All Forum Posts by: Jairmiya St. Hilaire

@Patrick Charles 

GRM= Price/ Gross Scheduled Rent.

EX- Price of 10 Unit Apt. Bld is $1MM. Rent per unit is $1,000 which equals $10k/Month or $120k/yr in Gross scheduled Rent. $1mm/$120K= 8.33 GRM

This means that at 100% Occupancy it would take you 8.3 Years to collect $1MM worth of income or another way to look at is it would take 8.3 Years for the property to pay off itself! 

Hope this helps Patrick!

Michael and Russel: Yes the vacancy rate is included within the operating expenses. 

This podcast is nothing short of amazing! I relate to this guy so much!!!!

Recently leaving the military last June I can understand this guys need to invest and utilize every single resource the military gives us. My Fiance' and I just bought our home in Las Vegas using our VA Home Loan and let me tell you; piece of cake! We didn't pay anything down and we got a rate of 3.6% which is hard to beat compared to a regular conventional loan. Our plan is to either move to Texas or Georgia in a year and purchase a 4-Plex with one of our VA Home Loan Entitlements since we're both Veterans and plan to live in one unit while we rent out the other three having our tenants pay our mortgage off for us. Then, after the refinance seasoning period is up in a year we'll use the other VA Home Loan we have and repeat the process in 2 years we will have 8 units, 3 years 16 Units, 4 years 24 Units, 5 years, 50 Units. We're both 26, by the time we're 35 I would like for us to have over 100 Units generating pure cash flow bringing in at least 60-80k/Month becoming financial free in our mid thirties.

Wow what a quick response from all of you guys that's great!!! The property details are as follows, please let me know if this looks like a goo deal or not. 

Purchase Price: 350K

# of units: 5 

Rent: $850/Month 

PGI: $51k/yr 

EGI: $45,900/yr

Operating Expenses: $10,692/yr

NOI: $35,208

ROI: 10%

Cap Rate 10%

Let me know what you guys think and what you think I should ask for.

R,

Jairmiya 

Hi Eveybody! 

If you had a colleague of yours inform you about an apartment building for sale, how would you analyze the deal? What would you ask of the owner to help you analyze the property to ensure it is a good investment? The only thing I would think to ask the owner is for the T12, pro forma, and rent roll. I also would probably ask the owner why he is selling the property so that I could create a win-win situation for us both, possibly seller financing if he has a good amount of equity in the building. Let me know what else it is I should be asking or looking for? Respectfully, Jairmiya 

Hi BP! 

If I were to go to a hard money lender for a commercial deal for renovation money, what are some of the questions I should be asking? Before anyone posts, I have a general understanding of the average questions that are asked such as what the rate will be, length of loan, and Points tacked on top of debt, the responses that I am looking for are complex HML questions that only seasoned investors know to ask, thanks in advanced BP Brothers and Sisters!

R,

Jairmiya 

Hi Everyone!

Currently putting everything together to do my first commercial real estate deal and I'm at the phase of raising funds. Reaching out to all my resources to see if any one has any recommendations as to who to use as an attorney to overlook and draft my PPM so that I can find investors, raise the funds required to close the deal and, and have everything in writing ready to go to prevent any legal discrepancies. Anything posted would be appreciated!!!

R,

Jairmiya 

@Tom S. How did  you get past the initial obstacle of low net worth and or liquidity in order to get approved for the commercial loan? Did you partner with another investor that already had an established track record? 

Hey guys, 

Was wondering if anybody had any advice to share about any complex seller financing/bank financing that you've done to close a deal? 

For example: If I found an apartment building that had a landlord that was burnt out but still around the age where they could still use some cash flow I would offer an opportunity where I could go to a bank and ask them to finance 70% instead of the normal 80% which is better for your LTV come time to underwrite the loan and then would ask the seller to carry back the other 30% and instead of paying a bank all 80% of the home and me having to come in with 20% cash I would come into the deal with absolutely nothing down while I finance the property through the bank and the seller. The bank wins with 70% equity in the deal, the seller wins because they don't have to pay capital gains on the entire purchase price and they get to collect steady cash flow for the next 30 years, and I win because I get the deal done with nothing down collecting the cash flow, capitalizing on the depreciation of the property and writing off everything in between.

Once again, this is just a quick example of a slightly complex financing strategy but this is the stuff I Love to talk about and learn about here on BP so please, if anyone has anything to share so that we can all learn from each other please write them here!!!

R,

Jairmiya 

@Don Konipol- Thanks a million for the advice. 

P.S. I knew that when you first start off, unless you have some type of experience in the CE arena, finding an investor to invest in deal with you without any or little of your own money in the deal is going to be next to impossible to do. I guess what I'm looking for is a quick phone call or sit down over a cup of coffee with someone that can give me a heads up about those things. For instance, if I were to sit down over a cup of coffee and here how some of you guys speak with the investors, what tone do you use with them, how to use the leverage you have on them and get them to believe that the deal is a good deal and they would get a great return on their money. How does one get started without any experience and a small amount of capital?

@Alina Trigub- What would consider to be a sizable investment in a Commercial Real Estate Deal?