All Forum Posts by: David Sanford

@John McKee thanks! I emailed HCA asking them to extend, but it seems pretty unlikely and not the norm to ask them to extend 2.5 years out.. have you come across this before? I'd love some suggestions to get this to the closing table.

@John McKee 100% occupied with one tenant, HCA. Been there for 18 years now actually. I'm not really seeing 2.5 years left on the lease as odd, it's just too far out for them to go ahead and renew. I'm a fan of the deal for many reasons. All HVAC units are 4 years old, roofs are 2 years old, NNN credit tenant, buying at a 25% discount with an instant $1M+ equity, and the seller is going to carry the 25% down-payment at 2.5% interest! Great locations and buying it at a 10 CAP in a market that's currently selling at 7 CAPs.

@Joel Owens I suppose I mean I'm buying it at a 10 CAP. Market for this asset is currently a 7 CAP. Also, thanks for the tip. These are NNN and actually the roofs were just repalced in 2020. Pretty sweet find.

I have a deal under contract for $2.6M for two medical offices at a 10 CAP. Total value currently is $3.5M being conservative. I'm have a hard time finding a lender to lend on it because the leases expire in 2.5 years and they all want at least 5 years remaining. Therefor I'm considering going with partners on it to buy in cash. Very big tenant in place for 18 years now. 1980 build. About 20k sq ft in total between 2 buildings located in Central Virginia.

I just got approved for a $200k line of credit backed by a few of my rentals equity. My plan was to use the LOC to fund purchase/renovations of a house at a time to build up cash for my long term goal, however I'd like to see if there is a better option out there. My long term goal is to invest in a syndication or JV an apartment building or mobile home park. I thought of using the line to JV as my half but the line has to be paid off for 30 days of the year so I can't use it for a long term investment.

@Katherine White-Bentley could you hire a VA or someone off of upwork for this? Seems like a small task. Although I could be under estimating the task at hand.

@Rohan Dodda 🔥🔥🔥🔥🔥 I'm giving you about 2 hours of homework since you're on summer break.. Go listen to BiggerPockets podcast 346 and podcast 371 and then come back to the forum telling us what you learned and what you're going to start taking action on. Tag me so I can hold you accountable 😏. Your age is irrelevant. Your drive and ambition is what matters. The only reason you may think it is an issue is because others Your age aren't in the "game" yet.

@Lucas Craft Lenders vary with that one. You could find a mortgage broker to help you out. They can shop different lenders for you to save you a ton of time, and they'll likely already know of a lender or two that can work with you. Some lenders (mainly commercial lenders) will look largely at the properties ability to pay for itself through rent more so than your personal financial position. Some banks use a portion of the rent to offset the DTI. For example, they may say that you can you 75% of the leased amount as income (the 25% difference is what the lender assumes for maintenance, vacancy, etc). However, typically with this, there has to be a current lease on the property and not a "best guess" as to what it would rent for. Start with small local community based banks and call around if you want to skip a mortgage broker.

@Jason Morgan how long has the house been on the market? Trimming a tree is a minor expense if she's in a hurry to sell. To combat the roof request, she could have a licensed roofer inspect the roof and provide a report saying the roof is in good shape and has approx X years of life remaining. Although it was fine 4 years ago, that was still 4 years ago. Could be close to the end of its life, hail damage, discoloration, missing shingles, wind damage, etc.

@David Guglielmo Largely depends on the bank. They'd likely want to ensure that the $10k monthly payback payment wouldn't throw off your debt to income ratio. If they see it as an issue, I'd shop around with different banks. Start small and local with the banks that have few branches (like under 10 branches).