All Forum Posts by: Justin Greiwe

If there are any Cincinnati area investors out there, could you share some contractors you use for putting on siding (and secondarily roofing)? If you can share some cost benchmarks that you have paid in recent years that would be great, as well as if you bought the material (and where) or if you let the contractor buy and then what the cost breakdown has been labor and Material = total ...I believe siding is often figured by square, like roofing? Is that correct or is there another good benchmark to estimate cost from.

I am mostly a landlord in Cincy and doing a few flips here and there, I have good contractors but none of my guys do siding and I could also use a good roofer. I know the siding and roofing companys pricing is outrageous and more top of the line materials (ie insulated siding) and much higher cost than I've heard many investors say they can reside a house for...so I'm hoping some local investors will help point me to some great priced and reliable contractors that they can vouch for.

Thanks!

Thank you both for the insight. I currently own one commercial property and several residential rentals with about a 6 year history. That said the tear down/build up of a mixed use would be new for me but it is in a market where I own 4 residentials now, a college town, and the small downtown area has had extremely good occupancy and high rent rates for many years, even during the market down swings. I think its a strong investment but will need to research what options are out there and think creatively.
Joel, I will definetly follow up with you via email to discuss our goals further, I greatly appreciate your offer to provide some advice!
Thank you

Thank you all for the responses. This pretty much reassured what I was doing was the right way, but I am thinking I still need to fine tune it.

Dion, I did want to ask in regard to the great information you provided if you could clarify for me your last paragraph. Are you saying that in a situation like mine I could make the management LLC an owner of the holding company LLC's (I assume formally via operating agreement and or state LLC amendment) and then the management company could hold just one checking account on behalf of the other llc's? Or would it still be required to have a seperate checking account for each llc and the management company can pay bills for the other LLCs and just disburse to them their net income once a year as Will Barnard stated?
Thank you again, my friend has already conceded his assumptions were wrong, so now I just want to find the best, yet simplest way to do things.

I wanted to bring this debate to the forum that I am having with a friend who is also an investor.

The debate, if an owner has several llcs ( all single member) for holding rentals, and one additional LLC acting as manager. All llcs done on the owners tax return being single member. Does each LLC need its own separate checking account and thus each properties' tenants pay the LLC that owns their house? Or is it ok for the manager LLC (for purpose of one name for marketing, maintenance calls etc) to collect all rents, pay bills and just have that one checking acct skipping the back and forth payments from LLC to LLC?
I have been doing the first scenario as I started with one LLC and have added more as I've bought more properties, for liability protection. As I've added I've opened a new checking acct an kept each separate. My friend disagrees and says I'm dong too much work and an have one checking acct for the management LLC only....which is right? Debate please

I am hoping to get some suggestions on lenders/financing styles I should seek out and also overall deal strategy with a potential mixed use commercial building. Also overall strategy on how would you go about financing one like this?

Deal specs - existing commercial building in great mixed use area, retail first floor, 2-3floors apts above. Potential to buy, tear down. This has been occuring with neighboring buildings since a zoning change a few years ago, all others are fully rented and successful, so demand is great. Purchase $1Mil, Construction estimate $1Mil - $1.5Mil, so total cost $2-2.5Mil. Excellent cash flow above expenses that would push me over my goal for annual income from "passive" investments so it is a big deal I want to do and willing to invest in heavily. but also want to have the best strategy and know who to go look for about financing it.

Assuming a std 25% down requirement, I can afford it, but would be maxing out our investment capital (thus no new projects for a while or not with cash anyway, I do an occasional rehab flip here and there). And we have excellent personal credit.

So what are my best options to finance this, and who should I seek out? Any difference in funding/who to talk to, in the fact that we would be doing construction initially? Should I asume a 25% down payment, or other options to not sink so much capital into this one asset (besides a partner)? Most of my financing experience has been traditional non-owner occupied 30yr fixed loans, so I haven't done a true commercial real estate loan before.

Overall deal strategy in relation to finance suggestions? I currently own 4, 1-2 family rentals and 1 small 2-unit office building; with the addition of this one large asset I could reach my annual cash flow goals as noted. That said I also would love to not sink so much cash into one asset where it will be tied up, both to allow for another investment down the line, and for general security of having more cash accessible. Thoughts on strategies?
Thank you, I always appreciate everyone's insight and help!

