All Forum Posts by: Pierre Eade

I own a multi-unit mixed unit in Trenton, NJ. Three apartments and a downstairs bodega on the first floor. There's also a garage in the back.  The lady who runs the store has been there before I bought it in 2020. She had 10 year lease before and I renewed on with her with only a minor increase because she was struggling to get by. She has faithfully paid me since I've owned the place. I edited it on time since then in 2022 when she wanted to add a name to the lease and made it another 10 years. So now in 2024 we are two years in, 8 years to go on the current lease. 

Now she is saying that she is struggling to stay afloat and wants to partner a man to convert it to a restaurant. He is going to put the capital in to make the necessary upgrades in the place. He also wants his name on the new lease. He is asking for 10 years so he can recoup his investment. 

The problem is that the rent is currently lower than market ($1475/month vs $1850). So initially I proposed only a 5 year increase knowing that I did not want to have a 10 year lease with rent so low especially if I go to sell the building - it would be an unattractive investment.

The new partner proposed to have no increase in the first year, then $50 after every year for the remaining 10 years. 

I am uncertain how to project what rent will be for over the next 10 YEARS! and do not want to have such a low rent that it would be an unattractive purchase to someone else if I decide to sell. What advice do you have for figuring out what to charge for in rent over 10 years/

Hey Community! 

I have a SFH in my portfolio that has a good deal of equity and only a HELOC (TD BANK) on it for 10.24%. TD was not interested in doing a new HELOC because my portfolio is too big for their lending requirements (7 properties with primary, I thought the limit was 10, but evidently not).

In any case, I am looking to either do a DSCR loan or if possible find another company that would do a HELOC on an investment property.

I am wondering what lenders you are currently happy with on the DSCR side and if you know any that still give HELOCs on investments.

Thank you so much! 

Pierre Eade

Good points! Thank you @Charles Carillo! 

I am currently flipping a historic church into a gorgeous 4 bed 2.5 bath home. My plan at the start was to flip the property, but I am trying to see if there is a way to keep it. The challenge I have been having is that the numbers (below) do not work out great for a BRRRR, unless I am able to get higher than normal rent for the property. I have considered doing mid-term rentals because I have heard that I can get higher than normal rent, but I only have experience in longer term rentals so far (11 doors), so I am a bit hesitant not knowing if I can expect a consistent cash flow and where to find potential tenants. If I sell it, I can cash out and move the gains to my next purchase minus my capital gains tax. I am a licensed agent, so I can save half of the commission.

Purchase Price: $200K
Debt to investor: $75K
Rehab Costs: $115K 
Total Costs: $390K
ARV: $550K

Standard Rent: $3000
Estimated Taxes: $5500-$6000 (Was a church, needs to be reassessed) 
Estimated Insurance: $900-$1200
Estimated Mortgage on Refi : $3350

Cashflow : -$350

I am open to any thoughts on the deal. Thank you in advance, BP Community! 

Thank you, John. Follow Up Boss is one that I am looking into as a possibility. 

Hi Friends,

I am a real estate investor (currently 11 doors) and an agent (3 years in the business) and I am looking for a CRM that can help me both manage my rental properties and also help me run my real estate agent business.  I'm wondering if there are any other investor/agents who have found a CRM that meets both their investor and agent requirements.

Kindly,

Pierre

Amy - did you end up using them?   If so how was your experience? 

I am considering them for a deal.

Hello BP Fam:

In addition to my work in real estate, I am a pastor. I just started a new church in January. (see link below) I was looking for a new location for our gatherings. We currently meet in a hotel. In my search, I came across a beautiful small church in a nearby town. It was on the market for over 3 months when I first saw it and it was listed under the commercial side on the MLS. Unfortunately, it would not work for us as a church because there is absolutely no parking. I think it was originally a community church that people walked to.

In any case, I saw the potential in the property to be converted into a multi-family unit. After some negotiations, I was able to get the property under contract at a very reasonable price. I am in a due diligence period and found out that it cannot be created into a multi-family without a variance. I am not confident in the process of getting that variance based on my conversations thus far. However, it can be converted into a SFH without any variance. So I am looking to pivot and create it into a single family home and flip the property.

My experience until now has been buy and hold. I have had to do significant work on other properties, but I kept them after the work. For this one, I do not think the numbers would work to keep it as a hold, but I see great potential as a flip.  The lender that I have been working with said the property is "far too modified" to take on. So, I'm in the hunt for a new fix and flip lender.

Your recommendations are greatly appreciated!

Pierre 

My Church - Celebration Movement Church

Thank you, Eric. Sound advice. 

I am looking to buy a property, renovate it and keep it. I need a loan that will provide renovation expenses, then the opportunity to refinance after the build out.  I am looking to put $75-100K into the renovations. I have never done something of this size, most of my holds require $20K or less in funds.  

What lenders/programs do you have experience with that may fit a project like this one?