All Forum Posts by: Jerry Westhoff

Thanks Chris 

How do you think it would have to be structured?

Would they have to finance the entire deal? Like roll everything over to a bridge loan? 
Is it possible just to secure the additional money needed in repairs? 

My business partner and I purchased a 4 plex property in Grand Rapids Michigan.  
we had a friend of the family finance the purchase with a 2 year loan at 8% interest.  The property is a complete gut/remodel.  We are self financing all of the repairs and have completed 2 units after 8 months.  We are self performing the entire build with exception of mechanical sub contractors.  ( I own a home remodeling company)

We are getting to the point of being maxed out financially and will need to restructure the deal somehow.  In order to complete the project we will need another 100k roughly.  
Do banks offer a type of loan that will allow us to pay off our investor and finance the remaining repairs?

Will they allow that with a form of construction loan?

My original plan was to cash out refinance at the end of the project but we need additional funds to finish like I previously stated.  

Or will a HML provide us a loan just for what we need to finish, then we could cash out refi?

not really sure how to proceed so any advice would be appreciated thanks.  

@Caitlin Muldoon

I am jealous that you live in Colorado.  I used to live in Avon.

It is funny that you shared a link to that property I actually just saw that place the other day and thought to myself man that looks like a decent deal.  Unfortunately I am still saving up for my next place so I cannot move on anything right now.  

As far as the neighborhood goes I would definitely say there is value to be had in that area.  Especially if you are thinking long term.  Serious gentrification is occurring in Grand Rapids.  Rent is continuing to rise, even in locations that were considered bad before.  This forces lower income earning individuals out of the area.  

I ended up purchasing a duplex on the Westside and could not be happier.  I think the westside has a ton of potential and businesses continue to pop up over there, ie. New Holland Brewery.  

It is so easy for me to see how neighborhoods will transform in the future.  I am all about taking some risk and getting ahead of the herd.  I would buy 50 houses south of wealthy and 50 houses on the westside if I could ;)

Good luck  

I am looking to hire a company or independent contractor to mow the lawn for a duplex downtown Grand Rapids.  I have talked to a few companies but they want to charge like $30 a week and my lawn is very small.  Maybe somebody knows of a local guy that does work like this?

Regards,

-Jerry

Perfect.  Thanks @Chad Hovermale

One of my tenants has had a car sitting in the driveway for over three months and I believe the tags are out of date.  I spoke with him and he said the car is broken and he is trying to sell it. 

Unfortunately I inherited these tenants with a lease already established and the lease does not address this.  

Any ideas on how to handle this would be great.  I really do not want broken down cars in the driveway.

Regards,

-Jerry

Perfect thanks for the help guys.

Is there a way to check Consumers and DTE to find out if tenants are paid up on their utilities?  I am trying to find this out for one of my Grand Rapids units.  

Regards,

-Jerry

Thanks Carlos.

Unfortunately the lease they signed is a long one.  

The lease end May 2017.  I will be doing a lot of repairs to the property so I was going to use that for my reason behind it.   Unfortunately there is no verbiage relating to common areas.  They do currently have multiple pets at the property and the lease clearly states no pets so I feel like I can possibly use that to my advantage.