All Forum Posts by: Kevin T.

I have not paid any fees whatsoever, I received a letter of intent detailing the specifics of collateral (a share certificate for $4.7 million) and a repayment of 25% of NOI payable at the end of the every fiscal year. It also details an exit of 5 years with my company having the right to purchase first. I'm just a bit concerned as the entire funding is coming from the United Kingdom as it is a bit unusual.

Thank you, I'll see if I can contact a company in their country to have some verification. I just believe that if we can get the funding verified with a legitimate banking institution, that will be enough for me to feel confident that the funding is in place. I'm weary of any upfront fees and I'm trying not to fall for any form of a scam, so I appreciate any and all insight. 

Thanks Jay!

Hi everyone,

I am in the process of purchasing a multimillion dollar apartment complex with the assistance of accounting and legal professionals to review the financials and the property. I received an offer for 100% financing through a private lender seeking a 25% equity stake in this project. Now, it seems a little steep but understanding that they can be bought out in 5 years with my company having the right to purchase first is perfectly fine to get this deal under way IMHO.

My question is as follows, the individual lending the money is going through a company that I will leave off of this post for privacy reasons but I want to ensure that I am not about to work with a group of individuals who might not have the proper funding in place. They have excellent reviews, but they are a UK based business. They have been in business over 6 years with no negative reviews.

What would you recommend doing to verify that this lender is legitimate? Obviously my legal team is researching for me, but I want to know if there is something else I can do in the mean time. Any help is greatly appreciated, as I intend on closing this deal this month.

Hello everyone,

I currently own a rental property that is a SFH and the lease expires at the end of April this year. I am very passionate about being a landlord and want to pursue more rental properties as soon as possible. I have been reading through two very informative real estate investment books. Based upon this research, I see a large push toward purchasing commercial property using "Other People's Money (OPM)". This can be accomplished several ways, but apparently the most desirable is 100% owner financing (Wishful thinking, I'm sure). For the sake of clarity, know that when I say commercial property I am referring to a property with at least 5 rental units.

One of the largest benefits that I see from owning a commercial property is that all of the units are typically located in a smaller geographic area. On the flip side, owning a bunch of single family homes all over the map is not as convenient. I'd much rather have a property management company deal with 20 units in one centralized area versus all over the map. With a commercial properties, such as a small 20 unit apartment, even a rent increase of $50 per unit x 20 units yields $1,000/mo. In a sense, this would raise net operating income (NOI) as a type of forced appreciation and increase passive income.

Given all of this information, and provided I've been a landlord less than a year, what is YOUR opinion on getting started with commercial properties versus single-family homes to rent? Have you any success or horror stories to share?

Thank you for reading this miniature novel.

Greetings one and all! My intentions this year are very straightforward. I've been reading a very good book about purchasing apartment complexes versus owning a multitude of single family properties for rental endeavors. I intend to purchase a commercial property in the next few months. I began looking into one property that had 27 units, however it ended up being an extended stay hotel rather than an apartment complex. I was very weary of the purchase because the owner had no rent roll and also had no available financials for review. I hear so much about wholesaling, so I think I'd like to give that a try. I'm not positive that is the route that I want to pursue first. I currently only own one rental property that is a single-family home. Personally, I think it would be better to have a commercial property vs a bunch of small single family homes based upon what I'm reading even though I intend to use a property management company to assist in the tenants and toilets situation. I look forward to reaching my goals this year through education and the assistance of so many professionals here. Let's make 2015 the "kiss your day job goodbye" year.