All Forum Posts by: Paul Smythe

Does anyone know of a lender that will lend on a condominium portfolio in Georgia in the low $1 million price range? This is a unique transaction in that it is a portfolio of residential units instead of on commercial property. The units make up the majority of the complex, for what it's worth. Any recommendations would be greatly appreciated.

Wanted to refresh this discussion. Looking for all types of multifamily buyers. Give me a call at 770-288-5000, email [email protected], or message through BP.

I am looking to expand my network of buyers of multifamily real estate in the Atlanta metro area. I have one off-market deal available in Norcross, GA for $1.155 million (with more deals coming soon). Give me a call at (770) 288-5000, email me at [email protected], or message me on BP to discuss.

@Kristopher Gomez I have an off-market condominium portfolio available. Solid class C, $1.155 million, 11 units, high 8/low 9 cap rate. Let me know if you're interested and we can discuss specifics.

@Steve DellaPelle if everything checks out and is approved I'd bet it would be a very good idea. You'd see a very nice bump in income.

One thing to consider, though. With the move from residential to commercial, the way your property value is calculated will be different. Instead of the comparables approach with residential you will move to the income approach for commercial. I'd be happy to help walk you through that separately if you'd like, but the methodology with which your value will be calculated is going to change. It'll most likely be a positive change, but that's not guaranteed.

I would definitely make sure you get approval from the county before actually making the change. If the property is zoned residential and you convert it to a commercial 6-unit you could run into issues. Last thing you want to do is go through all of that work only to have the county not allow you to use the two new units.

I dealt with this for a while. It's a headache, but you can work around it if you're patient. The key is not to post a lot of listings at one time. Stagger your listings over a few days or weeks (depending on how many you have) and you should be fine. Craigslist does have a very sensitive reporting system, though, so if you get one or two people flagging an ad it'll likely be pulled (and make posting other ads difficult for the next few days). Sometimes I love Craigslist when it finds me a buyer and other times I don't love it when it gives me issues similar to what you're experiencing.

I feel like I've read that you want to keep vacation rentals under 30 days, but I can recall the reason why. I've got a two month inquiry and wanted to see what the BP community thought. Are there any reasons why?

My group has completed a flip, but while in the process of getting it ready to sell we looked into holding it as a vacation rental. After running some tests and seeing the expected returns we decided to go that route. We already have a solid calendar of bookings that is filling up quickly. The issue we are running into now is finding financing so we can refi and pay off our hard money loan.

Our go-to hard money lender is not interesting in vacation rentals. We know Visio does it, but they have pretty high interest rates. Are there any other options out there for us? The very conservative DSCR is around 2.00, so there has to be someone willing to lend on it.

Brent is right on this one. You wouldn't be in a terrible position because you're still getting a portion of the mortgage covered, but the numbers aren't superb. I would try to knock them down on price a little more.