All Forum Posts by: Robert Churchill

Hi Laura

Feel free to message me, I am a general contractor as well as an investor in the seacoast. 

Not sure I have time in my schedule but might be able to point you in the right direction. 

Bob

I am a investor and a contractor in that local market. so feel free to reach out if you have questions or want to chat about the market.  If you DM me we can exchange contact information

the FF&E are all owned by the building owner and he has leased out turnkey restaurant spaces. right down to tables chairs and and wall art. I am probably worrying about the fixtures more than I need to as the numbers work well with a 10.5 cap rate and a 20% cash on cash return.

what are the chances of using a multiple partner llc that buys a piece of property to fund the down payment instead of a private loan that the lender won't count as down payment. here's what I am thinking. the LLC would own the single property and could be structured so that the private loan was a buy in percentage of the llc but once purchased switch over to a buyout procedure where by the investor gets bought out over a set period of time. what are the odds this gets through underwriting. I have a private unsecured loan for 15% but need to fund the other 15% which the seller is willing to do at 0% but I know it will get kicked back by the lender as not counting towards the 30% down required.

no maybe I should have asked more specifically. I can come up with a value for the equipment, but how or where does that dollar amount get plugged into the deal calculations?

looking at a 3 unit commercial property of which 2 are restaurant spaces all 3 are rented on triple net leases. I can go through the deal if needed but my question is on determining and factoring the value of the fixtures for both places. The sale includes ownership of all kitchen equipment as well as bar supplies tables and chairs, the current owner basically has leased out turnkey restaurant spaces. I am having a hard time factoring the fixtures into the deal evaluation. thoughts?

as a rule commissions are paid by the seller but not all listings are the same. some sellers may have negotiated a lower than 6% commission. So your realtor is saying he is going to collect his 3% no matter what. 

there should not be any up front fees to buy

find a different agent. Where are you trying to buy?

So your basically signing a form or agreement that says no matter what the deal is he or she is guaranteed to get 3% with you making up the difference if any. some outfits do this and i just refuse to sign it. i also refuse to sign the due diligence form some try. They need to earn the commision not just show you houses and get 3% Use a different realtor. Mine shares the MLS sheet with me where it lists the commissions as well as the property condition all sellers are suposed to fill out and attach to listing.

the property is 4 houses 1-1bd 2-2bd and 1-3bd gross rents are 3750 tenants pay all utilities, lawn care and snow removal other than the well 15 bucks a month.  Mortgage and taxes on 15yr fixxed is 2002 per mo insurance is 1700 per yr. Than i have a second private note or the remaining 30% thats 690 per mo.

3750- 2002- 690-142=916 before maint and cap imp. 

Since buying the property the tenants have got a new roof, all deffered maint taken care of, basement cleaned out and a land lord that is responsive to any issues unlike the past. 

so I have been mulling this over for a few months now and read a lot of similar posts on the topic but have not really found a answer that really applies.

I will try and keep this brief

the situation

bought 4 SFR on one lot (found portfolio lending it) in dec of 14 for 235k all occupied but we will only focus on 2 right now

house A

current inherited rent 1100 for a 3bd good tenants pay reasonably on time by the 5th every month. semi retired been in the home for 7 yrs take really good care of the home and property but no longer need the three beds. now on a month to month with no rent increase over the same 7 yrs

house B

inherited rent was 950 for a 2bd on turn over I rented it in one week for 1150 per month to a solid tenant.  had over 50 people that wanted to turn in application.

the dilemma

I feel that the 3bd house a is probably under a reasonably conservative rent by 250mo its 3000 per year which is not a small sum. I do find it funny when people are worried about 15 extra a month but another story.

I would like to increase the rent to market I have come up with this plan which works into timing but it goes like this give them 60 days notice to a scheduled rent increase schedule. in 60 day rent would go to 1200 followed 180 days later by another increase to 1300 than in another 180 days the last 50 to a market of 1350.

now for the timing

march 1 I have a 2bd right next door opening that I plan to market it for 1150

so it boils down to letting them choose between downsizing to the 2bd or going with the 3bd with the rent increases.

currently there are NO SFR in my town for less than 1800 mo so there is a shortage of rentals which makes me think I wont have to much trouble renting 1 or both.

but there is still part of me that says don't rock the boat and wait until they move on but that may be  while so that's a lot of potential opportunity lost

what say BP about my plan. am I being Mr. Burns