All Forum Posts by: Greg M.

We are looking for financial partners to fund up to remaining $90,000,000 of a $423,000,000 project in South Denver, CO (which includes a hotel, sports complex, green house, food and beverage, solar plant, office and retail). IRR (4 years) is 20.54%, 2.11 multiplier. Project is estimated to be completed in 4 years. Please contact me for more information.

James, to your knowledge, what cities/towns in the Denver Metro area allow non-owner occupied pure investment AirBnb properties? 

@James Carlson 

@David Flores, can the bank finance both 80% mortgage and 20% down payment loan to the seller on a commercial property? 

Hi all! I've been searching the forums and continue to be confused about opening up a business bank account for my first rental. The rental is out of state and will be purchased out of state under my name (probably big mistake). I contacted my lending institution US Bank and asked them if the property (conventional lending) can be purchased in an LLC and the banker said no. I failed to create an LLC in that state prior to signing the contract. I want to open up a business account also with US Bank to separate my personal account from the rental account. After reading dozens of discussion and listening to tons of podcasts about this topic, I am confused as to whether it is still worth it to register an out of state LLC and to have my bank account opened in my state under that LLC? I hope I am missing something here. My intent is to have some level of protection but since the property is under my name does it even make sense to open up a bank account under an LLC that the property is not under or just go with a sole proprietorship? I hope you are not as confused as I am because I am sure I am misjudging something here. Please help and thank you!

@Ned Carey thank you for your advice. I am out of the deal and deposit was released to me!

Ned thank you for the reply. The furnace is not mentioned in the contract. The contract in general states nothing along the lines of cosmetic repairs can be used as a rebuttal. This clearly falls outside of that. It has in depth lingo that I'm not sure I can justify. Would you suggest I hire an attorney and pay him xyz to look at it or give them a list of items to repair and would the earnest money (only 1k) be refunded at that time? Thank you!

Hi BP community! I am under contract for my first rental property. I just had an inspection done and I have a few concerns. It's a SF 3/3 1350sqf (1980) home (2 car garage). ARV is in the mid 90K and under contract for 81.5K.

The inspection came back with a few notable concerns. The furnace seems to be original, over 30 years of age and is not functioning at it's optimal state. The water heater is 15 years of age, and will need to be replaced soon. The roof is 2006 and attic inspection showed signs of leakage. All this taken into consideration, I will be looking at 15K+ almost guaranteed to put into this property in the next 5-6 years as it's safe to assume all three big ticket items will need to be replaced. No other major issues but here are some notable defects...

Plumbing vent flashing currently cracked - leaking.

Structural concerns at deck, risk of collapse - rotting ledger and house framing at connection to house - repairs needed, currently hazardous.

Gas fireplace missing damper stop - potentially hazardous.

APPLIANCES \ Waste disposal 130. Condition: Inoperative

Leak stains at the bottom of front valley (visible in attic)- likely current.

Heating in marginal condition. Furnace aged well beyond expected life- anticipate replacement.

No upgrades to the property. Considering the amount of repairs upcoming, the deal makes no sense to me now. My question is what would you put as an objection and should I pursue this property given the specifics? My intent was to lease option it but I do not want to lease option a property and dump it on someone making them responsible for all repairs with such now known upcoming replacements needed. Also, I know that age of these appliances is cannot be used as objection but does the inspection saying "heating in marginal condition. Furnace aged well beyond expected life- anticipate replacement" warrant an objection requesting a new furnace is installed (or monetarily deducted)?  What are your thoughts and what would you do in this situation? Thank you!

I am trying to purchase a property with owner financing. Hypothetically the seller owes $85,000 to the bank and the property is worth $110,000. He has agreed to seller finance the property for 3 years. I am trying to wrap my head around who the principal/interest credit goes to, the seller or to me as the buyer. Within 3 years he will need to be cashed out so if the credit goes to the buyer (me) then would he receive less than what was agreed upon at closing? If the buyer is paying for the property for the duration, shouldnt they receive the credit? Help!