All Forum Posts by: Brian Walters

I am under contract for my 1st multifamily purchase. 12 units in Raytown, MO. I am so excited! There is still a long way to go, but I am looking forward to the challenges that lay ahead.

@Douglas Spencer That is a good idea. I will try that. Thank you!

I am looking for multifamily to purchase in the Kansas City area. I would also look in Tulsa, Oklahoma City, or Sr. Louis. 

I am curious who people use for gaining contact lists.  I would like to get a current list of owners and phone numbers for properties in my area.  Any recommendations? 

I'm in Kansas City.

I'm considering the purchase of a home that has been gutted and ready for someone to take over and make it new again. I have experience in this type of work, and would like to do my first rehabb and sell. Are there any lenders out there still funding these types of projects? What should I plan on when I do my financial analysis on this property for the lending terms? I'm pulling comps, figuring the costs, and now need the lending side such as cash down, interest payments, etc..

Thank you,
Brian

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I would love to see an example of the proposal if you don't mind sending me one. What do you think about my situation? If I can get the cash, do you think it has a chance to fly?

The terms for the $500K, and thank you for letting me know that I would actually need $625K, will be of no risk to the lender. The funds are likely to come from a design build team of architects, engineers, and a construction firm. This money will be paid back from the loan proceeds which is already planned for in the construction budget. Also, a JV will have been entered into with a 30% to 40% split. Their % will be paid in prefered profit share with a preset IRR upon sale of property which is estimated at 5-7 years holding period. The pro-forma have been put together by a private party very familiar with the HUD financing and project requirements and does the meet the necessary ratios of sq footage and revenues. There are 2 independant feasability studies that have been conducted that say that there is a need for this type of development in this area, but I have not got my hands on those studies yet. My real question at this point is this. If I go out there and motivate the investors to get me the funds needed, all the construction docs, etc.. to get to the closing table, will I qualify for the loan? I don't have any skin to put into the game at this point, and have no real collateral either. What I do have is potentially the right connections to get to the closing table, but I don't want to use them up only to find out that I can't close anyway.
Also, the management is in place already as this is a part of a larger development, and I plan to hire a developer to with experience in this type of build to co-develop this with me. My experience is more in line with industrial project management and business development.

THe proposed development is a luxury apartments over retail building with an underground parking garage. The $500K covers the fees and the completed construction docs that HUD will require. What do you mean by must have 125% of the cash required to close the loan, and what do you mean by the lender wanting to know the terms of the lender? Do you mean the terms of the investor for the $500K? I'm thinking that I would give ownership stake in the development rather than make it a simple loan.