All Forum Posts by: Nick Garzini

Thank you everyone for the great input. I am going to start calling some local banks tomorrow. I am hoping to find some of the down payment from my HELOC. I think my challenge will be finding a bank that is okay with that.

I have my first commercial property under contract in Crystal Lake (North of Chicago), IL and I am looking for recommendations for lenders. I am honestly not really sure where to start for commercial loans. I have a backup private money option available, but would like to try for a conventional loan. Any suggestions are appreciated! A few details: Looking for $350k loan Projected DSCR: 1.47 Also - the 2 ground floor retail spaces have 2-year leases. The 4 residential units are occupied, but month to month. The tenants are willing to sign new leases. Should I get the current owner to execute new leases to aid in financing? Thank you!

Joel Owens and Ronald Rohde thank you for the responses. We reached out to a few more inspectors and GCs and found somebody that seems very qualified, has great reviews, and is fairly priced. Inspection scheduled for this Friday!

I am in the process of getting my first commercial property under contract. It is a 6000 SF 2-story building with 4 residential units and 2 retail spaces located in the suburbs north of Chicago. I just received a $1200 quote for an inspection, which is quite a bit higher than I was expecting. I am looking for some input from others with experience regarding the going rates for commercial property inspections. Thank you!

@Marcin Nurek I am partnering on this deal with someone that is located in the area of the project.

@Adrien C. Thank you for the recommendation.  I found Don's online through a quick google search and was planning on contacting them.

I have an offer in on my first deal (fix and flip) located in Crown Point, Indiana and I am looking for recommendations for General Contractors and Foundation Inspectors/contractors. The house is a HUD property, so there is not a full disclosure form. I am figuring on doing a full gut and rehab, but I want to get the foundation checked out before releasing inspection contingency.

Thanks in advance for any help you can provide. 

-Nick

@Crystal Smith Thank you for the input.  I agree that buying only for the possibility of appreciation is a bad idea.  Since this is my first deal, my main goal is to get started!  While I am not too excited about a deal that only cash flows a small amount of money, I would be more willing to make the move if there was some opportunity for appreciation...in addition to the experience I would get (which is really my main goal for my first deal).  Thanks again!

Hello BP community! I am looking for a multifamily rental property in the NW suburbs of Chicago (Oak Park, Forest Park, etc). I live in CA, but my wife grew up in the area and we have family and friends that still live close to the area. My strategy is to use my HELOC to fund the down payment (I have over $400k in equity in my personal residence) so I am essentially putting none of my own money into the deal. I am accounting for the interest only HELOC payments when I analyze a deal.

Here are my main concerns/questions:

1) Most deals I can find are projected to cash flow less than $100 (assuming 30 year fixed, 5% vacancy, 10% maintenance, 5% capital expenditures, 10% management fees, HELOC interest). Is it worth doing a deal that is almost cash flow neutral? I get nervous being that close to a negative cash flow.

2) It appears there has not been much in the way of appreciation in this area.  One property I am looking at sold for $226k in 2002, $115k in 2011, and is now listed for $225k.  I know appreciation is not something that should be relied on, but if i am going to buy a deal with almost $0 cash flow I want to at least have the possibility of recognizing appreciation.  

Thank you in advance for any input you can share!

Somebody is doing that to a house 2 doors down from me...but they paid $1.2 million for the house before doing it. Crazy...

Hey everybody.  I am brand new to BP and want to introduce myself. I am 32 years old and married with 2 children under 3 years of age. My wife and I bought our house in Q1 2010 and it needed a LOT of work (new foundation, no source of heat, no kitchen cabinets, a detached garage that was falling down...the list goes on and on). We have since nearly tripled our investment. I am a civil engineer that works in large commercial construction, so I am not scared of a construction project. I have been interested in real estate investing since high school, but I have never been able to get myself to pull the trigger. My parents own a few rental properties and are willing to partner with me on investments as financial backing. 

My main reason for wanting to get into real estate investing is because after 10 years of working in construction management and having my income determined by somebody else, I am ready to take control of my own destiny.  I am hear to expand my knowledge, establish some local connections and jump start my endeavor in real estate investing.