All Forum Posts by: Fred Watson

Great advice! Thank you!

I was wondering if anyone has had success purchasing vacant multi-family properties? If I got a hard money loan to cover purchase and renovations, then rented it out, and then refinanced it, would that be a good strategy?

I'm currently looking to invest in small apartment buildings (5-20 units) up to about $400,000. I plan on purchasing the property with a hard money loan, however the down payment is a problem. Does anyone have advice on the best ways to get the down payment money to make the purchase?

I'm currently analyzing a 10 unit small apartment property whose P & L has missing rents from various tenants all throughout the year. This is causing the income to be very low for a 10 unit. The NOI is $12,407 and the list price is $415,000. After I calculate NOI divided by the price, I get a CAP rate of 3%. This seems very strange, so can anyone tell me if I did my math correctly or if I should use a different formula? Thanks for the help!

I currently have the opportunity to buy a commercial property (It has 4 apts and 2 storefronts). The property costs $175,000. I currently have only about $32,000 in personal funds. What would be the best strategy to purchase this property by putting the least amount of my personal money in the deal?  Any advice from investors who have been in this situation would be much appreciated? 

I think I’ll just wait the six months. Thanks for the advice!

Would you pursue other deals with the same hard money lender or wait to see how that one comes out?

I recently bought a duplex with all hard money. The hard money loan expires in 6 months. I’ve had the property for about two weeks and I’m  currently doing some renovations on the property that will be completed within the next week. So in total I would have had the property for about a month and would have made only one payment toward the hard money loan. How soon can I refinance? And what would be the best strategy to refinance into a conventional so I can keep it as a rental?

Thanks for the response Mike!

I currently own a couple duplex properties in different cities, and I also live in a different city than my properties. What is the best way to protect your properties from lawsuits and other occurrences of that type? Should I put both properties in a land trust, or should I put them all in individual LLCs, or something else?

Cory, would that theory hold true for increasing the property value? I need to refinance in 6 months and I need the property to be at its highest appraised value.