All Forum Posts by: Nicholas Weckstein

@Scott Mac by units, in the second part of that paragraph. I meant the apartments LOL!

@Scott Mac maybe just the units themselves are bad. Or old and outdated. I just think they look tacky. Or just plain bad. Rents being under market now makes a bit more sense. Although the units are pretty nice.

@Sean McKenna I totally agree. This building I'm implementing a 5 year strategy. The current rents are under market. The units are in decent shape though. Over 5 years with the principle pay down and money we have budgeted for CapEx put aside every month. We figure since it's fully rented. No need to rock the boat (it cash flows) let it do what it's doing. In 5 years time we will convert over the building from that heating source to a more "upscale" looking heating system. By then we plan on the currents tenants having fully turned over. Each unit is under market rent by roughly $75.00. The owner is also paying un necessary utilities because of diverted CapEx costs. We have budgeted this from day one which will rid the P&L of that monthly expense. All and all I think we stand to do well. It's in an area that has been seeing some awesome growth.

So this property I’m looking at has gas heating for the apartments. There are literally gas space heaters mounted to the walls that require you to light them much like you would a stove. Gas lines run up through the ceilings. Ive never seem this?? Can it be converted easy to something different ??

@Andrew Cobb a strategy I used when I was younger to build my personal credit was using what’s known as a passbook loan. I think it would work for a business as well.

Essentially your lending yourself money from the bank and using that same amount of money to be held as collateral with the bank.

Take 10k go into bank with 5k. Hi I’d like to get secured line of credit for my business. Here’s 5k collateral. They write you a check for 5k and you use that money to pay back the same money. As you pay them back the money you owe them. They release the collateral back to you. You wind up paying a little bit of interest over like 6-12 months. But it helps your credit. I did it with 20k over 6 months.

@Michael Chang you would have many options. If it was 2-4 units you could put 25% and buy as an investment property. But you wouldn't want that because you expressed interest in a house for you to live in. So you could house hack. And put down as little as 3.5% (I wouldn't recommend this) -20% to avoid PMI. But investment property expect no less then 20% but more likely 25%. Unless you plan on Owner occupying. As long as your DTI ratio doesn't exceed 36-45% with the new debt you should be just fine. Also would help if your credit was 725+ to get the best rates.

Good luck

@Chris K. I asked the underwriter this question in an email so I guess I will find out some time tomorow. Submitting the full package on both of these contracts tomorow.

They all seem pretty sure they can get me financing. I think so to as I have spent a long time calling around and asking about how they underwrite properties. So I use that formula when making offers. Just found a great local lender who can get me super low rates on multi family business financing. So I’m happy with that.

@Stephanie P. That’s what I’m looking for. Something with no income verification and something that will use projected rents. I mean if they do income verification that’s fine. Between the buildings and my partners w-2 income we’d be good.

@Stephanie P. By conventional I meant commercial. As in longer term financing as apposed to hard money. Well deals get funded all the time in the Wilkes barre Scranton area. The numbers on both properties I have under contract are strong and work under pro forms underwriting standards.....now just have to hope I can put through two transactions at once! Wish me luck!

@Zachary Paschke hey friend much appreciated ! Thank you!