All Forum Posts by: John C.

I own 100 buildings, most of which are 1-4 units. Many of them are encumbered by a low ltv loan to a friend who helped me get started. I've agreed not to pay him back for 5 years.

I also own a few bed and breakfasts and million dollar STRs.

I am looking at acquiring two bed and breakfasts whose prior owners did not keep good records or shut down because of Covid. 2M and 3M sale prices. I know I can acquire them, get them running well, and SBA 504 refinance them in 3 years. Banks are saying no to me on initial acquisition. I am looking to find a low doc capital source to acquire them with a three balloon. I can bring about 100k for each deal to the table and some second positions on my other properties.

How would I go about finding someone to partner on these?

Certainly! Here's a more professional version of your message:

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Hello,

I already own two bed and breakfasts, which I have been managing for several years. When I initially purchased these properties, the mortgage was based solely on the real estate, with the business value being incidental.

I am currently in the process of acquiring a $2 million, 5 bedroom bed and breakfast located in a downtown area in PA. Annual revenue is 300k. We could add two rooms. This property is a historic home and is fully operational. It appears that a significant portion of the business's value lies in its name, website, marketing, furnishings and other intangible assets. We are buying the building itself, furnishings etc not transferring their Llc.

I have not previously applied for a loan that encompasses both the business and the real estate. The seller has requested that we differentiate between the property value and the business value in the agreement of sale. I understand that the current real estate is under-assessed and that the taxes will increase if we declare a higher property value, but this might be necessary.

Can anyone give input on how to accurately determine the business value versus the property value. Additionally, I would appreciate any advice on obtaining a loan that covers both the property and the business. While I am aware that an SBA loan is an option, I am considering alternatives as we have not yet filed our 2023 taxes and may not do so before applying for this loan. Our goal is to secure the best possible loan-to-value (LTV) ratio, ideally around 80%. Is there DSCR for Bed and Breakfasts?

Thank you in advance for your assistance and recommendations.

Best regards,

[Your Name]

Hello,

I am looking for a virtual assistant or company to handle STR inquiries, reservations, guest communications, cleaner and maintenance scheduling etc.

I would need someone or someone(s) to be available at most times to handle guests issues. Eastern time.

Need to be able to work with Pricelabs, Hospitable, Stripe. I'm OK with overseas.

I have 11 STRs and a 10 bedroom bed and breakfast.

Any suggestions?

Does anyone have Experience with Use Nectar Funding. Apparently they take preferred interest in your company or have you sign a UCC cash flow agreement. This allows you to access some of your equity without needing to refinance your first positions. They call it a fee, but it's effectively 22 percent interest.

Any experience with them or thoughts in general?

@Chris Seveney what do you mean?

Hello,

I own 100 properties mostly in the 150k range. I don't want to pull equity from these. I am looking to acquire 500k Short Term Rentals in PA and FL.

I'm looking to be able to make the smallest down payment possible. I have a lender offering 75-80k ltv. Is there a way to use preferred equity lenders to facilitate this goal?

Hello,

I have a building with a flat roof which needed to be replaced.  I paid a licensed and insured company, who is pretty big in our area, to replace it.  I'm not very familiar with how flat roofs work, but I'm going to relay what my handyman told me, based on what he saw and the account of a tenant who witnessed some of it:

-They tore the existing off the roof, did not replace any sheeting.

-Put down rolls of asphalt roofing.  Did not properly seal between the roles.

-Covered up the drains.  I'm being told that they brought new drains up to the roof, did not install them, and then took them back down.

-It rained, and the water from the rain stayed on the roof, up until 5 inches deep in some places.

-Ultimately, the water came through the roof/ceiling a soaked my first floor, insulation electric, sheet rock, flooring all ruined.

-The roofers do not return my calls.

-This is Pennsylvania, I have a copy of the contractors license and insurance.

-I have opened a claim with my insurance company, the adjuster has not inspected the property yet.

Any advice?

Anything without a deductible that doesn't require me to check tenant's credit?

I own 100+ properties in PA in my LLC which I am sole member of. I am always afraid that an insurance policy will lapse and I won't notice and then there will be a fire or something with serious liability or repair costs. Any way to protect against this?

Yes I have procedures in place to verify insurance on each property quarterly and have other asset protections in place. But I'm looking for something similar to errors and omissions insurafcd on myself

I have recently done cash out refinances on about 10 single or duplexes in Pennsylvania valued at about 130k each. Ltv around 70 percent. I'm looking for a lender who will take second position on all of these and give me about 150k cash, and preferably work with existing appraisals. All are held in the same Llc. Any suggestions on how to go about finding a lender who will do this?