All Forum Posts by: Kevin Connelly

Hi all,

I am working on a rehab project in the Miami County, OH. The county said we will need electrical and plumbing drawings to apply for our permit. My assumption is they are referring to architectural drawings for the building. 

Can anyone refer me to a solid architect who can help?

Details of the building:

- 19 Unit property

- Piqua, OH

- 3 stories

- 1950's build

LMK if any additional info will help.

Look for a referral to a good fast firm!

Hi All,

Looking for a referral to a small business/Real Estate lawyer in Southern Ohio/Dayton area. 

Looking for a little help with proper business formation, LLC structure, and liability coverage etc.

Thank you for the help!

Question for the community - 

I have tenants who have generally been easy to work with and have paid on time prior to COVID. However, the couple both work in an industry which has been hit hard by the lockdown restrictions in CA/Bay Area. 

Over the last 10 months they have requested roughly 6 months of reduced rent by 80% or greater.

Their most recent request is to have rent reduced to 80% until the shelter in place order has been lifted and they can resume working.(hospitality and hair stylist) Which of course is currently uncertain of when it will end.

Curious what other investors are doing? - Reduce rent for the foreseeable future or something more creative...?

Thanks!

@Al D. - Incredibly interesting takes on the nuances of the law. 

Personally, I don't plan on requesting forbearance. 

"[While that is apparently not your case, I hope to one day find out how many people took (unneeded) advantage of this provision, and invested the deferred payments in stocks or Bitcoin.]"

Super interested to see how many investors unnecessarily took advantage.

@Ming Wan this is an awesome response.

Thank you so much!

@Ming Wan you make a great point. I do know both of their jobs. The husband worked for Marriott as a line cook, and the wife is a hairstylist. So I’m sure they are both seeing significant pay decreases.

Would asking for statements be beyond my reach?

Can you tell me more about why forbearance could be used against me?

From what I understand, it does not hit your credit summary. Or is it with just this specific mortgage company I may have trouble in the future?

Thanks!

@Becky McDowell

We have a team located in Dayton who has toured the property.

What portion sounds too good to be true? It’s a great point but can you be a little more specific on the areas that seem to good?

Thank you!

@Chad Hale - Thanks for the note. 

I read through the legislation and unless CA decides to extend the moratorium, it may end by 1/31. However, by the looks of things it will likely be extended. Either way, I have reminded them they are still obligated to pay the full amount.

Thank you for the response. 

@Frank Lockett - I'll keep you posted as things progress! Best of luck!

Hi All,

My partner and I are working to put a 9-plex under contract for $285k with a $1k escalation clause. We have not gotten it under contract yet but we should have a decision by Monday. The property is essentially turnkey with less than $10-15k of potential work needed, and expected gross income of $4900-$5400. The strategy is to refinance after the 12 month seasoning period to pull the downpayment + interest owed to private money lender. We would not be putting any of our own money into the deal and this is not a standard BRRRR deal because we can not force appreciation with a rehab.

We are going to use private money to fund the downpayment @20%, roughly $64k with closing. Secure a commercial loan for the remaining 80%.

Private money rate of 12-15% on a 12 month term no payments, full repayment plus interest due at maturity.

Generally, I'd like to get some input if we are thinking about this the correct way or will we run into issues with one or some of the following:

1- Will we have trouble securing private money with no payments until note maturity?

2- Will we have trouble refinancing and pulling out ~$73,600 (downpayment+interest@15%)

3- What other scenarios should we consider?

Much appreciate!