All Forum Posts by: Sachin Amin

@Remington Lyman please ignore, its complicated...i will post back once we close the deal on what we had to do with zoning etc... many lenders decline to fund the loan as the zone was commercial and fanni and freddi backed lenders would not do commercial zoned properties...(even though its 4 unit)

@Remington Lyman yes that's the direction we are headed, but do you think zoning will impact (if its marked as commercial, but used as residential??)

@Stepan Fedetskiy section 8 can be good option if you have a good PM who maintains the property in good shape all the time as per the needed standards. best part is govt pays a portion of the rents so you dont have to chase tenants, downside the upkeep of the unit will eat up appx 20%. so its little tricky..sounds good on paper but when you go through one you will get an idea. i had 4-5 section 8's , 3 of them had no issues, but 1 of them had lot of issues and ate up all the profits.  

@Gabriel Graumann actually this is a multi unit property where there are 2 parcels (2 building adjacent to each other 4 units on both sides).

we are working with a lender who has agreed to do a conventional loan as it has only 4 units on each side (so 2 applications) - lets see how things go.

@Remington Lyman 2 separate parcels

Hello Experts,

Background: we are working on a 8 unit deal (2 parcels x 4 units on each building) - we thought this would fall into residential loan and we almost completed the paperwork, but the lender came back stating they cannot proceed forward because the zoning is classified as commercial. lender is asking us to work with listing agent/owners get it re-zoned as residential. (don't think we have time or knowledge to pursue that) . alternatively the lender has asked us to work with a commercial lender.. we have not done any commercial loans so far, but basic research provides core diff is the 30 yrs vs shorter duration 10-15yrs in commercial + ARM (floating).

Do you think its worth spending time rezoning by working with owners/listing agent or just get on with commercial loans and close the deal and deal with re-zoning once we own it for future purpose. (is it OK to not re-zone at all?)

Cheers,

Sachin

@Kevin S. understood. 

Thanks for insights @Chris Seveney. I was also wondering if the investors were to be friends and family do we still need to go with this model or can we have an internal agreement. Most of the family and friends are willing to invest with us as we give them a steady return %...do you see any issues with that ?

Hello BG experts,

looking for some guidance on how to structure a syndication model. we have spent lot of time securing 5 investors for a deal we are working on. In past mostly we had family and friends who invested with us to get % return. We are at a point where we are scaling our operations first time and have external investors who are willing to put in $$. I did lot of research on PPM and Operating agreements for syndication. Any referrals who can help structure our deals. I know there are syndication attorneys but they charge anywhere from 5k-10k , is that worth investing in or can we just come up with our own agreement with terms and conditions ?

Any guidance on this would help us a lot making the right decision and taking the right path.

Cheers!!

Sachin

any Investors impacted with Hurricane Ian, I heard lot of damage in Cape coral , Fort Myers, Punta gorda etc...the whole west cost of FL seems impacted. How do you deal with such a catastrophe as REI. I am sure you have coverage and insurance etc... but what happens to tenant living in your unit or how to you react when you are out of state investor, what are your immediate action items etc.. - how do you even start ? do you just leave it to your PM to co-ordinate or as a land lord - boots on the ground ?

Please share your experiences