All Forum Posts by: Neil Metzger

Hi Joel, 

Great questions, thanks for taking the time to post them! I bought the house next door, along with this 4 unit. I probably posted in the wrong place; I own the apartment unit, I am looking for a buyer/partner on it. 

We paid 249K, put 200K in renovation, and got it appraised for 625K. Only issue, the comps were over 15 miles away, there is literally no other 4-plexes within 10 miles that have sold in the last 5 years. The area is an affluent town on the outer suburbs of Washington DC.

County taxes (and my numbers) are based on the current assessment from the county. We purchased this in Dec 2017, and the appraised value declined from 2017 to 2018. I'll redo the numbers with a more likely estimate. 

I have units leased to two local restaurants that use the units for staff. 

We renovated everything, there is nothing needed currently. Tenants pay all utilities, I had them broken down by unit when we renovated (4 electric bills, 4 water/sewer bills).

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hey TJ, Congrats on getting started in real estate. I took the plunge a couple years ago. My company does property management and we help guide folks through all phases of identifying to managing their properties. We have flipped a few houses as well. I can walk the property with you, help you estimate the cost of repairs, and then complete them for you. We are extremely competitive on pricing, our goal is to help you be successful and then hopefully get your property management business. Shoot me a PM if you are interested and we can connect. 

Hi Mike, and welcome. I am currently working on a couple flips among other things in Pittsburgh.Good electricians are always in short supply, I often need them to help out from time to time. Shoot me a message if you are interested and I can show you what we have going on with our flips and renovation work. We are getting ready to put in a few more offers for the next round. I would be happy to talk a bit and share some of the insights I have from working in the area.

@Jeremy Pace  thank you for the quick response, we flip houses, and usually take out boiler systems and put in central air and heating. We also do a lot of work for out of town investors who simply want to get old boilers and furnaces repaired. The new systems almost always require some ductwork. I could keep them pretty busy, almost full-time

Hello BP, I have been trying for a couple months to find a good go-to HVAC crew or contractor. My company flips houses and renovates rentals for out of town investors in Pittsburgh, and I have been struggling trying to get some help in this field. Anybody have anyone good they can recommend?

B2R and Lima One are two options, but their long-term rates are not great, and they both have prepayment penalties for the first five years of the loan (or at least they did 18 months ago when I last worked with them) I worked more with B2R on a large portfolio for a previous employer.

hello Gade,  I live in Leesburg and travel to Pittsburgh each week. My company does flips, property management, and works with out of town investors. Love to chat with you if you are interested about doing some business up there. The drive is less then 4 hours, not that bad once you get used to it… 

Guys,

Thanks for the quick responses. @Percy N. I don't know how to ensure this, other then perhaps leaving funds in escrow, a PG, or some other type of insurance for the buyer. I had not thought about this as risky for a new buyer, other then the normal risk involved in any flip/R/E transaction. How does any business that is doing some type of equity transfer ensure this? Maybe there is some type of mechanism specific to R/E that helps here?

@Wayne Brooks, you are correct, and the preferred path is to simply finish the project. I am dealing with a client that is unfortunately compounding a tough personal issue with some pretty bad decisions pertaining to this property. 

@Jay Hinrichs, sounds like you are saying that transferring an LLC is likely not an issue, but to check with the lender 1st. Understood on the risk of having a PG involved.

Question about selling a business that is a single member LLC, has no debt other then a mortgage on a single home, and has secured a hard money loan via that same mortgage. The owner is dealing with personal issues and wants/needs to leave the country. Her company purchased a home in Oakmont PA for 105K, with 10K down. The as-is appraisal value of the home is 140K, per the appraisal. The ARV, on an already secured 65K renovation budget is 260K.

My role in this transaction has been assisting  the purchaser with the acquisition of the home, and then managing the renovation.  Project is just starting and going well. My company does consulting work that helps investors connect with and then manage properties in the Pittsburgh area, so full disclosure here is that I would love to find a way to get a new partner inserted to work this deal to completion. My company is currently doing the renovation work, and I would like to keep the project moving. 

My desire with this post is to determine the best way to advise my client to proceed; should she simply try to sell the property again? Or sell the company that owns the property? Or possibly get creative and add a member to the existing LLC that wanted to take over operations of the company? I am guessing there may be rules in the hard money loan that preclude simply selling the LLC that owns the loan, but I have been surprised in the past at what BP members come back with!