All Forum Posts by: Jack Yen

Hi Lyn, where is this at? Is it off-market? The number looks good overall. I would try to find local commercial lenders and present the number to them and generate interest. For debt service, I would use at least conservative 75 LTV(25 down) 6% IR a 25 amortization for multifamily on a conventional term to get an understanding of cash flow after debt and calculate cash on cash. 30-year amortization is likely but it depends on the location and it's a case by case. You mention HELOC, have you found out how much equity you can pull out? If the deal is good, I think there will be ways to get your project funded and some banks might be a little bit more aggressive. If the seller own it outright, you could also consider proposing partial seller financing. Hope this helps

@Scott Meyers Thank you for the feedback! I think that's a great suggestion. I've ask for a few years off P&L but so far I only got a portion so information is not very complete but I can see there's definitely room for increase occupancy based on my understanding. How do you usually proposed and structure the owner financing? Thank you!

Hi,

I came across an opportunity that I look at last year and the broker brought back to me due to the previous buyer had a second thought. The number looks interesting and has many value-add elements. I'm wondering the next step, how to finance this type of asset? I've been thinking about the SBA since it's owner-occupied and I can use the loan to purchase everything including the real estate and with higher LTV, am I right? Would anyone give me some guidance and recommendations? The facility is in NC. 152 units

hey @Joseph Stammeyer we end up not moving forward. There were some push back from the broker not giving us some more information to verify our numbers and we don't feel very comfortable. I agree it seems it will be a involved task to manage this and it's all-cash business. So there's good and bad. 

Hi,

I'm searching for home insurance options for my triplex. The quote that I've received from the company that I requested seems a little higher. I'm wondering if there's a company that can provide a better rate for small multifamily units. Thanks!

Thanks @Keith N.! It's very helpful. I will implement your method first and see how it goes. Thanks a lot! 

Jack

Hey @Keith N. Thanks! that's a great idea. I've been contacting company like guardian but property needs to have plumbing ready otherwise it will cost a bunch to re-route. When you mentioned the water charge, do you put it into the contract? I'm wondering how I could put it into writing so the tenant will pay.

Thanks,

Jack

Thanks @Caleb Heimsoth I'll give the city a call and see if the submeter is allowed. If the city won't do it, I guess the next option would be going through the bill back system correct? What's your experience on those? Thanks

Jack

Hi,
I'm brainstorming trying to see if I could pass the water/sewer responsibility to the tenants. I have a triplex in Raleigh and currently paying water/sewer for all 3 units from the master meter. I'm trying to see if I could pass the water/sewer responsibility to the tenants so the tenant could be responsible to the water/sewer usage. Anybody has done this and would help to make suggestions? Thank you

Hello,

I'm interested in getting some recommendations and learn about the SBA 7(a) program for carwash(business plus real estate). I'm wondering if anybody has done that? It seems to be a good fit for carwash with higher LTV from my research but I want to learn directly from experienced business owner/investor's opinions. Thank you,