All Forum Posts by: Julian Sanchez

Julian Sanchez has started 18 posts and replied 92 times.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Decatur.

Purchase price: $150,000
Cash invested: $75,000

My first deal: went all in. Out of state, heavy rehab, almost fully vacant, rough area…
We made lots of mistakes in hiring the wrong contractors (now we’re pros’ at this part), had issues with city inspectors, one of the coldest winters on record and trouble finding the right lender for the constructions costs (we later got a local lender here in south Florida to trust us with a hard money loan $225k) 7 months of rehab. Finally, we were able to cash out refinance with a lender out of California

What made you interested in investing in this type of deal?

Great price and just what we were looking for. I wanted to start investing in commercial multifamily from the beginning

How did you find this deal and how did you negotiate it?

Trulia... local residential agent did not know anywhere else to market it

How did you finance this deal?

cash purchase, all my life savings up until that point; went all in.
We then got a 225k hard money loan at a 12% interest rate to do the rehab

How did you add value to the deal?

gave $500 bucks to the existing 5 tenants to leave.
We then proceeded with full demo and trash out of the whole building, intensive pest treatment, new roof by contractor who faked a license and lied to us...
tear out of that roof and new one by an actual roofing company, all brand new AC units, new flooring on the entire building, paint and new bathrooms. exterior landscaping, siding and paint done.
All 16 units then filled with tenants at average $800/mo

What was the outcome?

Appraisal came back at 1.1M, we were all in for close to 400k cash out refinance at 75%,
we created 700k of equity after it was all said in done...

Lessons learned? Challenges?

Remember the fake roofer? well, making sure he had insurance was the one thing we did right!
we submitted a claim when a large thunderstorm flooded the entire third floor the very next day his work was done.
The insurance came out and look at all the damage done.
Many months later after we thought it was a lost they came back and approved our claim, in the end we received a check for a lot more than the damages incurred :)

2 Votes

Originally posted by @Edwin Glaude:

I closed 1 deal with Bavex in August for 108k on 422 lyndhurst st in Baltimore. It went VERY smooth. They gave me 80% LTV and a rate of 6.25% over 30yrs, no docs and 2.5% fee and it was very fast. I worked with Mary Patterson and also had a few interactions with the CEO Dave as well. Everyone was professional. I also have 2 deals in the works with them. One closes Ina week or so for a portfolio loan and the other is a fix to rent. The portfolio loan is 4.95% given the size! And the fix to rent is 90% LTV on purchase and 100% of the rehab. I have no complaints at all.. Great company, fast and creative. I am so Impressed I have personally pitched them to be a lender on their team.

Good morning Edwin,

for the portfolio Could you please share the total terms and how it went with the process?

Looking to send them a portfolio cashout refi

0 Votes

Hey Javier.

Who was your loan officer at Ameris?

0 Votes

Jacksonville, Florida

Originally posted by @Austin M Margarida:

My preferred as of now:

Ameri's,

121 Financial (can work with 10% down payments, and no PMI, last I heard)

Jax Federal

Community First Bank

hey Austin. Who’s the person to speak with at Ameris and 121?

0 Votes

So April, which one worked for you?
looking at 17 units in Jacksonville

3 Votes

Just left Shawn a message. Closing 20 townhomes

0 Votes

@Greg Dickerson

asking the expert:

In central and south Florida there are a few Motels and large hotels being liquitated, above a common example of the room layout. What would entail to install a small kitchenette where that separate sink is?

What are the greatest difficulties in making these conversions from a full hotel to 50+ multifamily units?

Thank you much for your input and happy new year to all! 2021 is gonna be the best one yet

0 Votes

Originally posted by @Justin R.:

I lost a lot a large chunk of money (over six figures) on a wire at closing time. I high level criminal hacked into my agents email and was able to place email filters on the agent, the closing attorney, and myself. The criminal then created a "relationship" of communication with both the agent and attorney as they thought it way me. During the wire day the criminal intercepted the wire instructions, and changed the account numbers utilizing the same company format, design and logo. This was not some low end group you would expect, with bad grammar and an account in India. This was a high level group and they paid a "mule" to open a account at a local bank branch. I always contact the wire recipient upon sending, and ask them to notify me upon receipt, this wasn't enough.

By the time everyone realized something was weird and everyones stories didn't add up, it was 8 hours after the wire was sent. I immediately called the criminals receiving bank (Wells Fargo) and they confirmed they had received the wire from my account. I let them know what happened, but unfortunately they had to back their "client" and couldn't place a hold on the funds. I watched my money disappear within the next 48 hours as the criminal was paying "mules" again to make cash withdraws. The FBI was involved in this case and said this is now the new sophisticated "bank robber." Due to my case and a many others within a few month timeframe, new consumer protection laws have been passed. Unfortuanlty many agents/title companies/closing attorneys still do not follow best practices to this day.

Here is how I now send a wire EVERY time.

1. Receive wire instructions through email (secure source if available)

2. Print out the instructions, yes PRINT a hard copy

3. Call the recipient, ensure its the same person and phone number you have had some form of previous contact with.

4. While looking at your printed copy of instructions, have them read you the account and routing number live over the phone. Yes, THEY read to you. If you read to them they can be lazy and just say "thats correct." This has happened.

5. Request the contact you immediately after the funds hit their bank on a "pending" status.

Hey Justin, what was the outcome?

Did the FBI ever find the crooks? Did you somehow recuperate your money?

0 Votes

Hey

@Mitch Messer

I'll give you a call tomorrow, gonna be driving by looking for apartment buildings

0 Votes

Columbus, Georgia

Hope everyone is having a great weekend.

Here in town through Sunday looking at some apartment buildings.

Gonna be at Nonic for some beers in the evening if anyone wants to join and talk real estate, would be great to build some relationships in this town as we're gonna be investing here

Take care

1 Vote

Columbus, Georgia

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All Forum Posts by: Julian Sanchez

Julian Sanchez has started 18 posts and replied 92 times.

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