All Forum Posts by: Sam Ojo

All depends which cost you less, Also your self awareness. With private money you should make sure your capable of executing being the fact a traditional lender has guidelines and rules for each part of the process. Private money should/would be the better option but comes with a larger responsibility.  

@Artem Shum Is this an SFR or multifamily? I would consider a multi but if not an option I wouldn't consider the single an Investment until its producing income (option renting a room or two/ possible air bnb). The information provided doesn't really give a good assessment if this is a good deal or not. Your purchasing at its face value which equals no equity. I would use apps like zillow,realtor etc.. to find comparable that have closed or find a realtor to get you the info. Also don't be afraid to offer lower than asking, As far as cash flow most are satisfied $100+ a door so your not in a bad spot.

Good Afternoon BP family,

Hope everyone is thriving and still learning for a better future.

Im looking to BRRR A commercial multifamily that looks like renovations were started but ran out of funds. Interior down to studs and has been vacant for a year. Great location and less than a mile from a Hospital.

Property was listed on market prior to pandemic but was removed do to access difficulties for potential buyers, Even though I was able to find a way in and document most work needed. Lender Has held note over ten years prior to last purchaser in 2009 and still holds after last Llc forfeited. Im looking to purchase, rehab and hold but would like to discuss options with lender and make it a performing asset before speaking with Lenders I already work with. Does anyone have advice or experience on how to go about doing so the proper way?? 

PS. I do have funds for A down payment 

@Cameron Tope Very True, appreciate the insight brother. 

Hello everyone,

Hope all is being safe during this crisis but still collecting checks.

I'm looking to refinance my first BRRR SFR project. When purchased under the HML, using my Llc gave me better rates upfront.

Now that I’m ready to refinance, commercial/ portfolio loans seem to be my only option. Although building a relationship now with a commercial lender is good for future business.

Is the better option, to transfer ownership under personal name to take advantage of Fannie/Freddie options then back under Llc??

Thanks in Advance,

Sam

@Brian Burke Thanks for taking the time to reach out. I appreciate the insight and wisdom. I’ll be taking a tour of building soon and requesting rent rolls, expenses and tax returns. As I’m working on a  deeper due diligence I will make sure that would be an option before moving forward. I enjoy the long haul so I’m more focused on holding than selling individual units. 

From our conversations the seller seems to be comfortable with his buildings producing. He’s 91 walking and still self managing with help. Owns a large variety of assets in this area and looking to sell because his kids are older and have there careers spread across the country. So leaving them real estate doesn’t seem to be an option. 

Thanks again,

Sam

I had recently met with a older gentleman in regards to 6, 5 unit buildings we spoke of in the past. He informed me they were recently sold for 1.8m.

After building some rapport, he offered a 23 unit brick complex in a solid location on the New Britain /Kensington line for 300k down then eventually lowered it to 250k down for a length of 10yrs @ 6% and wants 55k per unit.

He’s currently receiving $750 each unit w/ utilities included (rents vary from $850-1000 w/ utilities based on location in town). He stated his asking price is based on current market. After some small due diligence I noticed the units are spread between 4 buildings in which 2 of each share a common hallway/entrance. Some units are sold individually as condos and he owns the rest.

Besides bringing rents to market prices & refinancing, another exit could be selling each unit individually as condos within time. I needed some advice in regards to financing.

I can come up with about 100k of my own money and because my mom showed interest in the past thought of reaching out and seeing if she would put a loan against her 401k for the rest of the down payment. Even though I’ve heard of such a thing, not sure how it’s done? I would have her come in as a lien holder with interest or lump sum after a possible refinance. Another option is 50/50 partnership where I would handle all work. This is just one option before outsourcing to other investors for a cash on cash return on their money with this investment opportunity.

Im working on this opportunity as we speak so Any advice would be greatly appreciated, thanks for taking the time to read.

Sam

@Brandon Turner

@Jay Hinrichs I agree thanks for your advice. I opted out and decided to stick with my routine and trust the process. I was approved for a loan on a 5 unit building but For me being new to commercial I figured going bigger with guidance was a better option. Hence why I came to the forums before leaping into a sales coaching program.

I appreciate everyone's time

@JD Martin thanks for your input, greatly appreciated. I agree, I'm not sure when she will have the funds. So I will be just cutting down the branches that hangs on my side to take action right away.

Thanks,

Sam

@Jay Hinrichs Thanks for your thoughts and view. The contract states the retainer fee (15k) in my case gets returned when the mutual 500k is reached. Also not focused on, no money down strategies if it all. They supposedly help you raise the capital for deals from there source of relationships. Getting my license and working for a commercial broker is a great idea. I appreciate all your feedback.

Thanks,

Sam