All Forum Posts by: Paul A Christy

Hi all, I bought a mixed use property and got approvals to build. The contamination discovered won't stop the building as the air quality is fine but I have to treat the water. Ive been working with an LSRP and an environmental attorney but I would honestly prefer to sell and focus my attention elsewhere. With out building, just rehab and raising rents about 400k of equity can be added; in building with approved plans its approx. 1.4M (less the cost of addition of three apartments and environmental) I owe 500k and the after addition value is between 2.1 and 2.5m. with another kid on the way and cash restrictions I would rather sell for 700k and leave 400-900k on the bone for someone else to buy this headache. Does anyone know a company or person that takes on these projects? this building is in union count NJ is current 2 residential apartments and 2 commercial on a corner with a parking lot.

Hi all, I bought a mixed use property and got approvals to build. The contamination discovered won't stop the building as the air quality is fine but I have to treat the water. Ive been working with an LSRP and an environmental attorney but I would honestly prefer to sell and focus my attention elsewhere. With out building, just rehab and raising rents about 400k of equity can be added; in building with approved plans  its approx. 1.4M (less the cost of addition of three apartments and environmental) I owe 500k and the after addition value is between 2.1 and 2.5m. with another kid on the way and cash restrictions I would rather sell for 700k and leave 400-900k on the bone for someone else to buy this headache. Does anyone know a company or person that takes on these projects? this building is in union count NJ is current 2 residential apartments and 2 commercial on a corner with a parking lot.

I found a 7 year 5% down  4.2% interest only loan for a 2 family in an EXCELLENT neighborhood and told my lawyer I wanted a clause that stated at the end of the term or for any foreclosure that I can not be found liable for the remainder of the balance if  value is less than purchase price. (I mite just word it to be general regardless of the balance)

She stated that this can still be brought to court and Pericles the veil and they can still go after me and my other assets. She said if she were the other attorney that this is what she would do. Can someone please offer me some opinions and give me opinions because I like this deal, the area and the cash flow.

Thank you so much for the response! Not my first deal, not including my house it’s my 4th. However I’m usually a value add guy and this one is in such good shape. It’s just that it’s in such a great area, and finding a 5 percent down deal looks great to me because I’m used to 25 percent, and the interest is cheap. But the payment would strictly be going toward interest and I’m left with the entire principle when the 5-7 years is up. It’s cash flow neutral now, but can definitely be raise 500-700 a month. I’m thinking for 36k plus closing I can secure an asset, hopefully it goes up 10 percent, I paid 5 percent, and I would save the cash flow for the other 10 percent so I can refinance into a traditional fixed rate. My realtor friend who has his own brokerage said it looks like a good deal and that even in a bad case I could sell it in that area and be okay.

Any thoughts ?

Hi everyone, I found an owner willing to be the bank for me for 95% (only 5%down ) in a simple loan of 4.25 percent interest for 5 (maybe even 7 years) but then the balloon pops and I owe him the entire asking price. As is I would probably cash flow around 1-2 hundred on day one but it’s under market rent by 5 to 7 hundred a month (tenets are month to month ) and he has 4 garages that I could rent out there as well. Property is in good shape and in an EXCELLENT town. But my concern is when I have to refinance that it will not have gained 20 percent equity since I think it’s about 25-35 k over market rate (lessthan 5 percent of total)  or worse it will go down in value putting me in a pickle.. any advice please??

I could always just go with a long preforming index fund, but then I miss out on the tax benefits and all it IRR, not to mention experience and knowledge. Since I want to transition into this area full time to obtain a better life balance I figured hitting a single or a double is still progress relative to my situation.

Nathan, there is nothing on top and I figure about 800 square feet, but thank you for your response. You've given me good things to consider and I will definitely learn more and figure out the process for my area.

I'm closing on a mix use four unit property Thursday, I plan on making it a value add. Their is a pizzeria that I can add another apartment on top of.

is this a good idea and how much mite this cost??

So my first property ended up being a successful brrrr, despite my many mistakes. A good deal from a family member fell into my lap and I've always wanted to be a real estate investor. It's only now as I've mentally gorged myself on all things real estate that I know how vague that ambition really was. This first deal really showed me how much I didn't know, that I didn't know. But as a forever student my optimism was not shaken ( it was supposed to be a flip btw, not a brrrr) now I'm about to close on the 20th on a mixed use, 4 unit value add project that cash flows positively day one ( not by much, but my plan is a larger scale brrrr)

This third deal that just just got out of attorney review is different in the sense that I'll only be adding minor value with minor rehab. It's duplex, and I'm projecting about 10 CoC. The reason it concerns me a bit more is because the initial funds will sit in there for a long time, but I love the simplicity, since I work 70 to 90 hours plus a week..

Is 10 percent CoC a good deal ( I know it's subjective and there are many factors ) but in your guys and gals opinions ? Thank you