All Forum Posts by: Clenvic Cayme

Hey Guys

So i am looking to purchase a home in the state of NJ for around $220,000 but there is currently a tenant that is on a month to month lease. The rent shes paying is 1900. It hasnt been increased since she has lived there close to 6 years ago. Conservative rental values is around at least 2300 . When we looked at the house the tenants seemed very nice and accommodating. We told the realtor that if they wanted to stay we wouldnt mind but we would be increasing rents to 2100 (seller has stated they never had an issue with the tenant, so id gladly rent under market price for a good tenant).

We haven't written a contract but they verbally accepted the offer. When we asked the other realtor if the tenants wanted to stay they replied with "They will stay on but current owner will not discuss proposed increase with current tenant". So im assuming there is 2 options. 1) Ask for them to deliver the house vacant or 2) Is it possible for me to have them sign a yearly lease agreement with me, prior to the closing? (Even though technically i didnt own the house)

Also, should i be asking for a rental estoppel? This is my first time buying a home with a tenant so im not sure how this process works entirely. Thanks

Hey Guys,

Me and my brother are currently looking at this small strip mall that is approximately 350k, yearly gross income is around 54k and the expenses are about 11k but it does need repairs. It has 4 tenants: an MMA gym, art studio, beauty supply shop and recently moved in hair saloon (currently renovating still). The owner is willing to do sellers financing but he wants 50% down, we have enough to cover it but i dont want to use up most of the money just in case of vacancy and repairs.

I have been looking for financing from commercial lenders and most of them offer 25% down but arent willing to do a sellers carry/note. I was hoping to do a sellers carry for the down payment: So it would look like 75% mortgage, 10% down from me, and 15% from the owner (which would be a secondary loan). The issue is all the banks that i have talked to wont allow this. Is it possible/legal for me to put down 25% and close on the property. Once i have the property the seller will give me the 15% and have a secondary loan on the strip mall as collateral?

Another thing i was wondering was the owner stated that these guys paid cash. What should i ask for from the Owner to know that they are actually paying their rent, should i just speak to the tenants individually?

This would be my first commercial investment so any advice or tips would be appreciated.

Thanks

Originally posted by @Peter Kraft:

Also, do you recommend any decent real estate lawyers? I saw that your in NJ as well.

Originally posted by @Peter Kraft:

 Wow, thanks a lot. I really appreciate the hard numbers. Is there anyway you can send me that excel template? I want to use it to run other deals.

I see, okay thanks for your input.

It's not that there isn't enough meat in the bones for us, it's that there is a huge repair that we aren't willing to spend. There is definitely still profit margin there for a buyer if they are willing to invest the money. He's going to sell it to us for around 60k the repairs are around 90k, and the ARV is 180k, and those are relatively conservative numbers.

Hello folks,

I'm a brand new wholesaler. I've already flipped properties and made decent profit so I'm not a complete real estate newbie but I'm also definitely not a pro. I have recently got a few calls from my direct mail campaign from preforeclosures and was wondering what is the best way to go about wholesaling them in New Jersey. I have a seller who is willing to sell the house that I was going to buy at a wholesale price with cash and potentially repair it for myself or resell it to another investor. Problem is when I want to the house to see it, there was an insane amount of repairs. The house is in terrible condition, and the contractor I brought told me it would be around $90k in repairs for a house that's most likely going to sell for $180k tops. We are willing to pay off all the mans debts which is around $55k and give him a couple thousand to move, but we wouldn't be able to fix it up ourselves due to the repair amount, and the location being so far away. What would be the best option? If we were to find another investor to buy the property, how would we ensure we get paid for our marketing efforts as well. The property is going to be on sheriff sale on Sept. 16th.

What real estate contract should we use so we are protected from buyers going straight to the owner? I've been adviced against an assignment contract and to always do a double closing. 

Any advice would be of great help.

@Barry Ruby

Can you please send me the contract for the future? I'll private message you my email. Also you're right we made a contract but it wasn't formal. We trusted him too much since it was our first deal and he came recommended by a trusted source. We won't make this mistake again. As for the payment, we gave him 2 payments of 15k and still have the last 11k remaining. When we gave him the 2nd 15k we were hesitant but he told us most of the major work was done, and it would only need two more weeks of work. This was in late December.

@Tyler Stamets @Trevor Maloney

We're waiting until Friday to give him time to step up. After that we are going to start getting quotes from contractors. We figure that if he's going to start genuinely working on it, and we're getting quotes from other contractors while he's there. He'll be disheartened from continuing. Hopefully, he actually starts to make some real progress. If not, we have other contractors lined up to give quotes for the rest of the work. And we can find out if we'll still fall into budget then.

So me and my brother recently got our first deal in November. We interviewed and got quotes from several contractors, and one of them seemed to be by far the most knowledgeable and reasonably affordable. He was also recommended by a seasoned real estate investor that we knew so we went with him. At first everything went very well, he was on top of his game and was doing work extremely fast and in high quality. The problem is that around December he had health issues. He got pneumonia and has developed adult onset asthma. I know this may sound like BS, but my family is full of nurses and they can tell that he is genuinely sick. We tried to be understanding with him and give him more time but it seems like he's just not healthy enough to finish the project. It's been 4 months and the initial time estimate was 2 months. We are getting weary and want to put the house on the market. 

We've now told him that if we can't see significant progress in the next week we're moving on to another contractor. The issue is we've already paid him $30,000 out of the $41,000 initially quoted for us. The issue is I'm not sure if he's going to give us all the material like he promised, since he still hasn't been paid $11,000, he could just say the rest of the material was in that next payment. 

We really want to stay with him since he's a good guy, but every time we talk to him he says it'll be finished in a week or two and then we check up on the house and there's barely any progress. 

What should we do???