All Forum Posts by: Samuel Gates

Hello, 

I have a question about a business decision. My family wants to sell my grandparents home in Los Angeles it will be split between all the kids (grandchildren if the parent is no longer living). They are liking on Zillow and seeing a 800k price and want that split 8 ways. 

About the property: No maintenance has been done on the property for over 20 years, the property is over 100 years old, 2 bed 1 bath, the chimney is falling off, the basement is flooded and the roof is sunken in. and it is near USC.

Goals: To build a multi-family apartment since I do not believe it is worth it to remodel the house. 

I am confused on what is the best strategy to take. I know that I want the house appraised to get the true value of the property as well as what needs to be repaired as well as what it would cost to build a multi-family apartment. Any insight or help would be much appreciated.

@Todd Pultz thanks for the advice, I will go to Hud reporting. I was trying to use the Cap Rate in the area to valuate this 8 unit. I wanted to make sure that I was not to overpaying for the property. 

This is all good information. I have a side question. I see a lot of people from Illinois. Would anyone know the Cap Rates for commercial property in Belleville county?

Hello David,

I know that St. Johns bank in Saint Peters MO does 15% loans.

I want to find the Cap Rate for a specific area. I am looking in the Belleville IL area but I am having trouble finding the cap rates. I checked with a few property management companies and they weren't able to give me a clear answer as to what the cap rates were in the area. Any suggestion on how to find out this information?

@Jonathan Taylor  Awesome! This is what I believed but, wanted to confirm. I have few more questions on that note.   

1. I am working with a Real Estate Agent in Illinois and wanted to know if finding a Commercial Real Estate Broker would be crossing any lines. The Agent has a bank they work with and while the downpayment percentage is good they do not have the best rates.

2. I want to do creative financing but wanted to know if any form of creative financing is looked down on by the buy/agent if a deal is already listed.

Thanks,

@Jonathan Taylor

I am in the Southern California area and I am looking into investing in Los Angeles or Illinois. I have an 810 credit score and want to shop around for the best rates but also do not want to have a number of hard inquiries on my credit. Would a broker be able to shop multiple rates available to me or would an online service be more appropriate?

I am ready to begin the process of purchasing my first multi-family rental property. I want to get pre-approved and wanted to know if it is better to go with a lender that the Real Estate Agent recommends or find my own Commercial Broker. 

Just a little background, I live in California but I am looking for propertiese in Missouri. When speaking with Real Estate Agents they often have a preferred lender but it is very hard to get a hold of them or they will inform me that they only work on residential properties. 

Also, I am open to doing creative deals but I am a little confused to if they are only doable for off market deals or if creative deals can be done with market listings?

Thanks,

@Bjorn Ahlblad

Thank you this is really useful information!

@Greg Scully

Sounds like a great plan. I wasnt sure when i should start making these connections but sooner is better than later. Yes! the car is nice to drive.