All Forum Posts by: Robert Lindsley

Hi there,

I've been trying to raise $45k for a couple of months to finalize a deal, but haven't been able to find the right partner.

I came across a company, The Funding Group (TFG) which goes to all their lenders and raises money on your behalf.  In exchange for that they charge a 12% fee.  Also, each lender they go to needs to run a credit report.  As a result you can have multiple hits on your credit with no guarantee of getting the funding.

I'm looking for some advice here.  How should I approach this?  I'd very much prefer to find my own lending source, but it hasn't worked out (mostly because the loan would be a second lien position due to the seller financing).  Is something like this a terrible idea?

Thanks for your help!
Robert.

Hey there,

Thanks everybody for your comments.  This is a great conversation.

The deal is actually quite good. The ARV is $550k, with the original asking price of $480k. The owner said that if I were to give this life-long lease to his brother, he would know the price down to $400k.

Current market rent is $550 for the apartment, so I'm losing $200 a month out of the gate.  The brother is 65 years old, so I'm not worried about this being a 30-40 year issue.  A rent escalator may make sense though - perhaps 2-3% per year.  Or just leave it alone because of the discount on the building?

Thanks!
Robert.

Hi there,

I am in the process of buying a 7-unit multifamily property.  The property is being purchased via a combination of seller financing, some cash, and a small investment raise.  There are no real estate agents involved.

As part of the sale, the seller wants his brother (currently a tenant) to have a 'lifetime' lease for a fixed price ($350/mth) in his unit.  My attorney is suggesting that we structure his lease to cap the rent as $350 as long as he chooses to stay in the unit.

According to the seller, he committed to his mother that the brother would always be 'taken care of,' and this is his way of doing it.

I see a couple of risks:

- What is he stops paying rent?  If he were a normal tenant I would just kick him out, but there are special circumstances here.

- What is I sell the building to somebody else?  Wouldn't this create an encumbrance making it more difficult to sell the building?

What are your thoughts on something like this? Do you see any other risks that I could build into the P&S agreement?

Thanks!
Robert.  

Hi there,

I'm in the process of purchasing a commercial space. It's a 7-unit multifamily building with an additional commercial space in Norwich, CT.

Most of the funding is in place but I need to raise the final $50k to get across the finish line. I'd love to meet any potential funding partners not only for this project, but for future projects.

If you know anybody, please reach out and I'll share the specifics of the deal. I very much appreciate it!

Thanks!

Robert.

@Rick L. Thanks!  I will reach out to him.  I appreciate the recommendation.

@Rick Santasiere I PM'd you.  Thanks!

Hi Manuel,

Thanks for your advice on this!  I will reach out to Jay this week.

Thanks!
Robert.

Hi there,

I'm getting ready to make an offer on a 7-unit building in Norwich, CT.  Before I made the offer I wanted to reach out and ask for thoughts from the community.  Is this a good deal?

The building is mixed-use; 7 units are apartments and there's one additional space (garage) zoned commercial.  The building is being purchased through seller financing and the owner has given me two financing scenarios (outlined below). 

Here are the fixed costs:

7 units and 1 commercial space - total rent $6225/mth

Taxes: 277/mth

Ins: 365/mth

Utilities: 1050/mth

Vacancy: Building is full, but assume $311.25/mth

CapEx: The roof has been replaced in the past year, along with new heating system and water heaters. This building has been taken care of, but I'm still assuming $311.25/mth

Repairs: Again, the building is in great condition, but assuming $311.25/mth

And here are the variables based on my down payment.  The seller has given me two options:

- If I put down $48k, the purchase price is $485k with 8% seller financing for 5 years

- If I put down $85k, the purchase price is $400k with 6% seller financing for 5 years

- The seller claims (and we'll see when it's appraised) the building is worth $550k

Based on the amount down, here are the scenarios I determined:

Worst case scenario: $48.5 down @ 8% would net $689.25/mth

Best case scenario: $85k down @ 6% would net $2024.25/mth

I can comfortably put $48k down but $85k is much harder. So I'm figuring out how to get the additional funds.

I can't wait to hear your thoughts on this!  Is the worst-case scenario good enough for a few years until I can refinance and get a better rate using the built-in equity on the house.  Or should I beg, borrow and steal to get the additional funding?

Thanks!
Robert.

Hey there!

I'm getting ready to make an offer on a 7-unit building in Norwich, CT.  I've never bought a property in CT and am looking for advice on an attorney that can handle the closing.

The property is being financed via seller financing and I will be putting some money down.

Does anybody have recommendations on an attorney?  Ideally, it would be great to hire somebody who works flat-rate but it's not required.

Thanks!
Robert.

@Robbie Reutzel Sent you a PM.  Thanks!

Hello!

My name is Robert Lindsley and I'm a real estate investor in the Boston, MA area. Over the past year I've been focused on fix and flips as well as buy and hold properties with a particular interest in small multi-family properties.  The Biggerpockets community has been amazing -- it's been great to talk with fellow investors and learn from so many people.

I have built a terrific network of Realtors, Coaches, Attorneys, Property Scouts and Investors. Now I'm expanding my network, looking for great long-term financial partners who are interested in solid, predictable returns on their money.

My team and I are finding lots of great opportunities and are looking to bring on financial partners of all sizes. We're looking for investors both large and small. Let me know if you're interested and I'd be happy to jump on the phone or I can answer any questions on this thread or via email.

Thanks in advance and I'm looking forward to chatting with you and getting more involved in the community!

Robert.