All Forum Posts by: Rao Mu

No, I didn’t go forward with the sale. I was too late in DD before the next buyer snapped it.

Hi Niti

Have u been able to find any portfolio lenders? Pfcu can do loans on llcs for cash flowing properties at 3.25% more than 10 year treasury. All this for 20% down. However, the problem is that they can’t match multifamily loans which are 2% more than 10 year treasury. 

unfortuantelY, tenants are not public and I couldn’t figure out when their franchise agreement ends. Also, tenant owns this business in the last 3 years only.

One thing i didn’t mention is that, Land is triangular in shape and building is 1500 sft.

I am in contract to buy a Free standing property leases to a national pizza chain. I am picking it at a high cap of 9+ with only 2 years remaining in lease. They have been operating this location for almost 23 years and the business remained same national chain all these years with 3 different franchises. Present franchisee operates around 50+ locations. It has around 10 parking spots too.

Location is really good with traffic light intersection and full egress on both sides. It’s in a suburb of Philadelphia and it is densely populated. Half a block on that highway has Olive Garden and other half a block has another national restaurant chain.

  From the brokers words, present tenants want to buy it but at a lower price which owners didn’t agree. So, my guess is that they will stay and renegotiate lease.

  This is my first commercial investment and wondering what are the risks I didn’t anticipate. Purchase price is fairly low less than 400k.

Great pics mike. With regards to the material, where do you purchase? It’s a choice of having great looking kitchen, bathroom etc but within budget.

Yes, I closed it on an llc.

It’s a full recourse loan

I recently closed on a commercial strip in Highly affluent part of the central jersey with my purchase price at 9 cap. Though, it doesn't have national tenants, it has mom-and-pop and it's at a traffic light intersection. Most of the tenants are 10yr+ leased and the reason why I got at high price because of the fact that it's not very good looking. I love this property and demographics and high traffic flow, however, I would like to see if I can divest the property at 7 cap and retain 51% of ownership and give away 49% ownership to other partners. Is this something doable? If so, what are the legal complications? I do have a mortgage of close to 70% of my original purchase price (around 2 million) I paid an year ago. 

I went with garden savings bank in NJ and got 100% financing with 80% on mortgage and remaining 20% on HELOC. They require it to be your personal residence.

Hello bp crowd, I am in contract with a national child care franchise to do a build to suit for their franchisee. Project costs around 2.7 million and I am a newbie but I have good investment experience in multifamily. The question is 1) how much money I should bring to the table for construction loan to be approved? 2) what happens after the tenants starts leasing and construction loan becomes permanent loan? Will the bank let me refinance with cash out? I spoke with a banker and he tells me I have to come up with 30% down which is 810,000 and bank will construction finance the rest and once the tenant leases they will refinance only the remaining 70%. They are not going to let me take any cash out even if the property appraises at higher price. Is that true?