All Forum Posts by: Faye Fu

Thank you, Rhett and Matt, for your input. This is not my deal and I didn't involve from the beginning. The buyers did not hire a local broker when they were entering the negotiation, which they certainly should in my opinion. The listing broker sent them a standard agreement to sign but they want to add something to protect their interest. I don't know about AK, but in MA if a buyer's broker shows up at this stage, the listing broker may not recognize the relationship. That's why I suggest them to hire an attorney instead. Please correct me if I am wrong, and I will forward your information to them. Thanks again!

My friend is looking to buy a commercial property in midwest city, can someone refer a good attorney to review the contract? Thanks!

Hi, All

My client has two condos in Boston, both buildings are 100% rented, both have a commercial unit with 20-25% interest. He paid cash, now is having trouble to find portfolio lender to do cash out refi. He is also looking for buy another multifamily soon and seeking a loan at 1.3 mil range.

Thanks for your help! 

Hi, friends

It has been a few days since my last post. I apologized for that. A lot of back and forth happened and I want to give you some updates for this property.

The current situation is the seller set a final at 3.615 mil, the buyers want 3.6 mil. Seller refused, buyers were not happy.

This morning the mortgage company gave me a quote, 4.35%, 10 year term, 30 year amortization, LTV 75% . And he said he probably can lower a little bit. Personally I was happy with it. But this evening he changed to 4.35-4.45%, said 10-year treasure is moving a lot, lender can't lock it till closing. To get lender to lock the rate, LTV has yo be 65%, plus pay 2% refundable deposit, if the deal doesn't close, lender will keep the deposit. The rate will be 4.25-4.3%. Again, the buyers weren't happy to hear this.

If we put 25% down, the cash on cash could be close to 11 , if we have to put 35% down, cash on cash will lower to around 8.

I don't know what will happen tomorrow. The seller said he has another buyer waiting. What do you think?

Hi , friends!

I have somebody who owns 40 apartment units in West Roxbury , Massachusetts. He is thinking change management company. Please refer to me if you know a good one.

Thanks!

Jon, Joel and Curtis , thanks again! I am meeting with the seller tomorrow. I requested all monthly utility bills for 2014, copies of current lease and financial statements of 2014. I will report updates  here maybe tomorrow night..

Thanks for all your help! Sorry I wasn't feeling well last night, didn't respond as timely as I wanted.

The tenants of the building are mostly college students. 

266K is the net income after all expenses including tax, insurance and management. The gross for 2013 is 361k.

It is a college town with strong rental market. I lived there for 5 years myself. Most apartments were built in 80 or 90s. This one is right on Downtown, very close to school and university, in fact, the shuttle bus stop in right at the front of the building. There is no land around university to build in foreseeable future.

It is listed over 4 million.

The reason for sell, according to the seller, they have more capital in this property, the are building another project, need the money for the new project.

Another news is the city just approved 32k/year property tax rebate for next 8 years, which is not included in the calculation.

Thanks again!

Hi,friends

 I am helping a couple friends to buy an apartment building . It is located at a college town, total 32 units and 46 beds. It was built in 2011-2012. Last year's net operating income is 266,000. seller is asking 3.65 million. 100% rented. The seller is pretty firm with the price, because the condition and location. Do you think it is worth this much?

My friends are from overseas, one has green card  for couple years, another one doesn't have. It will be difficult for them to get loan.

I have never dealt with apartment building before,but they trust me, I really want to make this work them, any advise will be appreciated.

Thanks!