All Forum Posts by: Christopher Juntura

Hi everyone, im looking to invest into the upstate NY area but looking to buy a duplex or triplex unit and rent them to section 8 tenants but I do not know how to do this ? Does anyone on here have any advice on how to approach this ?

I would have a conversation with the housing association. They are the main players in referrals and they will have the details about what they are looking for. In my experience it's really no different than non section 8, expect they have vouchers. My advice... since there are different varieties of section 8 renters, vet them like any other tenant but also visit where they currently live, that will give you an idea on how well they'll take care of your property.

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Upstate New York, New York

Quote from @Joshua Mumford:

I’m Joshua, 25 years old and local to Raleigh since July ‘20. I cook professionally at one of the best restaurants in the area and have been doing so since November ‘20.

I've learned looking for my second rental property that lenders don't care about what you have, but what you make, and I'm seeking to efficiently partner my investment capital with other local RE investors to acquire SFH/MF properties that my income as a cook prevents me from doing so without paying entirely cash.

With one fully paid off Nashville property cash flowing I’m more concerned about positioning myself well for appreciation and building a portfolio in the area. Additionally would love to put in some sweat equity with more experienced guidance.

I’m easy going and passionately committed to growing as an investor—if you’re not familiar with my line of work, I’m efficient with time and project management, especially under pressure.

Feel free to reach out, and I would especially love to hear from anyone in construction and development as well.

I was given advice that making cashflow day 1 should be a priority. Development doesn't cashflow day 1...or even day 30. That being said it's not impossible.

1st. DSCR loans don't really care how much you make but what the property makes.

2nd. House hack if possible

3rd. Know your numbers and it won't matter what you do and how much you make, if its a good deal you can get financing.

4th. This is probably one of the important things is network. I was a chef in a past life and as you might know if you needed more money or another job you know a network of places togo. Same goes with RE, the more people you know / connect with / build a relationship with the easier financing gets.

I've done a couple devopment / construction and my top tips I've gotten / learned.

Never give anyone 100% of the funding, even banks don't do it. They break it down into 4 parts and as they complete each level of construction they release another section of funding.

When selecting a builder check their references.

Work with an inspector, they'll make sure that the work is done right.

Hope this helps.

1 Vote

Raleigh, North Carolina

Quote from @Leila Perez:

Hello, we are getting involved with a money partner who will purchase the property in cash, then we will get a loan together to start building some duplexes in phases. We will have the ability to buy him out at any point. We (my husband and myself) only needed his funds to secure the property, but technically we could get the construction loan on our own. We are considering making a written agreement in which any time we either cash-out refi or receive profit from rent income, the funds will all go to him until his initial investment is paid back (the land cost), then everything after that is split 50/50. We will have 50/50 split ownership in the property. Does it matter if the property is legally owned by his LLC if we have a JV agreement between us? Or do we need to start a new LLC for our partnership and have the name of the LLC on the property title? This is our first time working with a private lender and doing new construction, so we see the value of working with someone who has experience to lessen our risk. Otherwise we would want to buy the land back from him immediately upon securing a construction loan on our own. Do you have any advice about this situation?

Not an attorney but a buyout clause is something you should probably include in your agreement, as well as a specific operating agreement.

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Looking to form a joint venture with a property owner. The property has no mortgage and they are willing to do a joint venture with me and establish a buy out clause when its feasible.

the plan.

has a house on the property but buildable lot already approved for 4 additional units.

I'd use the property as collateral for the build on a construction loan.

looking to get some advice from structuring the joint venture, and I'm also working with a lawyer.

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Quote from @Forester Tesche:

Hi Everyone!

My friend is hoping to purchase a shop on some property for his business. Because he is 1099 he can't qualify for traditional financing. Is there any way that he could purchase the property with a DSCR loan and have his business rent the space back from him to satisfy the requirement?

Thanks

-Forester Tesche

Try posting this on the financing forum, you'll get a better answer. But from my knowledge the business will need to provide financials to see if it'll qualify 1.2 is usually a good ratio. Is seller financing an option? Terms are better when you can set them obviously you'll have to run it by a professional (lawyer).

