All Forum Posts by: Jennifer Lee

they knew that I bought the unit 50% occupied. it's now only has 1 vacancy left.

they used the appraisal value. which came to asking price

I haven't thought about refinancing bc we just bought it less than 1 yr. so u just made me think ;)

yes and no.

I have 1 bad commercial and 3 awesome.

1 had 1 bad residential, but only because she lost her job in 2nd yr. and things got rough. I worked with her...

but I knew what I was getting into. no surprises.

I always suggest my client to meet the tenants. 

before u buy, chk the student rental policy. where we are no more than 3 related blood tenants can live in 1 unit. so 5 bed homes are harder to sell. bc if city finds out, they will be fined.

A Realtor only needs to know enough to CLOSE the DEAL.  

An Investor ACTUALLY has to FIGURE it all out, REALIZE the Potential.

-----

ex. Realtor need to know just enough about the market, ARV, the process. Find the people involved. Once the deal is done, they move to the next deal.

the Investors that actually buys the unit, has to make what the REALTOR's projections a Reality.  Make the renovation, figure out the zoning, get the permits approve, Negotiate the contracts, and realize the potential of the property. When the deal is over, it's theirs to figure it all out.

@Ryan D. Good question, following.  Because i bought my unit at cap rate 5%, and now with my improvements and new tenants and leases I am at 9% cap rate.

@Benjamin Barredo 

People are FLAKES, the barrier to entry in our industry is ZERO.  The reason there are GOOD and BAD Realtors is because the barrier to entry is ZERO.  If you can pass the RE Licensing Test you are in.  The true test comes after the test and what you do with your license.  

That is why brokerage firms spent all that time TRAINING AGENTS.  you have ppl from all walks of life.

If I could have a penny for every investor prospects that calls me, every GC that promises me stuff, and Buyers/sellers that are just fishing. 

If you want to be in this business, you have to accept this fact.  Wholesaler or Realtor we are the middle man.  We have the information, and something we have to give out our card to gain business. And we HOPE there is loyalty on the other side to stay and work with us.

And sometimes, this just happen, they get busy.  In this business we also can't have hard feelings.  As a Realtor, we NEVER know who will be on the other side of the table.  Buyer pick the house, and you are stuck with who ever the listing agent is on the other side.

------

That said, I read your POST!  YOU have Drive, and you don't need a mentor.  That one guy gave you a few tasks and you KILLED it!!! That is your lesson!!! You learnt to get information, resources, and lists, now take that and implement the idea.

When I didn't have clients when I started, I made myself my client. I started to learn the tool of the trade to find me deals. Or my scenarios, so when the real clients comes along I am not figuring it out then.

Just keep moving forward, meet MORE ppl.

I had to go through at least 10 investors to get my first Deal, and that was almost 100 offers.  I did it, b/c I took it as homework.  By the time the real deal came up, I already had negotiation and offer writing down to a science.  I just needed to learn how to close the deal ;p  

So take everything as a stepping stone to the next, There is no driving directions, only a map and a compass in this game ;p you have to chart your own route

I am not too familiar with the whole financing process, that my husbands forte.

When we were applying for our 15 yr fixed commercial loan, I prepared our cash flow projections and existing/current numbers. I brought everything in a binder like it was suggested on the Podcast.  It included all the existing leases, rent roll and history.  Repair and deferred maintenance numbers.

The lender had an appraiser do an evaluation, it was more in depth then a residential appraisal. 

Since this was our first  commercial loan deal, they were more interested in us as applicants.  The lender also knew me from our business dealings. 

I used to tag along my parents investments as a child, but I started at 24. My parents' REI paid for my education and my first home.

I became a realtor in Indonesia at 22... got married, came to the US. 

My parents set us up with our first investment buy/hold as a wedding gift, and that is when my journey started at 24.  I didn't become a REALTOR in the US til I was 35.

By then I ready did 2 flips,  1 live in flip, 2  commercial rentals, and had rentals in 3 different states long Distance (NC, MA and PA)

CASH BUYER, HELOC from equity on my parent's gift bought us 6 of our future properties.

We then 1031 the property, with commercial financing to purchase a 6 unit commercial unit

Thank you!!!!

My question is:

how does SBA loan work? How do you use it for Commercial and Construction?

My mortgage broker is all excited about it, I haven't had the time to talk to him in depth on it. But mostly because I don't understand it ;p

He was mentioning to me, for myself and in case I come across clients with needs ;p

Thanks you, Please explain like I am a 2nd grader, ;p this is over my head

Most importantly with commercial, you CAN ASK!  but you must also VERIFY!!!

you must talk to the TENANT, COUNTY, NEIGHBORHOOD BUSINESS, to confirm what is given.

1. I bought a 6 commercial unit, and the owner and agent said, "everything" is grandfathered in.....elevator, sprinkler system etc.

BUT what he didn't realize, was the township knows that he is a SLUMLORD in a grade A area.  And so at my watch, I was warned "EVERYTHING IS NOT IN COMPLIANCE", 

I talked to the township b.c I was building a good rapport with them. I understand, but you need to give me time to remedy. I can't change everything on a dime.

THE SPRINKLER WAS 'THERE' but NEVER ACTIVATED... SO that was a cost I had to consider

NOT TO MENTION: all kinds of discrepancies on LEASE ITEMS.

I talked to all the TENANT and we negotiated a NEW 3-5 yr lease prior to closing. at closing the existing leases were assigned to me, and I went to all the tenants after closing to sign our NEW leases. 

I did the same for residential leases on a 5 unit mix used building.  New rents and terms.