All Forum Posts by: Rich Jordan

I'm currently under contract for a 18-unit multifamily in NC. The seller has an on-site property manager in place receiving free rent for one unit + $1000/mo salary + another unit as an office. I plan to use a 3rd party PM company and reclaim the on-site PM's unit and office as two units for lease. This change alone stands to gain me $150k+ in equity due to the increase in NOI.

My concern is that firing this PM may prove complicated due to his status as a tenant. The fair thing to do would be to first give him the opportunity to start paying rent and remain in place - and I will do that, as long as he meets my tenant criteria following a -$1000/mo blow to his income. If he refuses, this could quickly devolve into an eviction. Any recommendations on how to approach this? Anyone navigated a similar transition?

@Jay Hinrichs  A little bit of it all. Rate was too good to be true IMO. Rate was given as 4% flat fee regardless of loan amount ($5,000 - $5M) or any other property details. Loan was approved in hours with very little information req'd and loan application only asked for some basic personal details and requested loan amount. With the app submission, I asked the lender to send me his credentials for my verification while the application processed. Instead of a response, I received an approval and a request for an $870 origination fee accompanied by an odd write-up defending the fee - stating that it would help them "trust me" and "know that I was a serious businessperson." Kind of hilarious, really.

Asked him to call me to discuss. Answer: "I am very busy with my many other clients and can call you at a much later date. Let me know if you'd like to proceed with your approved loan."

Luckily didn't waste a whole lot of my time and none of my money with this one. 

@Eric Adobo Can't argue with that, brother.

Hey everybody,

Recently had an alleged lender try to scam me while trying to originate a loan. Nothing came up on google or BP when I searched his contact info, so I'll put it here for any future targeted investors. Interestingly, my agent was recommended this lender via a professional facebook group. Trust but verify, folks.

Lender's email: curtisleonloans at gmail dot com

Avoid this lender.

@Jedd Braunwarth I still need to determine how the plumbing runs in the building. I sense that it is not separated already. What company and setup have you seen that would be ~$300/unit when unseparated? 

Currently looking at a 30-unit property. It was built in the 50's and the owner pays water, gas, electric for the property. Does anyone have a general idea of what it would cost to submeter one or all of the utilities? What has or hasn't worked for you?

Hey everybody,

Looking to drill down into the Eden, NC market. Does anyone here have recommendations for lenders or agents in the area, specifically for mid-size multifamily? Agents in the Boone, Winston-Salem, and Greensboro areas would probably work as well.

Thanks!