All Forum Posts by: Dolev Shemesh

Hello, 

I'm in a process of selling some portion of my residential real estate portfolio to fund a new commercial opportunity. The Plan is to come up with $400k for the down payment and for that I'll need to sell about 3 of my rentals. 2 of them are single family with a ton of upside, so I don't foresee any issues selling them. The third one is a condo that I'm having a hard time selling atm. 

Since this is an all or nothing deal, the challenge is to find buyers for all three properties at the same time. I also have a dead line with the seller of the commercial property. I currently have 2 pending offers on the first 2 properties but no inquiries as of yet on the third one, which lead me to my question: Should I go with a HELOC? And if so, does anyone know a good lender that does HELOC on investment property? My measurements should checks out fine (credit, Income/Debt ratio, etc.).

Thank you for all those who could offer any assistance.

 Thanks so much Jeff. 

All are very informative. The early payment penalty is certainly something for me look in.

Are you familiar with the Tampa Bay area? 

Just messaged you 

Hello, 

I'm facing a great dilemma regarding an investment strategy and I'd like to see other investors' opinions/input on this. I'm current real estate investor (not full time) that have about 10 residential- signal family properties. All are doing well. 40% net/annual (about $50k) and 10% COC.

A friend of mine trying to leave the area and sell a commercial property that he owns. It's a unique facility that serves functional activity such as YMCA. It has many tenants such as full size gym, yoga studio, NEW full outdoor area for pickleball, ju-jitsu, and other recreational programs that renting (16 total units - currently 9 are occupied). Other benefits: Located in a growing area, and have a full bar Liquor License and a bar that is currently not occupied (A lot of potential there to sell alcohol). 

But the cherry on top is this: seller is a friend and very motivated to sell, so the terms are 2nd to none: 30yr AMP table @ 4%, and 10 year exit (balloon). If the rent are being kept for our agreement, I'll increase my net income by 173%. 

But now for my concerns:

1) What do I do after the 1st 10 years? Do I have to pay a lump sum or just find another lender with new terms? 

2) It took me a while to build my residential  portfolio, and we all know that residential is far safer investment than commercial (especially now); However this is not an office building and related to leisure and "fun". No Risk No Reward - I know... but a part of this investment will mean that I'll have to liquidate about 60% of my portfolio to come up with the DP. 

3) Insurance right now is at a little over $30k/year, and I expect this to keep on growing. So insurance cost is obviously higher. 

Thanks for reading through and looking forward to hear ANY feedback. 

Thank you. That what I was thinking

It is a friend, yes. He want cash now to built an off-grid house and home school his kids out of the country. He just want to get rid of the business but he did a ton of work on it (New AC, roof, plumbing, etc). 

This is in a growing area near Tampa, Fl, so I'd consider a very strong location indeed. Without giving too many details, it's a similar to a strip mall just one big building with different suits in it. Tenant mix and quality seems to be strong and committed to stay in this growing area for the long run. The service that this type of business provides is also extremally relatable to the demographic.

Should I have any concerns about the refi in 10 years? I know we can't tell what the rates will be then but seeing what's going on now with CMBS is making me a little nervous.

Hello, 

I have this good opportunity buying a complex. Seller offer private financing for 10 years @ 5% interest rate. Cap rate is 10% @ $2.2m ($400k DP) and I'm calculating approx. 33% annual profit at these rates. All units in the complex are currently rented and under contract for the next 3-4 years. The area have potential as it's a growing area. Seller will sell as an S. Corp to avoid high taxes on the property. 

Seller could extend financing after 10 years but I'm not counting on that. My concern is adjustable rates after the 10 years, but the rates above are just too tempting. 

What should I do? 

Thank you. 

With over $90B in commercial real estate loans due to mature (and default) in 2023, does anybody else see an opportunity to buy and convert these units to residential where applicable? Cost to convert might be high, but buying $0.50 on a dollar may be a good way to buy and maybe even hold until conversion for long term strategy? 

Is that something I should aim for? 

Hello,

I have a lead of a potential off market deal in Brandon near Tampa, FL. I'm a real estate investor but I have never been the "middle man" in such deals. 

Looking for someone that could give me some guidance and will keep my best interest on how to create an exclusivity rights contract, provide tips, etc. 

Thank you

Hello, 

I'm a beginner real-estate investor with few properties in my portfolio. As i'm trying to expand I was think about opening an LLC.

Will an LLC provide me with any tax benefits? what are some of the benefits (besides the obvious liabilities portion) of having an LLC?

Also - should I put all properties under the same LLC or separate those out to max out liabilities options?

Thank you for your help.