Usually dscr loans work with existing tenants but not 100%.

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I agree... the relationship seems pretty bad if you're here talking about it. Hard money is a bad idea here especially when there's no cash flow. Usually construction loans are best cause you'll only need 20% of the build cost (can you the land as collateral if its paid off) and they'll make sure the work is getting done to protect their investment.

what due diligence have you done on the builder?

for me I never give anyone 100% of the funds. Usually break it down in parts. Get the permits, I'll pay for fees directly (survey, engineers etc.), then break it into 25% sections where they don't get any more until that part is done. This will prevent you from not having your stuff done the last 25% is given at completion where you're happy and the inspectors are too. This keeps them honest cause his crew will need to get paid and they'll need to finish the section in order to get that.

if the builder wants 100% of the build find another one.

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Quote from @Elmer Wayne Fisher:

Current tenant signed a one year rental lease on the single family property I own. I feel like I can create more cash flow by putting the house on AirB&B after the lease agreement runs out.
Any suggestions on what may be the best way to address this possibility to the tenant and is it even a good idea to release a loyal long term renter that has never paid late?

What are your goals?

Airbnb is a job, so you'll be pulled into doing more. Something that maybe something in the middle, midterm renting. Honestly everything really depends on your goals, so if you don't have them, then that's where you need to start.

1 Vote

Philadelphia, Pennsylvania

Quote from @Darrin Carey:

As a private lender, I'm suddenly getting a lot of requests for three things that concern me.

1. Lending the Downpayment (behind another hard money lender)
2. Lending all the borrowers closing costs
3. Lending funds for putting up earnest money

Personally, I think putting up money for those items as a lender is EXTREMELY HIGH RISK. Out of 500+ loans I've done, only a very few have had problems.
Every one that had a problem had one common feature, the borrower had little to none of their own money in the deal. (Early ones, I didn't know better. The couple recent ones, the borrowers lied about it, and I found out later. Those borrowers made the forever banned list. Not because the deal went bad, but because they lied about the source of funds, and ghosted everyone went the rehab got hard)

Is there someone out there teaching this as a strategy to borrowers and potential lenders?
Are people really making these loans? AND getting paid back?
Am I missing something here?

Darrin Carey

If I'm being honest here, I've seen these people who don't put any money down and it does make sense on how the do it.

they find a deal usually something that has equity (building needing work) or under managed.

they run the numbers to see if the deal makes sense with the loan(s). Refi and pay out the loans, buy out any partners.

usually the jv partners or other people's money comes from their network.

I've done 2 deals this way so it is possible, but the numbers have to make sense and communication is a must and expectations should be clear.

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Quote from @Chris Seveney:

@Christopher Juntura

What's the NOI?

As is the NOI is 152k

with raising the rent $100 below market rate that jumps up to 227k

but there is a storage facility that can be turned into an additional 20 units with town already on board. So that number could be higher in the near future.

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Quote from @Nathan Gesner:

Quote from @Christopher Juntura:

I guess you can approach them with an offer to purchase their business. If they don't want to sell and don't want to leave, then you can wait until their lease expires.

It sounds like a conversation you should have had before purchasing the property, but maybe it will still work out.

They are a tenant at will who is also a bad tenant and I don't want them on the property.

really looking for advice from the group and really didn't expect this level of judgment and criticism from this forum.

I think I'll just consult with my lawyers instead of getting advice from BP members on the topic.

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All Forum Posts by: Christopher Juntura

Christopher Juntura has started 8 posts and replied 30 times.

Post: How to make a multi family investment property for section 8 tentants

Post: Seeking RDU Investment Partner(s) & Guidance

Post: Does it matter whose name is on the title of a property in a JV?

Post: Joint venture contract

Post: DSCR loan for personal business

Post: New Construction Situation Looking for Advice

Post: Releasing tenant to put the house on AirB&B

Post: Borrowing Downpayment, closing costs, and earnest money

Post: Advice on raising capital for 22 unit

Post: Commercial tenant eviction