All Forum Posts by: Chris Branca

So our plan was always to just throw the money right back in at something bigger & better or just add additional property.

I would love to do a 1031 exchange, but my thoughts was underwriting would be a little bit tougher on a new buy as we are back to square one with a pile of cash and no NOI (since sale of property), vs doing a cash-out refinance on existing and then going thru underwriting with 1 cash-flowing property already under my belt.

Ah, I see. so I can't 1031 with a cash-out refinance, that only works on a sale? 

I just got an email from a commercial realty group providing me with an NOI very close to what I am currently operating at and their suggested valuation of my property. I was surprised when I saw their valuation at almost double what I paid for it 3 years ago, they are pitching this at a 5.5% cap rate when we bought it at like 9-10%. While its a great sales technique on the agents side, If it does command that value, then why wouldn't I just do a cash out refinance and keep this one in the portfolio vs a full on sale? Any noticeable pros/cons?

Why don't you just pick up the phone and ask them what their intentions are behind paying the full year upfront, this way they don't have time to cook up a story about it and you don't have to wonder about the what ifs.

If they have two years legitimate tax returns and the income is verifiable than I personally don't see a big deal. Earn interest on the unused portion while the tenant is in place.

Now if they came along with the years rent in cash and had absolutely nothing verifiable on paper it would be a different story.

In luxury rentals or competitive metro markets this isn't unusual and in some situations a leverage tactic.

good luck!

Good Morning Everybody!

I am a commercial (mixed-use/residential) and residential real estate investor in the Middlesex County, CT area. I am actively scouting deals up to the 1.3M range. I would consider deals outside the Middlesex County area location dependent. We are very familiar with the CT area.

These deals can be:

Pre-Foreclosure/Rehab Properties

Mixed-Used/Residential Commercial (5+ Unit)

Turnkey Multi-Family

I am looking to expand my agent and wholesaler network in this area and build a working relationship as most of my past deals have been one and done with agents.

Please reach out if it seems like a fit! Heres to a healthy and prosperous 2019!

Chris

Hi All!

I have my first commercial property under contract, and we are getting closer to a close date, however things still keep "popping" up last minute on the bank end. More Forms, Environmental Inspections, etc. Right now, I have been under contract with this property since May of 2018.

My questions are as follows:

1 - Is 3-6 Months a typical timeline to get financing in place/closing date for a commercial property from a bank, or am I working with a not-so-great lender?

2 - Is it common for the RE agent representing the buyer/seller to be anxious and annoying during this process when continuing to request extensions?

3 - Is there a process involved if money has been spent and seller does not want to renew purchase contract?

Trying to find the lay of the land here and know who to cut out of the picture for the next purchase.

Chris

thanks for those resources.

indexed to FHLB.

This broker is basically telling me the rate isn't going to matter regardless of if we are financing 70% or 80% LTV.

Financials are very strong (not sure if this matters or not).

This morning he sent over his "Loan Broker Agreement" and in it had the index value terms, which made me raise an eyebrow.

I have never done a residential mortgage, let alone commercial - so that is why I am asking.

Hi -

I am new to real estate investing and in the middle of purchasing my first commercial property through a broker. Is it common for commercial properties to have adjustable rate mortgages as well as prepay penalties?

If so, what is the average margin? they are quoting me 2.5%.

thanks

thanks!

Jeffrey - I sent a connection notice.

Chris - I will plan on being there this Thurs.

Hey Everybody! I added one of these posts in the marketplace, but unsure if that was more of a "broad" reach to the entire community vs one of these state specific targeted sub-forums, so excuse me if this is the wrong area for posting!

I am beginning my real estate investing journey after sitting on the sidelines and debating about it for some time. I have (almost) been a life long resident of Connecticut, most familiar with the New Haven County area and currently residing in Stamford.

I am currently in the market for between 1-3, multi-family properties, depending upon the opportunity available and price. I am for the most part looking for these properties to be turnkey in the sense of getting them filled with suitable renters.

The areas that interest me most are Shelton, Derby, Ansonia, Seymour, etc - densely populated areas along the route 8 corridor, but not that close to Waterbury.

With that said, I am new and have virtually no real estate agent connections. So I am looking to establish a relationship with someone who specializes in the area of multi family and potentially the region mentioned to start building on a relationship!

Thanks and looking forward to getting started!