All Forum Posts by: Kimberly Harten

@Ben Wilkins Thank you for your thoughts and advice!  I'll check out the deposit idea to verify the details of this for my state.  I certainly do not want to do anything shady.  Your advice on buying one property so that he would get a chunk of money and then hold the rest under land contract was in the back of my mind for the reasons that you mention.  Thanks!

I am convinced that my future is in real estate investing and am thankful for being part of this forum.  I started looking for deals recently and stumbled upon a property with 9 units  Ran the numbers in the appropriate calculators and the numbers make the purchase feasible/profitable.  I ran the numbers by my commercial loan officer who also gave it a nod to get financing approval based on my good credit score, my long-term relationship with the bank and the deal itself.

I then stumble on to the fact that the owner is selling all of his MF buildings and retiring (78 y.o).  Three of the buildings are listed.  Five are not listed, RE Agent indicated they were going to be listed after the 1st three are sold.  In the short interim, I find out that a person is presenting a land contract deal to the owner for all properties.  However, that offer does not come to fruition and I look at all properties yesterday.   

1.  Numbers work

2.  Know that the seller will entertain a land contract (considering this presentation as a group but having separate contracts for each property)

3. I am funded well enough to purchase the original one at 85% LTV with my bank

How can I creatively work this deal to fruition?  Any ideas that I can pursue?  I'm thinking about pro-rated rents that I will receive at closing so a thoughtful closing date selection can assist with more cash to use at closing.  Security deposit transfers - I could technically use this and then replenish the deposit accounts, right?  For a moment a considered a master lease - but I really just don't see the value in this for me in this situation.

I welcome any and all feed back to help me get over this hurdle.

Thanks,

Kim

New investor in Northern NY. I have an 8-unit residential pending contract submission for 120k.

ARV is 150k; which will likely be accepted in northern NY. If appraisal comes in the same or more I'll have at least 20% equity.

Financials on property are good according to commercial loan officer pre-contract conversation.

My Bank will lend up to 85% LTV on commercial.

Do I have to provide my RE contract to the bank as part of the commercial loan process? I'm trying to understand how to get this process accomplished without putting a 15% down. I have the cash but I'd rather keep it.

Any advice on if or how this works? I've heard that people establish their down payment by the seller holding a second mortgage. How does this get contracted and reported to bank. Or does it even have to be reported. The point in a down payment seems to be skin in the game concept BUT if I can negotiate a contract for instant equity didn't I put skin in the game?

Any advice on how to accomplish keeping my cash instead of using it for a down payment?

Thanks

Kim

New investor in Northern NY. I have an 8-unit residential pending contract submission for 120k. ARV is 150k; which will likely be accepted in northern NY. If appraisal comes in the same or more I'll have at least 20% equity. Financials on property are good according to commercial loan officer pre-contract conversation. My Bank will lend up to 85% LTV on commercial. Do I have to provide my RE contract to the bank as part of the commercial loan process? I'm trying to understand how to get this process accomplished without putting a 15% down. I have the cash but I'd rather keep it. Any advice on if or how this works? I've heard that people establish their down payment by the seller holding a second mortgage. How does this get contracted and reported to bank. Or does it even have to be reported. The point in a down payment seems to be skin in the game concept BUT if I can negotiate a contract for instant equity didn't I put skin in the game? Any advice on how to accomplish keeping my cash instead of using it for a down payment? Thanks Kim

Thank you all for your input.  Still working this one.  I'll see how the inspection comes back before moving forward to insure that there isn't something that I am missing.

Good Morning,

I am a new investor looking over a 9-unit deal.  I used the buy and hold analyzing tool and the results are:

Monthly Income:  $5067

Monthly Expenses: $3992  (in expenses I included 10% for each- vacancy, capex, repairs & management)

Monthly Cash Flow:  $1074

Cap Rate Projection: 14.45%

I'm looking at about $119 per door per month in income.

List price is $155,000 on the market for over a year and the owner has several multi-units and everything is for sale.  Older business man.  Property is fully rented.

So where do I start on my offer.  I'd like to be buying around $130k however, I would also like to negotiate the seller holding some of the paper so that I don't deplete my cash on hand and can move on into another deal right after closing this one.

Any suggestions?  Does my deal look viable?

I appreciate any and all advice.  

Thank you,

Kim