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All Forum Posts by: Pavlos Kasselouris

Pavlos Kasselouris has started 37 posts and replied 197 times.

Post: Conventional Financing For Primary or Investment Purchases.

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64

How many days usually for closing on a loan after initial application?

Post: Evaluating a almost empty mixed use commercial property

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64
Originally posted by @Joel Owens:

Is it a local, regional, or national bank? If it's local or regional sometimes they will finance the property at favorable terms while you turn it around.

This will help keep your cash to put into the property versus a large down payment.

Its Florida Community Bank. Honestly I didn't ask the broker because I have a private investor. My issue is what percentage of the overall after turnaround value would be fair deal?

Post: Evaluating a almost empty mixed use commercial property

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64

I'm exploring a banked-owned mixed use property in Florida. Its on a main street with two storefront offices, 3 residential units at the back, and comes with a lot at the back that its zoned multi-family but it will need a lot of earth work to be developed. The lot that the building is on is zoned mixed use commercial. 

Only two res.units are rented. Its been on the market considerable amount of time.

How can evaluate an empty commercial opportunity? Currently they are asking 195K, and by running numbers etc I will start my initial offer 135K with the intention not going more than 160K. The building needs around 15-20K to be brought into very nice condition.

Post: New member from Daytona Beach Florida

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64
Originally posted by @Tom Cooper:

Thank you Pavlos. I will let you know when I have something available. Any particular areas you like? Do you focus on one specific class of property, A,B,C, or D class properties? And what price points are you looking for? Thanks again Pavlos, I look forward to hearing from you soon. 

Currently I have the capacity to take on properties that have an ARV of 180K approximately. Generally I will consider anything outside Holly Hill. Decent neighborhoods.

Post: How Do I Structure Private Money Line Of Credit?

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64

That why I love Bigger Pockets! I was looking for exactly the same information! Awesome! 

Post: Financial Structure for Flips

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64
Originally posted by @Jonathan C.:

I have credit line (called a guidance line of credit) with local bank that funds most of my flips. I had only flipped 3 or 4 when I got in touch with them, but they were still willing to take a risk with me. Without somewhat of a track record, I think getting any sort of 'big money' type financing (like not hard or private money) will be really hard if not impossible, but probably still worth trying to find out more about local requirements for institutions in your area.

My credit line, as I said, is guidance line of credit that then has individual notes and deeds and trust underneath of it on individual properties that it funds. It's like 1-2 pts and then prime +1 interest rate.

Acquisition- 70%- based of lesser of purchase price or appraised value. Purchase price is always the lesser (duh) so it's always based on that.

That's it- no rehab costs or anything.

How can I structure a deal like this with private investors and calculate interest payments etc? 

Post: New member from Daytona Beach Florida

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64

Welcome Tom,

This is the area I have my properties too. Please put me in your buyers list for potential off market deals!

Post: Capital Expenditures in Florida

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64

Capital expenditures include a variety of things that can happen in a house, like roots inside your sewer system, that are not considered regular maintenance. Depending what you put in your calculations that amount can flactuate. The only reason Im saying that is dont try to calculate with so much precision your cap ex dollar amount because thats going to be a lot of times off. 

For example a AC unit might have 15 year life span, but because a repair was too much I replaced a unit in 9 years but got some credit for the old unit. That was a new cost of $2350 with a 10 year warranty. The roof when I bought the property had at least 10 years of life. For that property before I bought it I did my calculations with a 10% cap ex. 

On another property that I had rehabbed everything, I calculated 5%. Of course if there is deferred maintenance I will consider it in my initial offer, when analysing comps.

To answer the roof question a new roof today depending what you install can have up to 35years warranty. A roof that was installed 2004 I would calculate that it has around 8-10 years of life.

Post: Handyman Franchise

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64

@Jim Shepard 

Awesome information Jim. I really appreciate it! 

The only difference, imo is the brand recognition. Subway is world known. A handyman and remodeling franchise doesn't have that kind of recognition. The way I see it you buy mostly their marking plan and the operations system. Your subway costumer will walk in because they know what to expect. My handyman costumer will call me because he found me when in need.

And that's why I'm hesitant. On the one hand I know I can create these systems either by putting a lot of effort either outsourcing whatever I can't or don't know. On the other hand having support is a big deal, people that they are there to help you when you need it. But is it really worth the initial investment and the ongoing royalty? And also lets not forget the area you service.

I will definitely speak to current and ex-franchisees. They are not regulated and will be able to give me solid numbers.

Post: Handyman Franchise

Pavlos KasselourisPosted
  • Project Engineer
  • Miami Beach, FL
  • Posts 203
  • Votes 64

@Gino Barbaro

I mean trapped. The general investment can go up to 120K.