All Forum Posts by: Rich Hanlin

Investment Info:

Office Space commercial investment investment.

Purchase price: $2,200,000
Cash invested: $500,000

5 acre 6500 square foot single story that came with a 3 acre lake. Recently remodeled in 2020 but never reopened due to covid.

What made you interested in investing in this type of deal?

Relocated from California to Georgia in order to offer our platform on a national scale. Made the decision to purchase a 6500 square foot commercial building to house our National Head Quarters ins. It came with a 3 acre lake and an additional pre permitted plans to expand the building. Got into the building with a Investors short term loan and then flipped financing to a long term SBA loan.

How did you find this deal and how did you negotiate it?

In July of 2021 my partners and I flew into Georgia to look for a commercial building for our national Office. We had seen the subject property but with only one picture on LoopNet and a poor picture at that, we paid zero attention. On the morning of making an offer on a different property one of my partners told me he had driven by and looked in the windows and that we had to come by before we made a final decision. What we found was a diamond in the ruff. We made an offer.

How did you finance this deal?

We took out a hard money loan that closed in 1 week. We then, after 5 payments refinanced to a long term SBA loan.

How did you add value to the deal?

We purchased the building full renovated and with all desks, chairs, electronics, printers, TV's and equipment. It was turn key.

What was the outcome?

We got the deal and it has been a blessing to say the least

Lessons learned? Challenges?

Hard money can be easy and it can be hard. We spoke to no less than 12 hard money investors and in the end the last one was the best and we closed in one week.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Harrison Elliot of Xpert Home Realty. He knew the Hard money lender we used

I am purchasing a $2.3 Million Office Building IN GA and do not have time to wait for SBA.  6500 Square Feet , Owner Occupied, 45 Day Close, can put 25% down, any suggestions.  I have strong credit, I have strong assets, and I have strong income.  Property is turn key and ready to occupy.  Anyone have thoughts please.  

@Greg Moore 20 percent of my total net worth is in Bitcoin/crypto Currency.

@Justin Shabanian I guess I think a little bit differently not sure if that’s good or bad but I would take $60,000 I would buy bitcoin and I’d sit on it for one year until we know for sure that they’re going to lift the restrictions were renters don’t have to make payments and can’t be evicted. I also am under the thought process that the next year we are going to see some big things coming our way maybe some good but definitely some changes that could be bad as our economy is getting the crap kicked out of it.

@Moises R Cosme. I’m going to go with a pull back. Maybe not a crash but it’s all propped up by nothing right now. Stock market new highs in the middle of COVID shut down. It does not add up. More and more people not making their house payments, rent payments and or commercial loan payments. I think the pull back has already started. The stock market is up due to a few run away companies. I guess I’m pessimistic. But 2021 is about to see the hammer.

@Drew Clayton

I realize those helocs might be taking 30 to 45 days but I'm gonna tell you right now appraisers are backed up and less you get an appraisal waiver your refinance is going to take every bit of 25 to 30 days maybe longer as well. Sure people may promise a little faster than that but my brokerage is closing 700 loans a month, and the average close time is definitely up. the biggest problem we can't get enough appraisers they're all backed up. As for my choice I have a free and clear property in Georgia and I'm about ready to put HELOC on it. I like that idea because the local banks gonna give me zero cost but I also have the ability to pay it down quickly and I think that is the key how much extra money do you have to use it correctly.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $403,000
Cash invested: $80,600

Buy and Hold Rental Number 2 for 2019.
My wife and I purchased a home that we are putting our son in and 2 of his friends. I was the real estate agent and I was the loan officer so we will recoup a large chunk of our outlay at COE. We will do our own Property Management on this one.

What made you interested in investing in this type of deal?

Our youngest son was wanting to move out and rent with his friends and we were looking for a California rental .

How did you find this deal and how did you negotiate it?

On the local Metrolist. I am a licensed broker and own both a real estate company and mortgage company so I was the Buyers agent and the loan officer.

How did you finance this deal?

I own a mortgage company so by adding my son on the deal we were able to go owner occupied pricing. We took a interest rate that the lender paid all the closing costs as well as a 2.25% Loan Officer compensation. The real estate compensation was 2.5%. We did a 20% Down Conventional 30 year fixed with no impounds as the lender paid both our insurance and property taxes for 2020.

How did you add value to the deal?

Value add for me is that I own my own real estate company and mortgage company so I can recoup a large chunk of our down payment at COE as well as set up the loan so that the lender covers all our closing costs.

What was the outcome?

Transaction is closing Monday December 23rd.

Lessons learned? Challenges?

In hindsight I should have moved money from my HELOC to a TD Ameritrade account that I keep a small amount of money in verse my personal account. Having to show 2 months statements allows the underwriters to review every deposit and make you source them which can be cumbersome.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

A shout out to Nighthawk Whole House Inspections.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $156,800
Cash invested: $31,360

Built in 2016, 3 bedoom, 2 bathroom, estimated rent $1400. Close to Warner Robins AFB with the largest civilian workforce of all US AF bases. Looking at a 10.50% ROI. Will be a buy and hold long term rental. Appreciation is not counted on. Jumping in for Rental Buy and Hold #1. COE 12.15.2019 will be using a local property manager since I live in California. My son is a Officer at Warner Robins and introduced me to the area.

What made you interested in investing in this type of deal?

My son is in the Air Force and purchased his first home in the area. The rent to value ratio is incredibly high and with 20% down cash flows nicely for me.

How did you find this deal and how did you negotiate it?

It was a For Sale By Owner on my sons street. He saw the sign go up. I am licvensed in California and requested a 2% reduction verse using an agent. I will be getting a appraisal and Whole House Inspection but the home was built in 2016 and in great condition. Was a primary residence for a single person so 2 rooms have not even been lived in.

How did you finance this deal?

Lender finacing, 20% down with a local Georgia Mortgae Broker 5.375% fixed for 30 years.

How did you add value to the deal?

Being an agent in Califoria I was able to get the PP reduced by 2% and get a $1500 stainless steal refrigerator to remaiin in the house.

What was the outcome?

In conract as of 12th of November with an expected COE 12.10.2019.

Lessons learned? Challenges?

First time coordinating with a property manager and also long distance. I will rely on my son to assist which is a great lesson fr him as well.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Working with Ben Cox local Warner Robins Mortgage Broker.

@Mindy Jensen

I’m in and I am bringing my son and possibly my youngest son if he can get it off work and school. I want my sons to hear that starting just takes action and a plan. Failure is imminent but with failure comes success. There is no straight line to success and week after week Bigger Pockets highlights this. As well as how people have overcome their no’s and turned them into Yes’s. Very excited to invest in my sons future.

@Logan Causey

Back in 2008 I was doing 100 percent loan to value , stated income, investment and owner occupied purchase and refinance loans. We are no where near that today. People still spend more than they bring home, and people still use their equity as a cash register. But nothing like back in 2008. I don’t see a correction of that magnitude in today’s market.