All Forum Posts by: Samyak Rai

Hello,

I will be buying my first investment property in America in Phoenix this year. I have low capital requirements so I have looked into creative financing options like seller financing. My mortgage broker also recommended a 25-year amortized commercial loan with a balloon payment at the end. This loan will require me to put 20% down. 

My question today is how I can get another loan to cover most of my down payment as well, as it would be preferable if I only had to pay closing costs (I know, I must be dreaming right!). I know people do this, but I do not understand the mechanics behind this second loan. Since the primary commercial lender will have the first lien on the property, what assurances does the second lender covering my down payment get? Furthermore, does my primary commercial lender need to know that I am doing this, or do they not care where I get my down payment from. 

Assuming I can make a property cash flow with 2 loans at high-interest rates, I would appreciate any insights this community might have on how I should approach the second loan, everything I might need to know, and any educational resources where I can read about this in-depth. 

Thanks,

Samyak

 Thank you for your response! That is a great idea! I signed up for the meetup app to find REIAs around my area. The only problem is I am in Connecticut right now and will be moving to New York in a couple of months where I want to work. Regardless, I will attend a couple of meetings and I can always join new groups when I am in New York. 

Hello all,

I have previous experience with real estate in India, and want to diversify my portfolio my hedging different locations. However, the game works quite differently here. I'm well on my way to educating myself, and have found the beginnings of a great team. 
I want to work in a successful real estate company as I feel I can learn a lot from big wealth generation models and management techniques such companies employ. In essence, I think it will be invaluable for me to work under someone for the experience I can gain which will fast track my learning. 
I have experience in supply-chain optimization and some experience in developing, but really want to work in a more acquisition-facing role like evaluating properties. 
If anybody has any suggestions what kind of job position would suit my learning needs or has a particular company in mind, I would really appreciate your thoughts! 

-Samyak Rai 

Apologies, meant to say: a note stating you will not be renewing your tenant's lease.

Hello all,

I am currently analyzing a 9-unit MF in Manhattan. 8 out of the 9 units are rent stabilized, which really affects my cashflow. I know you can convert RS to FM by giving in writing, a note stating that you will be renewing your tenants lease, at least 60 days before the lease naturally comes to an end.

So I have two choices here, either buy at a lower price right now, accounting for actual income, and then later convert some of the RS units into FM, but NYC law states that some percentage of your units must be RS. The only way I see to get around this is convert the MF to designate them as 'condos', which do not need a percentage of RS units. 

I would really appreciate it if someone could help me regarding what the process of converting apartments to condos looks like, or if there is any other way to achieve the higher cashflow I will get if all the 9 units are free market. 

Best,

Samyak

Hello all,

Recently found a CRE MF deal in Manhattan that looks right to me, but I would love to get more eyes on it to see if I am wrong. I am attaching a link I generated from the rental property calculator here on BiggerPockets. Any feedback is appreciated!

https://www.biggerpockets.com/...

 Thanks for the link! Found some really important information on there!

Thank you for your response. Coincidentally, I actually started reading the millionaire real estate investor a few days ago! I am achieving the 1.5 DSCR through a higher downpayment so that getting approved is less of a hassle.