All Forum Posts by: Jonathan Ramsuchit

Hey BP!

I just purchased my first duplex, 3/1 over 3/1. It had an extension that was unfinished but I have no idea if it had permits to be a bedroom. I figured I can turn it to a bedroom to snag some more rent out of it since im rehabbing anyway, but it dawned on me that I may need a permit to see if its a bedroom. I have to make a decision ASAP because I had contractors quote me and I need to get back to them  so it can be rent ready before winter. If someone can point me in a direction that I need to look in so I can find out how to proceed I would be very grateful.

Thanks,

Jonathan

I am looking at a 8 unit property that used to be a motel. It is now all residential units. The gross rents are 51k. List price is 389k.

I know that price is way to high but the reason is that the property hasn't had an offer ever. Its been listed for 3 years and I believe it is because the live-in property manager doesn't want it sold. Here is why I believe that.

I called the listing agent to see the property. The agent left the seller a message but the seller informed the live-in manager to handle it. The manager said that only 1 or 2 units can be viewed to a buyer. No one would buy a place without being able to see all the units so why would someone say this? The manager must have a deal such as free rent for managing the property. She doesnt want to risk loosing that if the property is sold. All inquires about the property get routed to her and she dismisses it by saying that you will have to buy it by only viewing 1 or 2 units. 

I persisted with my agent and told her that I need to see all of them. She left the owner a message again and the manager called back my agent and said that we can get into 4, BUT, we have to pose as insurance agents. WHAT?! The realtor told me that is common since no one wants to alarm the tenants. 

Does anyone find this weird? Posing as insurance agents? I'm not one to blatantly lie to tenants especially since I am hoping to be the new landlord, what will they think of me after????

Is their a way to look up the owner somehow and contact her directly to let her know that their is a conflict of interest when you property manager is in charge of speaking to the realtors?

Thoughts on this guys?

Thanks for the responses,

@Daniel Miller It is 110 years old and 3 story.

I am going to view the property on Thursday to get an idea for the amount of repairs needed and type of neighborhood . It is right across the street from an elementary school so im assuming that's a plus! Needless to say im skeptical about the age of this building. It cash flows like a beast so I guess that makes up for it.

I recently spoke to a few com. lenders and they generally all have the same terms. 25% down. 5year fixed 20 amort. I dont really want to put 25% down. 15% would be ideal but I dont mind 20%. 

These two requirements from a lender has me scratching my head.

• Name and contact information of the Attorney or Title Company you expect to use in conjunction with the purchase

• 9.We will eventually require evidence of insurance naming our bank as Mortgagee (after loan approval)

Do I need to get a title company on my own? evidence of insurance? I thought the bank gets this information for me. 

Also, since this is a short sale, how would a person default on this property if it makes so much money? Cant be high interest rates because they would have refinanced years ago. 

Hey everyone,

I'm looking to obtain commercial financing on a short sale/ multifamily for 400k . The property is 2 5 units. 

This is what one lender has told me. Tell me if this is standard.

• 1.A brief First Keystone loan application (attached)

• 2.A copy of the Sales Agreement signed by all parties, allowing you time to process and a financing contingency should you be unable to obtain a loan

• 3.Copies of the leases

• 4.A full rent roll indicting all expenses of the property

• 5.Full copies of your Federal income tax returns for the past three years (personal and any business entities for which you are a 20% or more owner)

• 6.A completed signed Personal Financial Statement (blank for attached)

• 7.Confirmation of funds to make down payment and pay closing costs

• 8.Name and contact information of the Attorney or Title Company you expect to use in conjunction with the purchase

• 9.We will eventually require evidence of insurance naming our bank as Mortgagee (after loan approval)

I have to find my own title company? I thought the banks handles all of that. If so how would I go about find one?

Hello everyone,

I am looking to buy a 2, 5 unit residential building for 400k. The owner is selling it as a package. The gross rent for both buildings is 84k and Noi before debt is 65k without accounting for reserves or vacancy. It seems like an incredible deal.

I would like to know if I have to do a commercial loan for this. I feel commercial loans aren't ideal since they have ballon payments and prepayment penalties, and Im assuming that would spread my depreciation over 39 years instead of 27.5

Is there a way to get a conventional loan either with a small bank, or portfolio lender that would maybe have friendlier loan terms?

It is also very important to me to be able to to a cash out refinance or HELOC on the property. If I took a commerical loan would I be able to take cash out of it similar to residential properties?

Thanks a lot guys.

@Derek Carroll thanks for the response.

The banks say that they can use 75% of the projected rents of the building that I'm buying if the buyer has at least 2 years of rental history on their tax returns.

Me and my wife could barely qualify on our own but using 75% of the potential rents would double the payment on a 20 year loan.

Hi,

I am looking to buy a multi unit with my dad and then transfer to me. I am using him because of his rental history on tax returns so banks can use the projected rental income of the property that I'm buying.

What is the best way to get the property back to me?

Thanks!

Thanks everyone. Found out it is a short sale. Makes me feel better about being so cheap! There is an offer on it right now and I'm thinking about offering the list if everything checks out once I visit it.

Hi,

I am looking to buy a multi unit with my dad and then transfer to me. I am using him because of his rental history on tax returns so banks can use the projected rental income of the property that I'm buying.

What is the best way to get the property back to me?

Thanks!

Hi everyone!

I am looking at a 10 unit purchase, 9 units in one building and one separate home. All but 1 unit occupied

list : 399k

GRI : 77k

Vacancy : 10% =8k

management : 10%= approx 8k

reserves 10% = 8k

taxes = 8k

insurance = 4k

loan terms: 20 year @5% with 25% down = approx 23k

It was built in 1904. the area is low crime, right next to an elemetary school, and the area doesnt have other buildings like these. It seems too good to be true!

My concern is an investor is selling this property, so why are they walking away from this gravy train unless something is wrong? The Realtor said a business partner is moving but that can be just a made up story. How should I approach this.

I'm 23 years old and personally have no exp in rental real estate. I have been reading and listening to BP for months now and have a BA in Finance. My father owns 3 rentals and is an electrician who is extremely handy and knowledgeable in that area. Its very scary to plop down nearly 100k on a property but with such a great return, it is extremely tempting.

Feel free to offer advice/ criticize as harsh as you possibly can :]