All Forum Posts by: Eric Johnson

@David Thompson  Thanks for the point to the podcast I will check that out.

@Tom S.  The shortened amort will probably change the cash flow a bit, and I will have to remember that for the next deal.  How did you get the local bank to take over financing and pickup the capital expenditure?

i just moved to town a year ago and I am thinking I need to network like crazy.  I see things that would work but can't make the connections fast enough to make it happen.  This property was purchased by someone else and might never get back to functional.  I hope I am wrong, I would like to see it become something again.

Thank you.  I appreciate the advice. I just found the educational course on the site, and realize how much I need to learn before I try to move forward.  Hopefully I will be able to hold a coherent conversation after I finish this course.

Eric

I am really new to the area of real estate finance and need advice.  

There is an old storefront in my town with 3 storefronts and 6 upstairs apartments.  The current owner bought it at an estate auction for next to nothing and is looking to get rid of it.  It could probably could be picked up for 30,000 but it needs a lot of capital invested into it ($100,000).  (New roof, renovate apartments, HVAC),  It looks like it would cash flow 1,700 a month when fully put together but someone would have to wait before they started getting anything back.

Since I am so new I would like to know what kind of an offer I would have to make someone and how I would present it?  I only have sweat equity to offer, but the cash flow would basically be the investors until the bank would be willing to back the building.  I want to be as fair as possible, can someone point me in the right direction?

There was already some good advice on possible approaches to this property, but I don't quite get the details and what the investor would need to see before they were comfortable with a deal like this.

@Shawn Ackerman Thank you for the reply, its good advice.  How would you go about making an offer of Seller financing? Who would you approach about renovation capital?

Many of these owners are older, do not have a great deal of money themselves, and without the management skills required.  Any many cases these buildings were treated as cash cows but they forgot to hold back enough money to feed the cow.

What would your thoughts be on offering an exchange of work and management for partial ownership of the building?  They would get reduced renovation costs if they can afford it. 

Hello Everyone,

I live in Independence, Kansas.My wife first brought me to live here 10 years ago and I fell in love with it.It is a small rural town with lots of history.It has one of those old downtowns that run along Main St. and a couple of connecting roads.It is really great and I want to be part of this community.

Along the streets of this town are several storefront buildings with apartments above them, but many of them have been let go and run down. After talking with some of town leadership I found that the owners of these buildings would rather sell than fix them up.There are several incentives for the owners but no one has taken advantage of them.It would be so good for the town if someone bought them and fixed them up.

I have been considering rental property as a retirement plan for some time. After some consideration I feel ready to take the plunge but have very little money to get started.  After some investigation I found this site that had information on low or no money down apartments and was encouraged enough to join the site.

It would be really great to learn how to present an investor with an attractive deal that is fair to them and allows me to trade sweat equity for a better future.

@Michael Sato

Thank you for taking the time to address my concerns. 

For any others facing this dilemma, clearing the browser did not help using chrome, but I downloaded Firefox and it worked first try. 

Thanks again, I look forward to being part of this community.

Hello, I am brand new to the site.  Before I introduce myself I would like to attach a profile picture.  I have been having trouble however.

Each time I click on upload profile picture nothing happens.

I am using google chrome and not sure if I am missing something basic.

It would be much appreciated if someone could point me in the right direction on this.