will say is there's a lot of paperwork involved and extra expense due to needing a FHA inspector to inspect the project and then release the funds to the contractor. The up side - if it's your first rehab/multi unit it gives you some protection as you're learning.

I'm a beginner investor and have a 3 unit property that we rehabbed and are occupying and were able to get a mortgage the conventional way. I'm looking to get my second rental property and execute the BRRR method!

As I'm looking into private lending for $175K to obtain the property + rehab cost. Then refinancing it in a year or so.  I reached out to a private lender who gave me these terms:

"Loan Amount: $175,000.00

Loan Duration:2 years

Interest Rate: 5%

Total Interest: $17,500.00

Monthly payment: $730.00

Cumulative payment:$192,500.00

Number of payment:24

Note: Only the interest will be paid 24 times of $730.00 monthly and the principal of $175,000.00 (loan amount) will be paid at the end of the loan duration (2 years). Let me know if you are in agreement with the above loan repayment statement so that we can proceed."

What I'm concern with is that he didn't ask anything about the property - nothing - except how much I need to borrow.  Is this normal?