All Forum Posts by: Pete Schwan

Have For Sale a Self-Storage Project, fully permitted, in Peabody, MA. Contact me for details: 617-515-2322

Helping a client find a buyer for their condo in South Boston. Beautiful unit 2Bed/2Bath, parking, etc. DM me for details. 

Thanks, Pete

Hey Brendan, congrats on discovering a passion for the real estate game. It's very fun and rewarding, both personally and financially. You're asking the right questions and with some more information I could help answer the other questions you'll eventually come to. I'm an investor/broker/property manager on the North Shore, with tons of free time (at the moment due to COVID). If you want to hit me up with questions, I'm happy to help, to the best of my ability. All the best. ~Pete

So...I recently bought a property planning on using the BRRRR strategy. I used a private lender because this property was a "3 Season" cottage on a lake and didn't have heat or insulation, and therefore wouldn't qualify for a conventional mortgage. The purchase price was $65K with a professional appraiser's ARV of $130K. I put 20% down and the private lender came in with 80% and added a $20K construction loan. I've completed renovations and am thinking I can do a cash-out refi, take out the private lender and access some equity for another investment. I put the property in an LLC, thinking this was the right thing to do.

So now I'm calling all the QuickenLoans and Loan Depot's of country and no one will touch it because: 

A) Its not my primary residence 

B) I haven't owned it for a year 

C) The private lender isn't reporting the monthly payments to a credit bureau so I don't have a verifiable proof of payment 

D) Been doing AirBnB, so no lease (if I wanted to get 2nd home or rental property financing)

Solutions I'm aware of: 

1) Most loan officers have suggested I call a local credit union, which I have done> The credit unions are concerned because it's not my primary and I don't have lease in place with proof of payments via bank statements. And also concerned about the property being owned in by LLC (I'm the sole member).

2) I could "make it my primary residence" temporarily but that would mean changing all my info to receive mail at this location. I live 4 hours away from the property and would need to have my property manager mail me my mail. 

3) Ask my private lender to refi the loan with him and give me a more favorable rate.

If anyone has been through this before please comment and offer some advice. I thought this would be straight forward but I guess I didn't do my homework.

Thank you BP community!

Looking for Single Family builder to partner with for two rare off-market lots in the most expensive area of an expensive suburb of Boston. Only six homes have sold on this street in the last two years. Lots to be sold with permits in place for five bedrooms on each lot. 

Avg. Liv.Area SqFt: 5,296.17 

Avg. Sale$: $1,429,333 

Avg. Sale$/SqFt: $272  

@Rich Thomas Thanks for the response. My apologies for the delay in answering your question. The data is saying that the millenials will need housing when they get married and start families, no question there. Will they want to move to places like Salem? My guess is, quite possibly, especially because of the commuter rail. I would also put Worcester up there as a place likely to steadily appreciate due to the shortage of "work force" housing...Lowell...I'm not sure what type of communities millenials will gravitate towards, but it is something I will be watching closely in the next 2-5 years. @Michael Fratalia: It was a luncheon put on by CoStar. 

@Kevin Dureiko: Straight acquisition is the likely scenario, maybe some renovating. 

Hello BP Community,

Currently working with a religious organization that needs financing for a new church. They have all their paper work in order and about $70K for a down payment. Does anyone know a good lender for this type of situation?

Thanks,

Pete

Recently attended a great seminar hosted by the #1 commercial real estate platform in the country. The focus was on Multi-Fam Outlook Nationally and in the Boston Market. Because I know the Boston Market, I was able to cross reference the data they presented with what I'm seeing in real life. They seemed to be spot on with what happened from 2009-2016 and with predicting the construction trends. 

My question to the BP Forum is whether or not the national trends are consistent with what folks are seeing in their respective markets. To summarize the presenter's main points:

• Since 2009 rental housing demand was outpacing supply until mid 2016, when supply finally caught up with demand
• Nationally, homeownership is low which has kept rental housing demand up
• As a nation, we are significantly under-housed
• As the Millenials begin to get married and start families there will be a significant increase in demand for "work-force housing" or "starter homes." The majority of the inventory is studios and 1-Bedrooms (in the cities).

Conclusion was essentially that Baby Boomers are down sizing and Millenials are going to need small Single Fams and this is going to create a huge demand for "Work Force Housing" for the next 10 years-ish timeline. This is in Small to Mid-sized markets, not the biggest cities in the nation. Anyone agree/disagree with this forecast? Thanks! ~Pete

Off-market opportunity in Boston Sub-Market. One solid tenant who has been regularly updating the property. 

• Asking 1.3M
• Gross monthly rent $6500
•   Triple Net
• 5% annual rental increase 
• 1 year into a 10 year lease

Contact me for an NDA/Fee Agreement. Upon signing I will send you the details. 

Thanks,

Pete