All Forum Posts by: Joseph Fradelakis

Not my own checklist. I GIVE CREDIT TO CAMAPLAN for the checklist.

1. Title Insurance

   Require title insurance on the property – make sure you know who owns it and what is already owed!

2. Professional Paperwork

   Use professional paperwork – promissory note, mortgage/deed of trust, Assignments of Rents, Confession of Judgment, Deed in Lieu of Foreclosure, Guaranty Agreement, etc.

3. Insurance

   Verify with the insurance company that you are insured in case of a property or liability loss.

4. Value

   Know the value of the security and the market conditions – evaluate at least annually.

5. Exit Strategy

   Know your borrower’s exit strategy – sell, re-finance, etc.

6. Plan

   Know what you will do if the borrower dies or walks away.

7. Key Man

   Do you have “key man” insurance on the borrower?

8. Financial Health

   Understand the financial health of the borrower – do you have any indicators that show the deal going bad?

9. Foreclosing

   Plan on foreclosing – know the cost, time, and who will do the actual foreclosure.

10. Draw Schedule

    Use a draw schedule if improvement money is in the deal.

11. Taxes

    Verify taxes are paid annually; unpaid taxes can wipe-out the loan.

12. Verify

    Verify that any association fees, senior liens, etc. are paid annually.

It's a start. It's up to the lender how hardcore they want to be. This list was from a website but even then they don't mention getting an APPRAISAL so you have an accurate LTV. And if there are goiing to be repairs and you're lending on the After Repair Value, you may want more homework for accurate repair estimates, etc.

@Pancham G. Greetings, yes let's meet over coffee.  Please let's talk outside of BP. 

joeyfrad@gmail     

@Nick Harvey What type of properties are you looking into?

@Melody Bynum Greetings ! I wouldn't mind, if a group meeting gets scheduled I can let you know. Just shoot me an email

@Account Closed

Hi Laurence,

I am a rookie on these forums so take this with a grain of salt,

Banks or lenders will still give you a mortgage, if you show them you have a contract for the sale of the original property. They won't give you the money immediately, but they will set everything up so that you get the money when you close on the property. 

Also if the LLC is a single member LLC you can purchase it personally or in the LLC. If it is not a single member LLC you will need to have the property within the LLC (unless the partners disagree which is a whole separate issue).

Also remember once you sell the first property you only have 45 days to identify the replacement property and 180 to close on that property. Also  make sure to buy a bigger or more expensive property or you'll pay tax on the boot.

@Scott Wolf Thank you very much

@Eric Calabrese I will take a look, thank you

@Sean Thomson Thank you, I'll look into it

@Deborah Hardin Thanks for the input

@Hem Kumar Thanks for that, that might be right up my alley

@Alex Franks  Absolutely. As long as you don't mind chatting with a new real estate investor, I will buy you all the White Castle that you CRAVE. Of course New York is huge so hopefully you aren't going to be in Buffalo! Shoot me an email anytime before you come next month.  

@Mark Graffagnino great! I will look into it

(I originally posted this in the Commercial Real Estate forum, not sure where it goes)

Hello everyone!

I am new to real estate investing. I own a 2 family house in Nassau County, Long Island. I live one one side and rent the other.

I currently run a CPA firm with my father and brother. I would like to use the money from our business to invest into real estate. I am primarily interested in multi-unit buildings as a passive income portfolio seems to make the most sense for me. Considering where I live, there are tons of overpriced single family homes and the property taxes in general are pretty absurd. The rent to property value ratio is pretty terrible. Any commercial or multi residential type properties I find online, the numbers look horrible (often negative cash flowing) when I run them on the Bigger Pockets calculator.

Therefore I assume out of town/state multi-unit properties in select and profitable areas would make sense. However now that there is a distance factor, it all comes down to the right property manager once the numbers work. I am new to all of this and it is very overwhelming. The concepts are simple, and I grasp them easily, but the reality of implementing this is daunting. I'm sure once I get past the first deal my whole mindset will change but I can't help feeling extremely vulnerable trying to do this without initial experienced guidance.

I can come up with $50-$250k from my business LOC and I have good credit so I don't see a problem getting conventional financing.

I undoubtedly want to buy my first multi-unit property this year (2016). If anyone has any suggestions regarding a good area for multi-unit properties and/or property managers they recommend alongside the area, any input at all is appreciated!

Thank you

I am interested in the Long Island meetup as well.

Hello everyone! 

This is my first post on this forum and yes I am new to real estate investing. I own a 2 family house in Nassau County, Long Island. I live one one side and rent the other. 

I currently run a CPA firm with my dad and brother. I would like to use the money from our business to invest into real estate.  I am primarily interested in multi-unit buildings as a passive income portfolio seems to make the most sense for me. Considering where I live, there are tons of overpriced single family homes and the property taxes in general are pretty absurd. The rent to property value ratio is pretty terrible. Any commercial or multi residential type properties I find online, the numbers look horrible (often negative cash flowing) when I run them on the Bigger Pockets calculator. 

Therefore I assume out of town/state multi-unit properties in select and profitable areas would make sense. However now that there is a distance factor, it all comes down to the right property manager once the numbers work. I am new to all of this and it is very overwhelming. The concepts are simple, and I grasp them easily, but the reality of implementing this is daunting. I'm sure once I get past the first deal my whole mindset will change but I can't help feeling extremely vulnerable trying to do this without initial experienced guidance.

I can come up with $50-$250k from my business LOC and I have good credit so I don't see a problem getting conventional financing.

I undoubtedly want to buy my first multi-unit property this year (2016). If anyone has any suggestions regarding a good area for multi-unit properties and/or property managers they recommend alongside the area, any input at all is appreciated! 

Thank you

Joseph