All Forum Posts by: Nick S.

Hello all, 

I have a large 5 unit building that is all separate electric baseboard heat. The building consists of 3 units that are 3/1, and then two 1 bedrooms. It's two floors. The left side of the building is two of the 3/1 units, and the right side first floor is a large 1/1, and a small 1/1 in the rear. The second floor on the right is the final 3/1 unit. The 3 bedroom units are all about 1,400 sq. ft. 

I am having issues with tenants complaining about the electric baseboard not being warm enough in every unit except the small 1 bedroom rear. 

I am planning on installing two gas forced air heating systems (about 3k total each). One in the first floor left unit that is 3/1, and one in the first floor right large 1/1 unit. 

This will definitely do well for those two units, but I am curious as to whether or not it will help the heating/temperature on the second flood apartments. Has anyone seen success with this? Not full heat, obviously, but at least making their apartments a little bit warmer during the winter months and lowering their electric bills slightly.

Thanks so much!

Nick

Josh, 

Definitely a strategy to consider, but I'd also look at your idea in a different way:

What I suggest is looking at expired listings in areas that you want to invest. To do this, find a local real estate agent to work with and ask them for the list of expired listings. Then mail letters to properties you would want to buy, and make them offers if/when they call you back. This way the agent's commission is not involved in the sale price for the seller and you may get an even better price. Find their motivation for selling (they're very frustrated at this point), and then use that in your offer/negotiations as well. I've found a few awesome properties using this method. 

If you end up buying one, I'd also pay the agent that gave you the list a little money for their time for the list. Or just get your license as well :)

Nick

Hey guys, 

I recently got a lead on a distressed sale for a house in Puerto Rico. If anyone has any experience wholesaling in this are or has cash buyers in the area please reach out to me with a number I can call to discuss. 

I'm helping out a friend that has family down there. The home is located in zip code 00956. 

I have more details about the home. If anyone can help me out let me know! 

Thanks!

Thanks for the responses! I was able to take the advice and find some material based off of the thought processes. I plan on meeting with our accountants and attorneys in regards to setting it up. If anything comes of substance from that I'll add it to the thread. 

Hello all, 

I currently own a 5-unit, and two single family homes, and have my real estate license. I just got approval for funding that will allow me to purchase 8 single family homes, and generating about 9k in income per month on top of what I already own. I just have a few questions for structuring everything. 

I will hold the properties in an LLC that I own, but I want to start an S-Corp since other members of my family also own real estate. The goal would be to have the S-corp manage the properties, and we can all receive salaries out of the profit that the properties produce. This will then allow us to get more loans, and continue to build the entire portfolio.

Is this the correct move? What have others done in this situation that was successful? Are there other benefits of an S-Corp that I am missing? 

My 5-7 year goal is to buy enough real estate to generate 1M+ a year in gross income, and allow us all to have salaries as employees of the S-corp. 

Thanks for your help!

Nick

That is exactly where it stands right now. 

It seems like the only thing they have on me is that they did not change the original mortgage application information and I didn't catch it at closing. The private loan increased in value, and we obtained two different properties, and this wasn't listed. I guess this is where I'm actually "caught". Even though it was not intentional. 

I'm refinancing because the business is starting to gain serious momentum and I don't have the time to threaten them and stop paying the loans. I wish it was a few years from now and I would have an entirely different approach and force them down a sticky road. 

Either way, this really clarified a lot of the entire process to me. I really appreciate it! I'm glad this will be over after the refinance.

And I definitely want to raise hell on this lending institution after the loans are refinanced, but that doesn't even seem like it's worth my time. I feel like real estate investors always have a bad reputation, but the lenders are the ones that really screw everyone. 

Raj, that's really interesting with Citi bank - Wells Fargo took our one credit line from 190 down to 140 for no real reason either. 

The subject property is a 4 unit with a garage (1 car detached garage) that is on the same deed, but holds a different address. We use the garage for storage, and it adds probably 5k in value to the deed. 

I agree with you in that it seems they're attempting to build a case for fraud against me. 

This entire situation occurred about a month ago, and I'm a few weeks away from having them refinanced just in case they call them "due". I keep on receiving "extensions" from the loan company, but I'm starting to feel like there's nothing really they can do on their end, and have to wait for me to refinance the loans. 

My concern is that they call the loans due and try and sue me for damages. I just don't understand how a company can fund a loan, then not be able to sell it, and look into it extensively and essentially just "make up" a case on the person they lent it to. They fired the underwriter in the entire process, and admitted this to me.

To clarify:

The loan refinanced prior to these two loans being funded was a refinance with a private lender. 

The loans they're coming after me for were two cash out refinances on properties I own free and clear.