All Forum Posts by: Seth Wilson

I agree with Ben I build my own and constantly refine the features for each deal. It really gives me an inside out understanding of the performance of the property. 

Whenever I use someone else's I am confused by some of the metrics that may be important to them but not to me. 

I live in KC and was formerly active duty Air Force now I am a full-time guardsman. Let me know if I can help!

I am getting ready to close on my second 12-unit building and it is 100% financed. The structure is 80% from the bank, 20% from a private lender. The only money that I have in it is the inspection costs. The cash flow is less--for me, but it is a luxury car payment and it is a value add. So, I get a great property and the equity later. 

It is a double win!

My thoughts are that sex offenders are the lowest type of tenant--no one wants to live next to one. In my opinion the only reason that owners let them live in their properties is because that is all that they can get. They are scraping the bottom of the tenant barrel. 

In my business this is a solid PASS.

So far as the title company normally, around these parts, the seller picks one. But you can find one that you like by just calling around.

Buy the book "Commercial Mortgages 101" I bought it from Amazon on the Kindle format, after having the same questions that you did on my first multifamily. It will answer all of your questions and then some. I recently (as in last week) put the loan package together that he recommends, it took almost 3 weeks to complete it (but I have a 60 hour a week day job) and the bankers are going ape **** for it! I submitted it to 3 lenders as of yesterday and 2 of them called me twice each today to talk, excitedly, more about it.

I know that didn't directly answer your question but the info you will get from that book will far exceed what I could explain. 

Happy Hunting

Large capital expenses within the first year; unless the sales price or other terms are favorable. 

Functional obsolescence.

Poor quality tenants.

Bad Terms in any aspect.

Those just come to me immediately. I am sure I could come up with a dozen more...

Who cares?

I disagree with what these guys are saying, I wouldn't walk away from this deal....I'd RUN!

There are plenty of good ones out there, just keep looking.

"I have a great building that I would love to sell you at a great price, but you can only inspect these two units...."

That is essential what you have just done to yourself. Maybe you don't need an inspector to look at all of the units but you sure better at least walk through them! You will learn a lot about the tenants, the management and the ins-and-outs of the building.

Also when I am told a roof needs to be replaced in 2-3 years all I hear is; "this roof will need to be replaced in 2-3 MONTHS". The appraiser will catch this and may require a set aside for capex. Might as well get some bids on it now.

Sounds like things are moving along. Good Luck!