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All Forum Posts by: Kujtim Beganaj

Kujtim Beganaj has started 6 posts and replied 12 times.

Post: Commercial loan seller credit cap?

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

@Will Lusk after selecting my lender and going under agreement, I found my answer.

My lender is a local credit union. Not sure if all credit unions allow it. I used a commercial loan and there is no cap on seller credit on commercial loans apparently. So we ended up increasing the sale price to the appraised value ($11k higher) and turned that amount into seller credit on my end, which helped reduce my closing costs.

Post: Commercial loan seller credit cap?

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

About to purchase a 5-unit off market. I believe it will appraise for higher than the purchase price we are agreeing to. If value comes in higher, I’d like to increase the sale price to the appraised value and increase the seller credit. Which in turn will lower my closing costs. The seller just wants a certain net and get out of it bc they are moving across the country. They would be fine with it (cousin in laws).

My question is, is there a cap on seller credit. I am seeing various things online?

Thanks in advance!

Post: How to structure seller financing on an 8 unit

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

I have an opportunity to purchase an off market 8 unit deal. I have spoken to two banks and they will only do 25% down and 1.35 DSCR (Debt Service Coverage Ratio). The bank will only lend up to $390k. The asking price is $660k and at 25%, I do not have near $165k to put down. I will continue to look at other banks.

What I do have is $45k cash, and a detached single family home rental property currently valued ~$215k with a loan balance of $126k. I am considering refinancing it to pull the cash out.

My main question is, how can I 1) approach the seller to do seller financing and 2) how can I negotiate and structure it to be fair to both parties step by step?

See below for the figures.

Asking price: $660k

Gross income: $74,412

Expenses: $27,110

NOI: $47,302

Cap rate: 7%

Any insight would be greatly appreciated!

Post: Buying without a title company

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

@Rolanda Eldridge Yes, That was the plan. We have an in-house title company at my office that the buyer is using and then I planned on using it myself. Thanks!

Post: Buying without a title company

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

I am  a Realtor in Lancaster, PA. I have been working with an investor who owns his kitchen, bath, flooring business on multiple properties now. He produces great product every time!

This Friday, we are settling on his most recent Fannie Mae purchase. My wife and I like the neighborhood and have been looking to purchase in that neighborhood to live in for quite a while. We would make our current home a rental. The property was my office listing and as a Fannie Mae listing agent I could not purchase it directly. After we went under agreement with my investor on this property, I started throwing the idea of purchasing it directly from him which would benefit both of us. Of course he will get his ROI on it since he will have his money tied up into it and I will still get a great price since he purchased it at a great deal. As well as using his guys to do some flooring or kitchen remodel and then negotiate it into the sale price so I do not use too much of my cash for the remodel.

My question is, since he is getting title insurance on it during his purchase, I do not see a point of doing the title search 45 days later until I can settle on it with a conventional loan. How can we avoid the title company fees and transfer title. If not, what is the cheapest way for both of us? I appreciate any suggestions or ideas!

Post: 2-Unit Opportunity

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4
Here is a potential opportunity I am considering. See below for the numbers... I would appreciate any feedback, thanks in advance. Selling Price: $78,000. Renovation costs estimate: N/A Total Investment: $78,000. Monthly Gross Property Income: $1,200. Yearly Gross: $14,400. Expenses: Taxes: $1,428. Insurance: $1,165. Utilities: water/sewer, garbage: $750. est. (tenant pays electric and gas) Annual City Rental License Fee $40/unit: $80. Maintenance: $400. Yearly expenses: $3,723. Net operating income (NOI): $10,577. Capitalization Rate: (NOI divided by total investment): 12.3% posting id: 4769234201 posted: 19 days ago updated: 12h ago View Original

Post: Questions to ask before buying first rental property

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

Really outstanding information @Eric Fernwood , thank you! I used the formula on the property and I plan on using in the future!

I spoke to the seller earlier. He is a RE investor motivated to sell the property to use the cash for his other flips he is working on. The main concern I have is the neighborhood. It is not in the greatest location where I would see myself walk around at night. I don't think I will buy this property, BUT I found a great investor that I can work with locally to begin my RE portfolio in the future. He seemed very knowledgable and very transparent about the properties and his business. 

Post: Questions to ask before buying first rental property

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

Thank you @Gerald Harris !! Much appreciated. 

Post: Questions to ask before buying first rental property

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

I just received a call back regrading a post on a house on Craigslist. It is a row house and looks to be in below average condition, will need some cosmetic work inside from what I could tell on the pictures. Before I call him back, what are some crucial questions I need to ask for my first potential investment property? Thanks in advance. 

Post: To stay in my career or become a real estate agent

Kujtim BeganajPosted
  • Lancaster, PA
  • Posts 12
  • Votes 4

thank you @Elizabeth Colegrove and @brandon. They are very honest and it has absolutely blown my mind with all the detailed info and success stories. I just can't stop listening to them! Another thing I have been thinking about is to finish my real estate license but not become a realtor. This way I would still have access to the MLS to find great deals to invest in. This is why I am leaning towards working at the new company with a higher income. The higher income will provide me more capital to use to invest. Not really sure if I want to flip a house first or make an investment property first.

Sure will keep everyone updated on what I will do!