All Forum Posts by: Account Closed

Ken,

Thanks for the good information. Do you think it would be advantageous to put together information on my property for the bank? Like a market analysis or an explanation on the ROI? Anything extra I can bring to the bank to help secure the loan? Thanks again Ken

I have 2 outdated storefronts that need to be upgraded and potentially combined into one store.

I don’t have an official estimate yet but im assuming it’ll be in the ballpark of 30K-60K.

My mortgage is private and I'd rather not leverage the property.

What are my options for financing?

What terms will I have to meet?

Does there need to be a contract in place with a new tenant before a lender will consider?

Thanks in advance.

I didn't read the entire thread but, If you decide to repair yourself, there are typically 2 heating elements per tank, a top and bottom element. Best bet is to replace both at once. If you have trouble unscrewing them use a wash cloth soaked in white vinegar and wrap it around the element for 24hrs. Should unscrew easily after. Also, based on the age of the tank, the anode rod could be gone. It'd be a good idea to check and replace that as well. 

@Douglas Larson, 

Apologize for not responding sooner,

My hard drive containing most of the photos crashed awhile ago. Here are a few screen shots I captured from video. I'll post the financials soon.

What cities or towns are you interested in? 

Biggest problem for investing in NY are the property taxes, they're ridiculously high. 

In many of the small cities you can find interesting, historic buildings for cheap that are usually already split up into apartments. A lot of places require a decent amount of money to fix up though. Lots of colleges, sprawling suburbs w potential flips, single rentals, ect. 

This link is interesting.

http://www.mtanlaw.com/landlord-tenant/is-new-york-a-landlord-friendly-or-tenant-friendly-state/

I’m about 3 years late on writing this success story but better late than never.

Purchased a mixed-use property consisting of two occupied storefronts, an occupied 1,200 sq/ft 1 bedroom apartment and a 2,000 sq/ft unoccupied warehouse.

Starting out, the warehouse was my main concern. It wasn’t generating any money and had little potential to do so as it stood. The space was gutted. It consisted of an un-insulated roof, roof rafters, exposed 12’ block masonry walls, concrete floor, and centralized load bearing pillars. The building was basically an empty, masonry 2,000 sq/ft rectangle. This made a potential rehab a bit cheaper and easier. The fact that there wasn’t a need to gut or demo anything freed me up from potential lead or asbestos mitigation.

I started out by contacting my commercial RE agent to put the space up for rent. We both agreed the best bet would be to push the unit in its current condition, hoping to gain a tenant who would invest their own money into it for a lower monthly rent. While on the other hand, in the event that a renter was looking to spend top dollar per month and sign a favorable lease we would include an option for a “fit-up” paid for and contracted by me.

About a month and a half later a solid possible tenant came along. They loved the space and location but required the second option, a full remodel by me. After calculating the cost of fit up versus the money they were willing to spend on rent/better lease agreement it made sense to go ahead with the build. It was going to pay for itself within 3 years, not to mention adding value to my otherwise worthless unit.

After unsuccessfully taping into equity from another building I own, I was fortunate enough to use two private money investors and contractor financing to cover the cost of material, labor, and permits.

I opted to frame the interior and run electrical/ lighting myself. The HVAC system, spray foam insulation, and sheetrock were outsourced to contractors, two of whom financed the work.

To make a long story short, the build took about 2 months to complete. The once empty, worthless space now pays for my entire annual tax bill and ¾ of my mortgage.

It was a 100% success and some of the best times I’ve had!

In the early stages of purchasing a 3family building that needs approximately $50k in construction. I don't plan on pulling money out of my existing properties for this so ive been trying to figure out ways to finance the work. I'd personally be doing the framing, floors, sheetrock, HVAC, among other things. Id contract out electrical, plumbing, and foam insulation. The 203k seems pretty appealing for what I need except for the fact that i believe it requires me to have a licensed contractor lined up as project manager. This takes me out of the equation and will cost me twice as much for the rehab making this a nonsense deal. Any way I can declare myself the GC?

Also, can the 203k loan be applied to a property already owned? or does it require the purchase of the property as well? I couldn't get a clear answer on that after researching the loan.

Any other ideas for financing would be appreciated too. Thanks.

Thanks for the quick replies. Fred, I like your approach and I think we're pretty much on the same page here. Any other general suggestions? Articles you've found useful in the past? Choosing a type of lease? Thanks again guys

I'm waiting to close on a new property. 2 occupied storefronts, one bedroom, and a "bare-bones," unoccupied storefront currently being used as a shop/warehouse. I'm new to non-residential so, my question to all the experienced investors out there is where do I draw the financial line between me and the potential renter? I need to rent this warehouse. Is it common for renters to put up 100% into creating their optimal space? I'm sure the obvious answer is "it depends on the terms and the business." but, I'd like to know what the usual agreement is. The way I'm thinking is I'll put the basics into it. Drop ceiling, lighting, sheetrock, resurfacing the floor, commercial style doors, better heating system, ect and leave the rest up to the renter. I like to think of it as constructing the frame, stretching the canvas and letting them buy the paint and do the artistic work on a nice, clean, new, canvas. I'm trying to think outside of the residential thought process and accept the freedom of commercial ownership. Any thoughts will be greatly appreciated.