All Forum Posts by: Chris Eaker

When a new buyer assumes a Freddie Mac loan on an apartment complex, do the current reserves transfer with the loan to the new buyer/borrower? If so, is it automatic, or does the buyer need to negotiate that into the purchase contract?

I've got a 152-unit apartment under contract and it has an old tennis court that's in pretty bad disrepair. I don't think it's worth renovating, as tennis is a sport that so few people play. What are some creative ideas for that space? They can be amenities that generate income or not. Some ideas I thought of was a dog park, community garden, and grilling/picnic area. What would you do with it if you had to do something with it? 

@Zachary Clevenger

Good for you for educating yourself. I started educating myself in the multifamily area over a year ago, and I now have my first property under signed LOI. It's been a long and very rewarding road so far. I recommend Rod Khleif's book How to Create Lifetime Cash Flow Through Multifamily Properties. You can download it for free. If you haven't already, learn about syndication. This will be your key to getting into big multifamily properties. You may also want to join up with a coach. There are some good ones , such as Joe Fairless, Michael Blank, Brad Sumrok, and Rod Khleif. Let me know if I can help.

It's apparently more popular in England, but I've heard the term more recently here, too.

https://trends.google.com/trends/explore?date=all&q=%22party%20wall%22

@Shal Patel did you do a final walk through the day you closed? This is always a good idea.

@Tan Mehedi

I don't think it's necessarily illegal, but the lender of the $50k note wouldn't be very happy about it and could call the loan due if they find out. It all depends on the lender though. They might be OK with it as long as it is disclosed and the deed doesn't change hands, as is the case in a land contract. I have a lender who has told me I can do that on some houses I own that they loaned on as long as I don't transfer the deed. 

@Robert Howard it looks pretty good to me. As is, it's a great ROI even with the 10-year mortgage and you believe you can raise rents to get more cash flow. I would look for a mortgage broker who can shop more lenders for you.

@Daniel Bryant

Daniel, we'd love to have you in Knoxville, Tennessee. Cost of living is definitely less than Queens, the weather is nice, the scenery is beautiful (you can see the Great Smokey Mountains), and Tennessee doesn't have state income tax. The real estate market is great, too.

@James Wilcox the more the merrier.