All Forum Posts by: Konnor Lange

Hello,

We have set up a business account for our LLC, owning a multi commercial property. This LLC has 5 members. Will a single account that pays dividends to members via check on an annual basis a "normal" way of doing distributions?

Thanks.

Thanks for the response. Yes I would assume the mortgage and use an additional loan from a friend towards the down payment. Is this common practice? I would then pay him a specified return each month as well as a percentage of the cash our refi. The mortgage includes rehab and the estimated ARV would provide that initial investment plus a lot more. Then once the investor is paid back I would own the property with a nice cashflow and 25% equity plus cash for another investment. Refi estimated to produce $100,000.

Hello,

I have a deal that I'm facilitating that's off market. The deal requires around $60,000 cash as down payment on mortgage. I'm planning on providing $15,000 cash along with taking on the mortgage and managing the property. I'm curious to know how to structure this deal with an investor. Assuming we agreed upon 50/50 split on cash flow and an investor exit at refinance with me taking on 100% ownership, what kind of agreement is required to facilitate those distributions and exit? Would this be a separate contract or would we be better off putting the property into an LLC with 50/50 ownership with a operating agreement that explains distributions and exit for the investor. This is my first deal. Any help is greatly appreciated. Thank you.

Hey Everyone,

I'm completely new to commercial real estate investing but there's a deal that popped up near me that I believe has some potential for a double "hack." This building is ~$240,000 with two large units on the bottom. 1 is an office space that currently leased for ~$1,300/month. The other is vacant retail space. Both about 2,500 square feet. There is then about 4,000 sf of space on the top floor which would be developed into two apartments/lofts. I currently have a small business that is looking to open a satellite retail location which I could plug into the vacant space on the 1st floor. I would also be able to move into one of the developed apartments on the top floor. The owner of the building is a retired doctor who lives out of the state and is willing to do seller-financing. He would require a 10% down payment (~$24,000) @ 5.5% interest with a 5-7 year balloon. I will need to build out the two lofts and am awaiting an architect for plans to then start shopping for contractors. Does this seem like a decent deal? I want to know what the major steps are that I need to take from this point on. I'm definitely interested in the property. Would a LOI be necessary so that I can touch base with the city for potential abatements/grants and to ensure development would go smoothly? I will need more money for the renovation/build on the lofts so I will need another loan separate from the property itself.

Hey Everyone,

I'm going to view a commercial property with 4,500sf of undeveloped space on the second story that we may turn into lofts/apartments. I'm just curious as to what data I'll need to acquire so I can have an architect accurately design a layout for the space so I can begin getting quotes from contractors to estimate the cost of the projects. I planned on taking plenty of photos as well as measuring the entire space. Any help would be very helpful.

Thank you!

Hey Everybody,

I’m completely new to commercial real estate investing but there’s a deal that popped up near me that I believe has some potential for a double “hack.” This building is ~$240,000 with two large units on the bottom. 1 is an office space that currently leased for ~$1,000/month. The other is vacant retail space. Both about 2,500 square feet. There is then about 4,000 sf of space on the top floor which would be developed into two apartments. I currently have a small business that is looking to open a satellite retail location which I could plug into the vacant space on the 1st floor. I would also be able to move into one of the developed apartments on the top floor. I’m really just looking advice on how to structure the deal. I only have about $15,000 cash but I’m very confident I could get enough for a down payment from friend investors. I’m assuming the entire deal would cost around $325,000 with the apartments. Are there any financing avenues you guys would recommend for me for a deal this size?