All Forum Posts by: John Chapman

I'm working with a land owner.  I want to develop a small commercial building on the ground floor and put apartments on the second and third floor of the land that he owns.   The landowner doesn't have a real estate background and doesn't want to take out a loan to help with the building costs.  The landowner would like some equity interest in the project however.  He owns the land free and clear.  I'm most interested in the apartments, but I cant give him all the commercial because the costs to develop the commercial building would be more than the land value that he is donating.  Who has some ideas that can help me structure a deal that meets both of our needs.  Thanks!

Hi Alex,

I hear of properties for sale from time to time prior to them being listed by a realtor.  I could let you know the next time one is available if you are interested.  I'm looking for properties too but our criteria might not totally overlap.  I've been investing in Pullman for 25 years.  Let me know if you would like to get together sometime and discuss.

Hi Matt,

I'm a local investor that would be willing to help you out.  I have properties from time to time that I would be willing to sell, although nothing currently.  Buying a duplex or tri-plex and living in one unit and renting out the other(s) is a great way to start.  

Alan,

I have been purchasing real estate in Pullman for over 25 years.  I'm mainly a buy and hold investor but we rehab properties also.  I'm rehabbing a duplex now that I purchased in November and will put on the market within the next month.  Let me know when you are in town and we can get together.  Looking forward to meeting you.  My contact information is on my web site Anitasrentals.com

I'm interested in multi-family real estate in Pullman, Wa area.   Also, properties that I can rehab/flip.

Justin and Barbara,

Not sure what you mean by a JV (joint venture). With who? I could potentially buy the property myself but would have go give them a real low ball offer which they would likely decline. I also like the idea of an equity stake without risking any of my own money.

They could potentially hire a PM to do the renovation work and not have to  give up any equity, but the owner is out of town and has a very demanding career.  So it would take a significant effort to interview PM's and layout all the rehab work, solicit bids, etc.  Also, there are not a lot of property managers in the area and he is rightly convinced that we would do a much better job than his existing property manager.  Thank you for your comments.

I'm trying to decide the equity pct. I should propose.  I'm thinking 20% today.

An out of town investor has an apartment building with a 40% vacancy rate.  He doesn't have time to manage the rehab that this apartment building needs.  He is also very dissatisfied with his current property manager.  I'm going to propose that I would take over management of the apartment building for 8% of rents (standard in our area).  Also, I will supervise the rehab of the apartment building so that we can get the units filled again.  For supervising the rehab work i'm going to propose he give me a 15% equity stake in the apartment.  Does this sound reasonable?  He benefits by upgrading his property manager plus someone to supervise all the rehab work that needs to be done.  He is very busy and a long ways away from his apartment building.

Thanks, Armond, but how do you insure that the seller is making the underlying mortgage payment if you are wrapping a loan around his mortgage?

I have never done a ‘subject to’ mortgage but am considering doing one for the first time. I have a couple of questions:

• 1) Is it wise for the borrower to contact the lending institution and change the address and addressee of the mortgage statement to the seller?  Or would that make the lender suspicious and possibly result in the lender discovering that a sale occurred and triggering the due on sale clause?
• 2) What risk is incurred if I deduct the mortgage interest on my Federal Income taxes even though the 1098 mortgage interest statement will be attributed to the seller?

I don’t have enough capital to purchase all the real estate opportunities I find in the small college town in Washington state where I live.I have a significant line of credit, but cashflow is borderline with 100% financing and I don’t want to get too leveraged. I think that there are probably lots of investors that would like to participate in the deals that I find.What kind of organizational structure should I set-up so I can get compensated for putting together profitable real estate deals.Should I look at Crowfunding? How can I advertise for investors?