All Forum Posts by: Glen Gallo

Bump as no replies. Anyone run across a note with this language? 

I have found an online calculator for any looking for the 30/360 Actual 360 Actual 365

https://amortizecre.com/

does someone have a link to 360 commercial loan calculators?

We are at the end of our loan in 8 months. I want to double check the banks figures

I am looking at Actual/360 vs 30/360

I would also ask the lending experts here is it normal to have a per diem column on an amortization schedule? 

There is about 3 months payments added on as a due on completion. Is this normal?

Promissory note has no balloon described. No description of per diem. No amortization schedule was attached to my documents

It does note unpaid principle will be due on maturity date

language

interest is being calculated and on the basis of a 360 day years ("Actual/360 Basis") Monthly Payment will be calculated on the basis of a 360 Day year consisting of 12 months of 30 days each ("30/360 Basis")

I find this odd as with a brief research I find the the actual/360 is a greater number should this not been the use for a monthly payment rather than tacking it on? Why use both in the description in the note?

Thanks in advance

seems thin to me. I am not an expert. lots of missing information

what I don't like

Beer Business sole occupier

Dont get me wrong I love beer but that business model is saturated. Combine that with the pandemic 

The other guy pulled out why? Maybe he was right but more importantly he was not fully committed for this start up. A really dangerous way to start a business and sink money into it. What other mistakes have they made? What track record do they have success in if any

Agent owner that is bailing out seems to be controlling the narrative and profiting one way or other at exit

I would never want a piece of my tenants business. Blurs the role.

what is not known from your post

building size-class- location- comps cap-rates-occupancy rates 

how long can you go with no rent. how much can you afford for TI up front and out of pocket

what can the building be repurposed into? 

Tenants come and go

Commercial is a tough market right now.

seems like 2937 stand alone class C at  1.60 per foot

Looks like a resounding no based on information provided.

I see it as a one horse show and I don't like the horse at first glance.

I will defer to the experts

 

Loopnet is a good place to advertise. It is difficult in my view to dictate a business to a location. You might not want a liquor store but it might fit the location. Good tenants are hard to find especially long term ones. As a landlord you can choose to be an advocate. But at the end of the day its a business.

Would have to agree with Ronald Rhode.  I would pay for the advice of a professional.

Your statement makes this even more important in my mind.

"I love the loan terms and they almost seem to good to be true, except the yield maintenance."

Whatever cost for advice might be well worth it. There are multiple lenders. If its a good deal you have options.

It has been many years since I applied and was accepted on commercial loan I am sure the market is very different today. (14 years ago) It was a very long process for us. I had the help of a Real Estate Attorney. I did sign a personal guarantee for the new LLC at that time.

I think the real issue will be do you have four separate water feeds to the units?  Do they all have their own water heaters? You will need a seperate house line as well. For four units it seems a bit complicated to read it monthly on the same day yourself. Since there is a code which I am unfamiliar with you would need to study it and understand it. My guess is the equipment needs to be of a certain standard. You could just produce a lease with CAM charges and bill according to overall usage divided by four Or charge more for rent to cover water and sewer fees.

@Casey Murrayundefined

Thank you for the reply. One reason for forgoing 1031 is I want to use the funds to pay a note on another property

projects like this are a moving target as there is always a surprise of some whether that be a discovery or a new idea from the homeowner

sight unseen sounds like 100-125k

Hello I am putting together a worksheet for analysis of whether to keep and rent or sell and take profit for a single family home.

The home has never been my residence. Held more than a year.  Married filing jointly 125k income

Not looking at a 1031 at this time

between State and Federal what should i pencil in for Cap Gain percentage

Real Estate fees percentage

ancillary fees percentage

Thank you in advance

Well I do not have the experience of many on here. 

Here goes anyways  In commercial cash flow is King. Spending the kind of money you propose on rehab might not be wise

What are the rents before and after rehab.  The building should be maintained well CAM needs to be done and it needs to look good and be desirable  but taking a C Class to B Class or A Class can be expensive and not worth the cost

Getting good rents by reasonable improvments that are cost effective in my experience leads to more flow than a total gut. 

As a small operator I will no longer do TI without a client direct influence. Commercial often want custom to their needs and producing something beautiful can result in tearing it all out 

I try to improve as much as I can during turnover only. Making the space pleasant and inviting and we'll maintained for CAM areas is important but not expensive