I am hoping to get some suggestions on lenders/financing styles I should seek out and also overall deal strategy with a potential mixed use commercial building. Also overall strategy on how would you go about financing one like this?

Deal specs - existing commercial building has 2 floor retail, great long term tenant who wants to stay. Potential to buy, tear down (or build up upon existing) to add 3 floors of apartments(8-10 units of 3 bedroom/2bth). This has been occuring with neighboring buildings since a zoning change a few years ago, all others are fully rented and successful, so demand is great. Purchase $1Mil, Construction estimate $1Mil - $1.5Mil, so total cost $2-2.5Mil. Excellent cash flow above expenses that would push me over my goal for annual income from "passive" investments so it is a big deal I want to do and willing to invest in heavily, but also want to have the best strategy and know who to go look for about financing it.

Assuming a std 25% down requirement, I can afford it, but would be maxing out our investment capital (thus no new projects for a while or not with cash anyway, I do an occasional rehab flip here and there). And we have excellent personal credit.

So what are my best options to finance this, and who should I seek out? Any difference in funding/who to talk to, in the fact that we would be doing construction initially? Should I asume a 25% down payment, or other options to not sink so much capital into this one asset (besides a partner)? Most of my financing experience has been traditional non-owner occupied 30yr fixed loans, so I haven't done a true commercial real estate loan before.

Overall deal strategy in relation to finance suggestions? I currently own 4, 1-2 family rentals and 1 small 2-unit office building; with the addition of this one large asset I could reach my annual cash flow goals as noted. That said I also would love to not sink so much cash into one asset where it will be tied up, both to allow for another investment down the line, and for general security of having more cash accessible. Thoughts on strategies?
Thank you, I always appreciate everyone's insight and help!

Justin G.

I am hoping to get some suggestions on lenders/financing styles I should seek out and also overall deal strategy with a potential mixed use commercial building. Also overall strategy on how would you go about financing one like this?

Deal specs - existing commercial building has 2 floor retail, great long term tenant who wants to stay. Potential to buy, tear down (or build up upon existing) to add 3 floors of apartments(8-10 units of 3 bedroom/2bth). This has been occuring with neighboring buildings since a zoning change a few years ago, all others are fully rented and successful, so demand is great. Purchase $1Mil, Construction estimate $1Mil - $1.5Mil, so total cost $2-2.5Mil. Excellent cash flow above expenses that would push me over my goal for annual income from "passive" investments so it is a big deal I want to do and willing to invest in heavily, but also want to have the best strategy and know who to go look for about financing it.

Assuming a std 25% down requirement, I can afford it, but would be maxing out our investment capital (thus no new projects for a while or not with cash anyway, I do an occasional rehab flip here and there). And we have excellent personal credit.

So what are my best options to finance this, and who should I seek out? Any difference in funding/who to talk to, in the fact that we would be doing construction initially? Should I asume a 25% down payment, or other options to not sink so much capital into this one asset (besides a partner)? Most of my financing experience has been traditional non-owner occupied 30yr fixed loans, so I haven't done a true commercial real estate loan before.

Overall deal strategy in relation to finance suggestions? I currently own 4, 1-2 family rentals and 1 small 2-unit office building; with the addition of this one large asset I could reach my annual cash flow goals as noted. That said I also would love to not sink so much cash into one asset where it will be tied up, both to allow for another investment down the line, and for general security of having more cash accessible. Thoughts on strategies?
Thank you, I always appreciate everyone's insight and help!

Craig - did you use a national company from the web to be your registered agent or a local attorney, or something else? Could you share who you use and experience? I found the "big 4" national companies online all about $100/yr, but unsure if they charge more to foward mail they receive from the state, etc.
Thanks,

Will, I really appreciate the insight from your experience with a pre-completion sign working, I see the benefits. Any issues ever with break ins though by flagging that it's empty? Or us the dumpster outside, etc doing that anyway so who cares. Do you do a security system of anything else to discourage theft/vandals?
Thanks

Thank you all for the quick response. I have to say I agree with the disadvantages more than the advantages. The gentleman who said this was such a success for him was a 15 year expereinced investor but he could have been talking about a specific neighborhood where it works well with less downside. I agree though the risks likely way outway the benefit. Thank you!