All Forum Posts by: Michael K Gallagher

great sentiment, especially now, after the hype train of the covid, its interesting to see who is sticking around, keeping their heads down and putting in the work.

we are still doing deals in commercial but mostly in the retail/med space.  although we sometimes do an office lease deal here and there.

Hey @breeya, I don't have a specific connection for you but if you are closing or working on a deal from out of state you'll want to make sure to ask if they can close remotely. Usually a good investor friendly title company that can close remote will be sponsoring local meetups and events, and then they usually have a rep you can talk to there and see if you vibe with.   

"light clean out required once tenant moves out." 

@Mike Terry sounds like a pretty good argument to go after the property, I think your question is more along how to value it, and account for the deferred maintenance.  Sounds Like you have the operational experience to turn the place around and make it a winner.  as far as figuring a proforma here's my logic.  Not sure if its "too basic" but its where my mind goes.

- I'd start with the end.  What do you think market rents are for a turned unit, or fully improved property?  Then figure aprox what your refi numbers/value would be given those rents/expenses at a stabilized point,  and that to me is your "all in" 

- From there it becomes an exercise of what it will take to get to that point or property condition? and subtracting that from your end value + whatever equity buffer you want to account for.

- If you're going after a seller finance deal I think once you understand what it will take to get to a finished state its simply a matter of aligning your needs as far as short term cashflow with the current rents/situation, with the net number the seller needs after the refinance.  

again that's just how I think about it, maybe its over simplified, but that's where my logic goes.

Hey @Tuan Tran welcome to the forums!  a great place to start for these types of services is a local investor agent/broker.  The forums here are a great place to find agents or people that are working in the markets you are interested.  

Alternatively your market may have an agent finder here on BP, that's always a great resource too.

@Ricardo Navarro great deal, and thanks for sharing. $260K is a pretty decent ARV for the Cleveland market! Can you dig into a little more on the novation, why did the seller pick that strategy say over a cash offer?

 I'm not in that market so I can't speak specifically to it, but to me the deciding factor would be what the surrounding units and area has.  If this is common for the area specifically, and the tenant pool is used to this, then it may not be a huge deal.  My market of central OH has some isolated areas that are like this, and in those areas, its generally accepted as "the way it is" but those areas are also very desirable and "hip" so there is a give and take persey.

 see this all the time in and around downtown columbus OH, we have frindge areas that are getting rehabbed and flipped like crazy and then the new builds come in.  We actually just had several go in on Livingston ave on the west side where I'd not normally think would be desirable, but they look great and really brought the block up.

So I'm a huge fan personally from seeing them go up in my own area.  

 I'm not sure what leverage you would have outside of taking legal action, these are generally things that should all have been on the closing statment along with deposits etc.  You may be able to lean on the title company if they missed something, but generally if the deal closed and its not an issue of material disclosure or title or something its generally your issue now, the owner doesn't really have an obligation to comply if they closed according to the CD you signed.