All Forum Posts by: Erich Beyer

One minute background: my brother and I have been investing for three years, have 5 properties 7 units with a total value of about a million dollars. There is currently a historic building for sale in Phoenixville Pa where we invest that is in disrepair. The area is up and coming(actually is) and this property is right on the edge of where new investments are currently being made. The building has 29 rooms (5 1 bedrooms, 15 efficiencies with no kitchens, 9 single rooms that share three bathrooms, a bar and a deli and is 10,000 square feet. The property has the ability to use a hotel liquor license which can be renewed for $7,000.00 where a new liquor license in the county normally costs $250,000. The property is for sale currently for $550,000 and has an ARV of about $1.6-1.8 million. We have good contractors we used on our last project and they quoted $350,000 (they are good AND cheap) for the renovation for the property as is, but we would probably add kitchens to the efficiencies and make the 9 singles into three two bedroom units. We calculated $25,000 gross rent a month total after the renovation and used a renovation cost of $575,000.00 for our calculations. We were planning on using hard money of $800,000 and $200,000 of private money to cover the purchase cost and renovation (I've spoken with the hard money lender who is on board and am speaking with current and potential private investors) then planned on refinancing once we finished. So, the questions: Would the bank require a seasoning period for the refinance? What are things we should consider that could go wrong?(asbestos, issues with old buildings etc) I have spoken with the borough and they would be in favor of us putting pretty much anything there. Would love any and all thoughts! Thanks in advance!

Thanks! Forgot to mention we are looking at a 6 and 8 unit currently!

Hey all! Just wanted to share my brother and my first, second and third success since we haven't shared the others. We decided to buy real estate in college when I read Rich Dad Poor Dad. We talked to a number of people and a few years later(2013) I found a duplex for sale by owner in downtown Phoenixville Pa. We raised 20k from our friends and got the seller to agree to a purchase price of $95,000. We put down 20% (yes, almost all our money) with a 30 year am and 10 year term but were able to raise the $37,500 we needed to rehab the property soon after. Upon finishing the rehab we received a letter from the seller stating she would give us a 10% discount if we could pay her the balance within a year. We negotiated a 12.5% discount and refinanced the property after it appraised at $200,000. We paid her out and were off to our next project.

So after the refinance we had about $70,000 to work with. We found and boght a twin for sale for $210,000 that was a single on one side and duplex on the other(now 2014). We planned on renovating the single and selling it, but later decided to keep both as rentals. They were/are under market rents and as of next month will bring in $2850 in total a month.

After this we went out and raised more money. We worked with the same bank for all transactions and have become quite close with them.

We found another duplex that needed a lot of work and purchased it after raising more friends and family money. We got a construction loan from the bank, and got a one year loan telling them we would refinance after the renovation was done.  We bought it for $160,000, put $85,000 into it, and each side just appraised for $190,000 (we split the zoning so its now two sfrs) We just signed a lease for one side for $2000 a month and have the other side for rent.

To anyone that is trying to get into real estate stick with it!

Hey David, I've realized that there are many very experienced investors on BP, and they tend to be more vocal. Its easy to get your back up and defend yourself, but I've learned its better to genuinely try to see if what they are saying is true whether they are kind about it or not. I would pick and choose what you listen to, but maybe what they are saying could make you a better investor! Good luck and keep investing.

Hey all! My brother and I are working on a duplex deal (improve and refi) that should net us about 150k in the bank. We have a few multifamily properties and multiple private investors that we could use for additional funds. Once we cash out we will look for a small apartment building of about 10-20 units, ideally owner financed. Does anyone have suggestions for getting started in this space? I was thinking about doing something similar where we purchase with owner financing, improve, then refinance with private money or bank to maintain good cash flow, as well as pull out equity for more investments. Would love any and all thoughts on my strategy, as well as suggestions for others.  Thanks!

Thank you all for the replies! Both units are rented, but our strategy is to renovate and refinance to cash out investors, so we definitely need them out! 

Thanks! Will definitely post pictures. My realtor said because there are no leases we can change the locks. We'll be kinder than that but good to know! I was thinking of giving them a couple hundred dollars to have them move out on such short notice as long as long as they leave it clean. Thoughts?

Hey all! My brother and I are buying a duplex in PA that already has tenants.We are planning on renovating the property, but need the tenants to leave. I know there are laws that require 90 days notice, but neither side has a lease. Are we allowed to evict them day 1 because they don't have a valid lease? Also how would we go about doing that? -Thanks!

Thank you Lynn! Any and all thoughts welcome!

Hey BPers! Alright so I have an elderly tenant who has bed bugs, is a moderate hoarder and who's rent is at least $150 under market. We inherited this tenant and don't know what to do. We let him know he had to clean stuff out and he has started but isn't making nearly enough progress. His church is paying his rent and he has no money at all. My brother is checking the lease to see who would be responsible for the bed bug remediation (though like I mentioned, he has no money). In PA are we able to just tell him we are not renewing his lease and to leave? His lease is up in July. Any suggestions?