All Forum Posts by: Daniel Rogers

There is a property that I'm looking at in Michigan and the current occupant is trying to sell. The occupant is under a land contract and has a remaining debt of 36K. They have agreed to sell for 40K, but I simply don't know how this would work. Is it illegal to do this deal? How do I guarantee that the occupant will pay the debt to the contract holder? How do I even assign a strange position like this?

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*This link comes directly from our calculators, based on information input by the member who posted.

I'm having trouble finding where my NOI is $45,816, that would place my valuation at $458,160, 10 CAP. How I calculate NOI is net income per month multiplied by 12. On my statement, I haven't achieved a net income of anywhere near $4,500. Is this calculator glitched out, or am I missing something? I should have a much lower valuation.

Thanks for your reply. I understand that banks won't touch anything that needs renovations with a ten foot pole. I'm simple talking about the closing process while wholesaling. If someone comes with cash vs if someone comes with a loan or private financing, how does that effect me at the closing table as the seller? It's happened twice that I say "This is being sold for cash" and I get a response that says "I'm not paying in cash, I'm paying with a commercial loan" or "a private lender". At the closing table doesn't it all translate to cash? Why does the method of financing on the buyer's end really matter? There are even fees at title companies associated with not using cash, but using financing.

I am wholesaling a property, currently. I have it posted that my property is for a cash offer. Someone told me that they are coming with a commercial loan. Upon researching, it appears that coming to closing with a commercial loan, cash or hard money are somehow different things or processes at closing. Why does it matter? Doesn't it all translate to cash to the seller?

I don't understand.

4601 S Martin Luther King Jr Blvd., Lansing, MI 48910 (ASKING $294,380)

**CASH DEAL**

- 8 Units, 2/1's, 780+ Square feet per unit.

- Fully occupied at $550/mo.

- Room to increase rents to $650 with minor cosmetic renovations. Local comparable rents $650-$800.

- Priced at even 10 CAP, asking $294,380. ARV after increases $343,200 at 10 CAP.

- Current NOI 55%.

- New roof & driveway.

**This building is fully leased, please don't bother the tenants**

I'm sorry, this is a cash deal. 1031 exchanging it.

4601 S Martin Luther King Jr Blvd., Lansing, MI 48910 (ASKING $294,380)

**CASH DEAL**

- 8 Units, 2/1's, 780+ Square feet per unit.

- Fully occupied at $550/mo.

- Room to increase rents to $650 with minor cosmetic renovations. Local comparable rents $650-$800. 

- Priced at even 10 CAP, asking $294,380. ARV after increases $343,200 at 10 CAP.

- Current NOI 55%.

- New roof & driveway.

**This apartment building is fully occupied, please don't disturb tenants**

Hey Friends,

My partner and I are currently bidding on a 10 unit motel complex to be renovated into efficiency housing on a lake in Northern Michigan. Partnered by equity with a very experienced real estate investor that has converted hundreds of hotel units into affordable housing developments in Florida. Looking for a pre-approval letter.

Here are the numbers:

0%-5% Down, Seller Financing $115,000, 20yr Mortgage, 4.5% Interest, Balloon At 24 Months. (Total $125,350)

I need to borrow $150,000 for renovations and $15,000 for potential down payment and to carry some of the monthly debt prior to refinance.

The 10 units will rent for $500. 60% NOI values the property at 360K. There is an additional unit on the property we are not including in the NOI until we see it.

700 Credit Score

Best regards,

Daniel Rogers

Hello Everyone,

I am absolutely fascinated with multi-family real estate, specifically the idea of converting inactive hotels/motels into affordable living spaces to buy and hold. I think its a very lucrative and unsaturated market for those looking to get into affordable multi-family opportunities. The prices for these dilapidated buildings can be very reasonable and if they have been out of commission for a while, some sellers are willing to accept creative financing options.

I started my journey of searching for old motels in Michigan about a year ago, only focusing on it on my spare time while I work on my e-commerce businesses. The first deal I found was a 22 unit motel that had been closed since 2012, right across from a lake. I sent the seller an offer by mail with the data I found from the public tax records and went on to visit the property so that I can learn about this unlisted gem from the neighbors. To my dismay, one of the old managers of the complex informed me that the owners had just sold the property to someone else! What timing!

Currently, I have a bid pending on a new property and I am very confident that I will get it approved! I also contacted a gentleman in Florida, who I learned about while Googling "Motel Apartment Conversions" many months back. In exchange for his expertise and consultation on the deal, I offered him a position! He said YES! This is good news for my lenders, since I have very little experience in real estate, and he has literally converted hundreds of large hotel units in Sarasota Florida.

Here's the catch. I got excited and dug too fast. The deal is great, lots of room to refinance and take money out from day 1. The market is in need of affordable housing where I plan to invest. The property is on a rather large plot of land AND it's across from a lake. The owners are open to creative financing and are motivated to sell. However, I didn't network with any lenders before I jumped into this. 

There's a mixed feeling of stress and joy that I actually find rather pleasant, but it would be alleviated if someone could offer advice on how to approach lenders on this forum.

Thanks for listening,

Daniel Rogers