All Forum Posts by: Tim Czarkowski

Justin Silverio I'm not sure if I read your first post correctly. Did you say your average purchase price was $0? If it is I gotta know what the deal is, lol.

I have purchased several buildings with tenants already in place. It is standard to have them inspected as you would any other property. As long as the tenants are given notice it's not a problem. The one building had a tenant who was not too eager to let us in but the lease states as long as they are given 24hr notice the owner has a right to access. They ended up relenting fairly easily. I think the may have been growing pot or something as the utilities dropped sharply after they moved out. lol

Yes I realize that. In fact that is exactly what I stated above. Unfortunately I heard from him recently and he had to have surgery and is not feeling too good and so is not looking for real estate anytime soon. He did say he would send me referrals so I guess it's not all bad. Sounded like it was a pretty serious surgery but as usual he wasn't real open. I hope it turns out alright for him.

Gabriel Fernandez
Yes it is possible. The easiest way is to get the prior owners approval to negotiate it. That would be like any other short sale. You can also apparently do it without their approval but finding someone who understands the situation is willing to work it is not easy.

If I had a large amount of money and didn't need immediate cash flow I would be interested in what Joel Owens says, NNN properties or apartment buildings. If you don't need the cash flow you could go with something like a 10 yr full amortizing loan and have some great cash flow and equity at the end of the term.

I don't care for the commercial loan terms right now. They generally won't fix your rate for more than 7 to 10 years and are not fully amortizing which could leave you in a very bad position depending on what the loan market looks like when you have your balloon payment. I personally wouldn't accept a variable loan unless I could handle the worst case scenario easily. What happens to your cash flow when your loan at 4% today goes to 10% in 5 or 8 years. For most people it would end in foreclosure. I stay away from anything that is not fixed rate or fully amortizing for the most part.

With higher end properties your likely to need to pay cash or put a substantial down payment in order have cash flow. I personally like to purchase small multifamily (duplex, triplex, or quads) with a regular 30 yr amortizing loan that have strong cashflow and are in a very nice neighborhood. Now that option may not exist where you are. We have a historic neighborhood here that has gentrified and provides these opportunities. You don't tend to see those type of properties in neighborhoods built after the 50's or so because of the birth of the 30 yr mortgage.

I think in general everyone should be leveraged up some. I'm at maybe 50% which allows a lot of protection and still get some benefits of the leverage. You can buy twice the amount of properties that way.

Can anyone recommend a good resource for scripts? Preferably online and preferably free. I did a quick Google search and didn't come up with anything to good, it was mostly people selling coaching. I'm sure there must be a decent web resource out there somewhere.

Well that was a no go. He just said he uses a local title company with whom he does a lot of business. Sounds like you have to find someone who is willing to take on something new. I imagine it's not a real common thing so there are probably very few people with experience. I'll have to start looking myself fairly soon. If I have any success I'll let you know.

I didn't get the name or number for who he was using, I assumed any negotiator would handle it. I guess that's what I get for assuming. I'll send him an email and see if he's willing to share that with me. He works the south Florida area so I assume that's where the negotiator is located but of course I might be wrong. I would assume that they could handle one in California just as well as Florida. I need to take it easy on this assuming, I'll let you know what I find out.

I spoke with someone a couple days ago that handles a lot of HOA liens and he said they sometimes work with a short sale negotiator to get a reduced payoff. The best part about it was he said they don't require the previous owners consent to handle it. This may be a good option as you'll have someone who has a lot of experience handling short sales. Please let us know how things are going.

It certainly seems easier to me to buy them occupied as long as they are paying. You don't have to worry about leasing it out right away then. Plus you get the rent money at closing which can reduce your out of pocket for closing.

Vincent D. I agree, if the tenant is paying don't worry about the rehab.