All Forum Posts by: Ryan Wattenschaidt

My partners and I are really just getting started with investing.  This year we have acquired four multi-unit properties.  We purchased with the help of investors and little to no money out of our pockets.  Since we are new are funds and reserves are limited to improve properties as tenants move on.  We are looking for someone who might be willing to either give a stated income loan, line of credit, or another type of loan.

Can you guys recommend someone that might able to help us out? 

Welcome to the site. There is a great REI meet up group in Harrisburg. It is very well attended and a great place to meet other investors in the area. The next meeting is actually tonight. Here is the link for the meeting tonight: http://www.meetup.com/LIMG-Harrisburg/events/218606751/

We recently got an 10 unit multifamily with a commercial space under contract in York, PA. Our usual lender has dropped the ball and changed the terms on us from what we have gotten from them on the previous three deals we have completed with them this year. We are in need of a new lender to keep this deal alive. Details below:

• Contracted Purchase Price $275,000
• Seller agreed to finance 20% down over 5 years and contribute $2k towards closing costs
• Building needs no works as the current owner has fully remodeled each unit including new roofs
• All units currently rented, approved for section 8 (if needed), and is current on all licenses/city inspections
• 20 separate parking spaces that can be rented each month for additional income (currently bringing $150 per month)
• Coin-op laundry on site bringing in approx $175 per month
• See below for property evaluation:
• • Scheduled Gross Income $92,880.00
  • Less 5% Vacancy Rate ($4,644.00)
  • Gross Operating Income $88,236.00
  • Less Operating Expenses
    • Taxes ($15,179.00)
    • Insurance ($2,645.00)
    • Water ($2,400.00)
    • Sewer/Trash ($6,000.00)
    • Mngmnt (7%) ($6,176.52)---plan on self managing but need to allow for it
    • Maintenance ($4,411.80)
• Total Operating Expense ($37,022.32)
• NOI $51,213.68
• Cap Rate 18.6%

Our lender does not want to allow us to use the full 20% from the seller. Instead they want to use 10% from the seller and have us contribute the other 10%. This is a sticking point for us the seller is allowing us an opportunity with virtually no cash out other than closing costs. We want to take advantage of that.

Any lenders out there interested in a solid deal like this? I have schedule E's, copies of leases, and building inspections have been performed. PM me for more information.

We recently got an 10 unit multifamily with a commercial space under contract in York, PA. Our usual lender has dropped the ball and changed the terms on us from what we have gotten from them on the previous three deals we have completed with them this year. We are in need of a new lender to keep this deal alive. Details below:

• Contracted Purchase Price $275,000
• Seller agreed to finance 20% down over 5 years and contribute $2k towards closing costs
• Building needs no works as the current owner has fully remodeled each unit including new roofs
• All units currently rented, approved for section 8 (if needed), and is current on all licenses/city inspections
• 20 separate parking spaces that can be rented each month for additional income (currently bringing $150 per month)
• Coin-op laundry on site bringing in approx $175 per month
• See below for property evaluation:
• • Scheduled Gross Income           $92,880.00
  • Less 5% Vacancy Rate              ($4,644.00)
  • Gross Operating Income            $88,236.00
  • Less Operating Expenses
  • Taxes              ($15,179.00)
  • Insurance        ($2,645.00)
  • Water              ($2,400.00)
  • Sewer/Trash   ($6,000.00)
  • Mngmnt (7%)  ($6,176.52)---plan on self managing but need to allow for it
  • Maintenance   ($4,411.80)
  • Total Operating Expense           ($37,022.32)
  • NOI                                             $51,213.68
  • Cap Rate                                    18.6%

Our lender does not want to allow us to use the full 20% from the seller.  Instead they want to use 10% from the seller and have us contribute the other 10%.   This is a sticking point for us the seller is allowing us an opportunity with virtually no cash out other than closing costs.  We want to take advantage of that.

Any lenders out there interested in a solid deal like this?  I have schedule E's, copies of leases, and building inspections have been performed.   PM me for more information.

Thanks

Ryan

Alan Charles is this a for sale by owner? If it is the one I am thinking of it has an elevator in it with a large lot and separate garage. If so, pm me and I can provide more details.

We work with a local credit union who gives us commercial loans for our buy/holds. They finance 80% and don't care where we get the remaining 20% from. To help us get started we found private investors to put up the down payment for us. These investors are given a 2nd lien position on the property until we have the loan for them paid back. To entice the investors we offer a 10% APR on their investment. We had to work hard to find those investors but they are out there.

@Robert Sepulveda 

Property #1 is a 3 unit purchasing for $40k with a value of at least $65k.  Two of three units rented currently.  Once we get third unit occupied should cash flow around $1200 per month  minus all expenses, vacancy, and capex expenses

Property #2 is a 5 unit purchasing for $95k with a value of around $130k.  All units currently rent, (1) unit is a small commercial space with a long term lease.  Cash flows should be a little over $200 per unit on average after deductions

Property #3 is a 8 unit property purchasing for $99k with a value of at least $160k.  All units currently rented.  Property seriously mismanaged some tenants have been on month to month for 10 years at the same monthly rate they had for their initial one year lease terms.  Building needs minimal improvements with the exceptions of rents being brought up to market rates.  Cash flow at market rate rents should be around $1800 per month after all expenses

Let me know if you need any other information. 

We currently have three properties under contract totaling 16 units settling in the next 30 days or so.    All three we have been able to get under contract for below market value.  I am looking for a lender that would be willing to refinance these in 6 months so we can get our down payments back out.  Can you recommend any lenders that work in Central PA?  

Anyone have any good recommendations on websites that might provide some details about crime in a specific area?  I've seen the info on Trulia and that seems pretty good but if that is as accurate as their market value pricing it might need some fine tuning.   Obviously, my purchasing decision won't be based on what I can find on one of the sites but it could be another measure to use.

@Michael Noto if you don't mind me asking, who are you using for your portfolio loans?  Do they only deal locally or do they lend in other states?