All Forum Posts by: Scott Sewell

I believe Prashant P. is correct. I went through this on a reno and was able to get the proper information from a local plumbing supplier. I forget the (general) color codes now, but more importantly is the written code ON the handle. Gas valves are for gas which normally operates at 6psi (pounds per square inch), NOT for water which normally operates at 40-60psi. I'd check it out 'cause a failed valve makes a heck of a mess (and can cost serious money) quick.

Hello BP,
Please consider this our introduction, and thanks for this opportunity. My wife and I are novice investors and have spent the last 5 years honing our property management skills, learning all we can about investing, and repositioning an 8 unit multi-family from a D+/C- property to C+/B- with what we consider good results. Good increase in equity , good cash flow, minimal vacancy factor and management requirements.
We're looking at leveraging that equity to buy more property, but want to be smart.
The question is this: We've heard horror stories of banks calling notes out of the blue (second hand information for sure, but) or at least not willing to re-up (is this a word?) existing financing at the end of the term.
Is this something we need to plan for?
What parameters would the (existing/new) lender look for at that time?
Our (commercial - portfolio) note is amortized for 20Yrs, with adjustments every 3 (2pts. max) and a call in 12, and always paid on/ahead of time. The property is an old (by Alaska standards) legally non-conforming property and we know that this can be an issue. It seems that a well performing loan would be the banks interest to keep, but it's always good to be prepared.
Thanks in advance, we've learned as much in the last 2 months of watching BP as in the previous 4 years on our own. What a resource!

Quick edit. I noticed my original post said "not less than 4 units". Should have been 5.

Hey Karen M. Thanks for the welcome. My wife and I are novice investors by BP standards (By the way in Alaska, BP means British Petroleum) and we are looking at acquiring more multi-family property. Alaska is a place everyone should visit at least once, and if you're lucky enough to have some sunshine, nothing is more beautiful. The market here in Anchorage is fair to good, we never had a big crash in prices as much as the rest of the country. Overall Alaska has been chugging along at about 1% growth for the last 10 years (I just listened to a couple of economists speak about this). Thanks again.

1. WHAT DO YOU CONSIDER COMMERCIAL PROPERTY?
All RE Investments not less than 4 units.
2. Do you invest in commercial property? Why not if you don't?
Our investments are primarily "commercial" residential (i.e. multi's)
3. Have you ever owned commercial property?
Yes
4. If you had the money to invest in commercial, would you?
Looking at more right now. Love the multiplier effect (& passive income) of increased NOI!

This may be a little more involved up front but, it's worked very well for us over time. And might not work if we had 100's of units. We set up individual accounts for each of our rental units (and note the # on the lease) with our financial institution (a pain, but worth it). We chose a widespread local credit union for convenience. We then set up a general account that pays the bills (and us). So the tenants can pay their rent electronically or by just making a deposit to the unit account (they keep the deposit slip as their receipt). This way, on the 2nd of each month we log into our accounts, transfer funds, note our rent roll, and send out notifications as necessary.