All Forum Posts by: Mauricio Ramos

Hello,

Could you please advise on how to find a private lender that is willing to lend money for repairs on a multi family with a 2nd position as security? I know that lenders see this as more risky, so my questions is how to present the deal to such lenders to make more attractive to them? What kind of interest rates should i be expecting to pay? Is interest only an option? I am looking for around $60k.

Thanks in advance!

Mauricio

Hello BP,

I am working on a deal with a seller willing to owner finance a 6plex. As part of my terms, i am asking for 12 months interest only at first and then start paying off the loan to the seller with interest. The seller's questions is:

Is there a tax advantage for the seller on the 12 months interest only? In other words, in 2018, the seller would only receive downpayment plus interest payments, no principal; will the seller have to pay taxes con all the income, or just the downpayment?

Thanks in advance!

Mauricio

Jocelyn, i am with most of the people above wondering why you would be so in love with a property with negative cash flow AND you should not invest with your feelings, you should invest because the numbers make sense. That said, if you are still going to buy it, a useful negotiating term to use that will buy you time is a MORATORIUM PERIOD on an owner finance. Close on the deal with a down payment and your first monthly payment will not be due until say 3 or 6 months from closing. That will buy you some time to reposition the property and hopefully break even when the first payment is due.

Good luck,

Mauricio

8plex for Sale in Kingsville TX, 5 blocks from Texas A&M University Kingsville. 

• 4 EA 2B/1B
• 2 EA 1B/1B
• 2 EA studios
• All units occupied (students)
• 6mo leases in place
• 2 EA CMU buildings
• Asking $169,150
• Current NOI: $21,741
• Projected NOI year 2: $31,019
• IRR 42.27%
• Avg Annual return: 77.32%

This is a great opportunity near a University established almost 100 years ago. University is not going anywhere. This is an investment for life. 

For more info

• DM me
• [email protected]
• Call Mauricio at 210-802-5785

27 space MHP located in south San Antonio for sale. City Water, City sewer billed back by 3rd party collections company; trash and electric directly billed to tenant by CPS energy. 22 Park Owned Homes ( 2 bed $710; 3 bed $780) 5 Tenant Owned Homes ($350/mo; can easily increase to $375/mo)

3 Billboards 2.5 Acres No seller Financing.

Total Operating Income: $115,000 (If all homes were tenant owned)

Total Non-Operating Income: $67,440 (Rent homes income)

Gross Income: $182,796

Expenses: $34,968

Net Income: $147,827

Net Operating Income: $95,454

Sales Price: $1.3 Million

email: [email protected] for signed NDA and full investment docs

Hello,

I am looking for a private money loan for repairs on an active 9 unit apartment building. Asking for $50k, willing to pay 8% interest only for 4 years. The complex was bought through seller finance, therefore the seller has 1st position, this loan would take 2nd.

Repairs as follows:

• New roof $25,000
• Electrical Panels $9,000
• Rehab the 10th unit to make it rent-ready $16,000

Thank you,

Mauricio

Chris, 

Congrats on this deal. I would concur with Nick on the percentages. A 70/30 split seems reasonable. You might be able to get a little bit more as long as the IRR and the Anual Returns are still attractive for the passives.

Besides the asset management fee, you can also get an acquisition fee, but again, without killing your IRR and Returns.

What you are trying to do is called Deal Sponsor or Asset Manager. 

Good luck,

Mauricio

Hello BP,

I got a 9unit apartment complex deal and it will be owner financed with less than 10% down. Complex near San Antonio TX. I am looking to close before the end of the month. The roof and some electrical work will have to be redone within the 1st year which adds up to about $45,000. 

I am considering the option of borrowing from a private lender the money for the repairs hoping to find an interest only loan at about 8%-10% for 3-4 years and offering 2nd position (seller has 1st). If i can lock in the lender before i close, then i will try borrow the downpayment + closing costs + repairs which adds up to about $66,000.

I have never borrowed from a private lender like this, so my question to the network is, what is an attractive way to present this to private lenders?  Maybe other terms that might be better for both the lender and me? Any suggestions how/where to find some private lenders in San Antonio TX? Any other ideas where to find this kind of money with those kind of terms?

In talking to some conventional lenders, they are not interested in something like this as they wont be having 1st position. 

Thanks for your time!

Mauricio

@Lee Ripma just what we were talking about earlier.