All Forum Posts by: Hoseah Njuguna

Hey Brandon,

Thank you for your input. My client will not entertain sublease...so the property would have to be in my name (or my company). As for creative financing: that is an area that am exploring and my discussions with the bank has been positive so far. Its a sizable project and would like to partner with someone who maybe more credit-worthy to the banks or has the capital to put towards the downpayment and tenant improvements.

@Ronald the reason am seeking a partner is I do not have the down payment and tenant improvement funds.

if I had the funds, I would certainly go at it alone.

@Berry Starnes, @Evan O'Brien Its really not a complicated process.

Once you log on to your TSP account online; on the left tabs there is an option for TSP loan. It will tell you how much loan you can access and the interest rate. There are two types of TSP loans: General purpose and residential loan. I have used general purpose. It also allows you to determine how fast you want to pay back the loan.

Once you decide how much, and the duration, you need to sign in-front of a notary (get it notarized) and send it back. Your check will come in the mail.

It fairly straight-forward process.

Hope that helps.

@Evan O'Brien feel free to reach out..PM with your question about TSP loan. Happy to help if I can.

Am looking for some input on what are good terms for a partnership.

I have a deal that I am presenting to a potential partner.

Its to purchase a commercial building and lease it out to a long-term tenant.  The numbers look good.  The only thing. I can not come up with the 20%  downpayment for this building (priced at 359K--so downpayment is $71,800). The rest would be financed.

Based on my calculations...IRR of 48% per year; 15yr holding period.

Now since I am the source for this deal and will take all the steps from negotiating purchase price etc; bidding to lease the space, negotiate terms of the lease, oversee the tenant improvements etc.

So the main thing the partner is contributing is the capital for down payment.

Whats a reasonable partnership split for such a deal?

@Andrea Hardaway thanks for your feedback. are you in the market for more commercial offices?

Hi BP.
I have barely seen any posts here on investing in office buildings.  Is this a sector that is not popular or is it that many people have not looked into it?  I happen to work in commercial leasing and come by great tenants willing to do 10yrs + fixed lease term and several years of soft term above that.  I have analyzed a few properties based on tenant's requirements and available properties for sale in those region and they are a healthy investment.
Just want to see if there are some BP members in this sector and what their experiences have been.  I would love to network and possibly be a good resource.
Happy Investing

Hi Berry. I have used both TSP loan and HELOC to purchase investment...I certainly thought the ROI from real estate was better than relying on highly fluctuating stock market.  HELOC are also highly reliable source since the interest rates are low.
My tenants pay back the HELOC and TSP and now I have another cash flowing property.

I think what you are thinking about is a great strategy

Hi Chanda,

If you have a separate bank account for your rentals thats the best practice.  Maintaining a log of when you received the deposit and the amount is also good.

I maintain excel reports of each property...event, date and amount

As for collecting deposit. It mandatory for my rentals. I will not take the risk of having some cover in case the tenant destroys the property.

Hope that helps.

Hi Eric, Did you ever find someone to assist you?