All Forum Posts by: Christopher Lombardi

Ive been asked to become part of a GP in a syndication by providing my balance sheet in order to get the acquisition loan.  Does anyone know what a fair piece of the equity would be for providing your balance sheet to get a deal done?

Don't need a plumber for this, just a good handyman.  When I started out I tried to do as much as I could myself but realized it was a mistake.  Spend your time finding another property every time you hire outside help and it will pay off big time. 

Thanks @Bernard Reisz.  I appreciate the info.

@Jason Bott and @Ben Guttman, thanks for the good info.  I appreciate the help.

@Bennett Albertson Thanks, yes they have max deductibles and are all on the same commercial policy.  I shop it every year and the most recent company I work with has been really good with pricing but still doesn't make sense based on our 15 year history of having no claims and paying out every year.   @Ben Guttman, I know captive is an option but isnt that just extra insurance on top of what you already have?

Does anyone know anything about self insuring your properties and doing it in a way banks are comfortable with? I just pay way too much in insurance and if I could put that money into an account instead I would have a lot more than I need in the event of a claim. I’m sure there are others on here in the same boat. (Not looking for insurance sales pitch). Thanks.

Are you putting them in your own name?  Maybe they ask for personal loans. For business loans they don’t care. I’ve done over 100 deals and they usually ask for current liquidity but not where the funds come from.  Another option is to just keep the money in your account for 3 months and then they probably won’t ask you where it came from. 

@Joe S. Yes you can put it in your business name. You need to apply for a corpcode and once you have that you can move forward with buying it in your company. Keep in mind, insurance is much higher if it's in the LLC.

@Ben Clark don’t tell the bank. Put the money in your account and have a private contract with the financier. Unless he is looking to place a second mortgage in the property the a bank doesn’t need to know and doesn’t care.

Great deal. Get an FHA loan for the purchase. You will only have to put 3.5% down and can finance the rest. Then after a year or so you can go back to the bank and refi into a conventional at a better rate and even pull money out to do another deal