All Forum Posts by: Christian Ferreira

Cool! I have a few locally to that one. What's your numbers looking like for COC?

Was it fully funded through a 1031?

Hey Alex,

I also invest in Fitchburg. Here is my advice.

Change the tenants over to pay their own electricity, don’t reduce the monthly rent. I would assume it’s already below market as almost half fitchburg is. 

4 people in a 1 bedroom doesn’t sound like it meets the sanitary code but that’s a different story.

call MassSave which is the energy assessment auditing company for until. They will come out and give you very good prices on blown in insulation and ensuring the property is air tight. They will also give you a 0% interest loan for a new heating system with a huge rebate. 

I would check if any of the tenants are using electric space heaters, they will jack up your electric bill. All my leases prohibit them because of fire hazard and the electricity cost.

PS - water/sewer is ridiculously high in fitchburg. My duplex is about 120$ a month and my fourplex is about 200-250$ a month.

@Sam B. Sent you a DM

@Steve Morris I am currently waiting for the seller to send me the income statement so I can get exact numbers. The leases are not NNN, the set rate includes snow removal, landscaping, water, taxes, and insurance. Tenants currently only pay Rent and Utilities (Gas + Electric) Question on NNN, what is the advantages to using a NNN lease rather then just increasing the regular lease to cover the added expenses?

Good Morning Biggerpockets!

I am fairly experienced in residential multifamily investing, done a few flips, own 10 rentals, 4 buildings. Recently through networking I was offered a off market 15 unit strip mall that has 8 retail storefront on level 1, and 6 office spaces on level 2. It also has a detached restaurant. At first I was thinking this is over my head and I was going to pass it up, but I told the seller I would run some numbers and let me know. He is selling because he wants to 1031 and needs the money for a 30 million dollar new construction project. 

The numbers below are not exact but a basic estimate off the information he quickly gave me, but from a quick glance it looks like a half way decent deal. 

Asking Price: $2,350,000

Retail storefronts rent: $1250-1800 monthly X 8

Office rents: $1200 monthly X 6

Restaurant: $4200 monthly

Taxes: $24,000 yearly

Gas and Electric Separated. 

Town Water and Sewer.

Built in 1987

I am looking for some expert advice about how I should proceed... Do you think I should find some private money to fund the down payment? Do you think I should find a partner for the entire deal... Where I manage and they purchase or pay the down payment? 

Thanks!

@Jesse Cote there turning the green meadow golf course into  a 200,000 sq for Amazon distribution center

@Richard Dale-Mesaros

Great information, definitely going to go and try to sweet talk the tax collectors! Thank you! 

(I am a big amazon supporter, I am hoping it brings a lot of new jobs and cleans up some of the surrounding areas multifamily districts such as leading into downtown Nashua)

Good Morning Everyone, 

This post is going to be specifically requesting help from individuals located around New Hampshire (NH) who have experience using the County Deeds website to search for pre-foreclosures. Im referring to NHdeeds.org where you can select a county and search the property records, however in NH you cant exactly search the property records only a business or persons records using the "Search County Records - AVA Search". 

Does anyone know how to search just based on a property address?

Does anyone know how to search for pre-foreclosures? generally in other states you can do a search for "Affidavit + Mortgage" and it will show properties who are marked for pre-foreclosure sale, however in NH the AVA search doesn't work quite as well. It shows hundred of misc. records and cannot be sorted. 

Is NH one of the states which requires you to go into the County clerks office and request the list?

Thanks for any feedback!

Good Morning Everyone! 

I want to start by saying I have never done a subject to deal, I have done some research and am currently digging even deeper as I think this may be a good strategy for a deal I am working on. 

I have found a deal that is currently off-market (was on the market but taken down, still under contract with the selling agent). The property is a legal 2-family but is currently being used as a 3-family, making it almost impossible to finance. I had the seller verbally agree at a price of $205,000 cash. I was going to bring in a private investor who was going to loan me $100,000 and I was going to pay the other $105,000. Unfortunately, the investor pulled out because he thought it was "too much work". 

I have been thinking for a few days now and I think a subject to scenario may work out well. Here are some details about the property. 

Asking Price: $205,000
ARV: $350,000
Repair Costs: $50,000
Current Loan Owed: $150,000

My ideal plan would be to take over the loan payment, pay them the equity, do the rehab and convert it back to a legal 2-family, and then refinance it into my name for a long term rental pulling out my initial (or at least a large chunk) of my investment. Somewhat of a Subject-To / BRRRR.

What advice can a experienced subject to investor share? Where do you think I might run into problems? Would the sellers agent still get a commission during a subject to deal, if they are technically in a contract with the seller?

Thank you!

@Whitney Hutten by HLM do you mean HML? In this case I am paying cash for the property. From my research you are 100% right about the title seasoning. The way around it from what I have found it called Delayed Financing which allows you to immediately put a mortgage on the property but only for the amount you purchased it for, if the appraisal comes back favorable at 75% LTV for SFH or 70% LTV for MF.

From my findings, it seem that the seasoning requirement is 6 months for a cash out refi based on LTV. Prior to 6 months you can do whats called delayed financing which will give you only 100% of the purchase price as long as the appraisal comes back with over 75% LTV. For example, if I pay 200k for purchase with cash, and then get it appraised and its worth 250k, they will give me the 200k as the maximum loan amount.

The seasoning is not tied to the mortgage but to the title. 

Some banks that offer portfolio loans may not require the seasoning period. 

In my scenario this will work fine because I am only borrowing half of the purchase price from a private lender. I will fund the other half as well as rehab and just do a large cash-out refi or HELOC down the road. Initially I just wanted to ensure I was going to be able to pay back my private investor timely.