All Forum Posts by: Greg W.

 Yes,  it's some things I could clear up. 

I will have a decent amount of equity from down payment, 4 years of higher payments at 2% interest,  and appreciation from bettering the condition of the building and increasing rents. 

I have some experience with refinancing residential properties but this is my 1st commercial. I'm learning a lot, even if its the hard way.

I will send you a message. 

I was finally able to get him to sign extension with notary.  This gives me some time to get things in order and pay down balance a little more. 

I appreciate everyones thoughts and will make sure I'm better prepared in 12 months. I've definitely learning a lot,  even though it's the hard way and won't make the same mistake in future deals. 

Hi all, 

Would you rent a unit in your building to properly manager . How would you structure lease so it won't negatively effect value of building. Can I list the higher rent but then agree to a monthly credit for her managing the property or is it easier to have her manage building for free in exchange for rent?

I'm refinancing in the next 12 months and want to show the most income. Will also want to consider putting clauses in place to cover if I sell the building or we end our owner/manager relationship, the lease could come to a end.

Thank you

Hi,

Would you rent a unit in your building to properly manager  . How would you structure lease so it won't effect value of building from less income. Can I list the higher rent but then agree to a monthly credit for her managing the property or is it easier to have her manage building for free in exchange for rent?

I'm refinancing in the next 12 months and want to show the most income. Will also want to consider putting clauses in place to cover if I sell the building or we end our owner/manager relationship, the lease could come to a end.

Thank you

Hi,

A few years ago I purchased a 7 unit building with seller carrying the mortgage with 2% interest for 3 years that ends with a balloon The price was $310,000 and I put down $30,000. I made a mistake of not getting an inspection and took the sellers word on the condition and age of things. Immediately after I took over, tenants complained that there has been roof leaks that the owner attempted to fix himself, without good results. I paid for many repairs but water kept getting in. I eventually ended up replacing the whole roof.

At the end of last year, I talked to him about extending our agreement because I spent a lot more money than expected and had credit things to get in order. We verbally agreed on 18 months if I pay an extra $5,000 towards balance when original agreement expires. I sent him a written agreement, which I got my notarized signature and emailed over to him. It's been months and he hasn't gotten it back to me signed. I emailed him about this and he says he agrees to it but we have a few months before we need to sign. I didn't want to wait until last minute and don't feel good about this.

My question is, what are my options to get out of this situation the best I can? I know I can go refinance but do have the credit challenge. an I request the contract be voided for not disclosing the roof situation? What would you do?

Thank you

Hi,

A few years ago I purchased a 7 unit building with seller carrying the mortgage with 2% interest for 3 years that ends with a balloon The price was $310,000 and I put down $30,000. I made a mistake of not getting an inspection and took the sellers word on the condition and age of things. Immediately after I took over, tenants complained that there has been roof leaks that the owner attempted to fix himself, without good results. I paid for many repairs but water kept getting in. I eventually ended up replacing the whole roof.

At the end of last year, I talked to him about extending our agreement because I spent a lot more money than expected and had credit things to get in order. We verbally agreed on 18 months if I pay an extra $5,000 towards balance when original agreement expires. I sent him a written agreement, which I got my notarized signature and emailed over to him. It's been months and he hasn't gotten it back to me signed. I emailed him about this and he says he agrees to it but we have a few months before we need to sign. I didn't want to wait until last minute and don't feel good about this.

My question is, what are my options to get out of this situation the best I can? I know I can go refinance but do have the credit challenge. an I request the contract be voided for not disclosing the roof situation? What would you do?

Thank you

The 7k is my estimate. I like the idea of doing a rent credit to keep the value of property intact.  

Some things I would add to contract are

-condition of me remaining owner

-conditions of us keeping an owner/manager relationship with the rest of units

- contract at market rent with credit of among we agree upon (maybe 8k) 

I agree,  if it gets more complicated than this,  I wouldn't do it. 

Thank you

Makes sense. Appreciate it Jeffery

Hi, I work with a property management company at one of my buildings (a 7 unit) at 9% of rents. One of the units was destroyed by a tenant and need about $7,000 of rehab. 

The property manager offered to do rehab in exchange of rented out the unit as her office for free or cheap for a year or two. 

Would you do this? Would this effect the property value by decreasing the income I could have had for this unit or could rehab be considered a years rent for tax and property value purposes? 

Thank you, 

Greg

Thank you guys! Will do.