All Forum Posts by: Scott Garber

@Dustin Lauer. Let’s chat, can you message me.

I have used the same bank to purchase 3 SFR and 2 duplexes which are cash flowing very nicely. I came across a deal on a 6 apartment property which originally was $349,000, reduce to $299,000, and the owner agreed to sell it to me for $199,000. He’s an 83 year old gentleman who’s owned the property for 50 years and due to his age he has neglected deferred maintenance the last couple of years, and has not raised rents to fair market value. I thought the bank I was using would jump at this, as it cash flows and has the potential to cash flow even more once I raise the rents and decrease the water bill. My options are these: 1) look for a commercial lender in PA that might take this on. 2) get a partner to go in all cash, bring it up to par, and refinance later. 3) hard money loan. I have assets, multiple properties, multiple businesses, and a pretty strong balance sheet. With the stock market down considerably I don’t want to sell to cover this property but have enough cash for the down payment. My credit is over 800, so that’s not an issue. Do you have any creative ideas, lending contacts, or know a private lender who might be interested? Thanks

@Bjorn Ahlblad Thank you for your response!! That is the goal here to increase revenues while I keep the costs under control. The prior landlord is 83 years old and hasn’t kept up with the raising rents or deferred maintenance, so getting it cleaned up and reducing costs are a home run

@Aaron H. Thanks for your response!! What is RUBS?

Greetings,

I started about 18 months ago buying SFR and duplexes which i would buy, renovate, refinace, and repeat. As of now i have 3 SFR's and 2 duplexes that are all fixed, rented, and cashflowing great.

I decided to take the next step and made an offer on a 6 plex which consists of six 1 bedroom/1bath in a C+ type area.  currently they are all rented, below market rate, and can be rented for 3,600-3,900 per month as opposed to the 3,050 that it is currently.

The owner is currently paying water/trash/sewer which is $450.00 per month for water and $150.00 for trash.

The starting price was 299,000, i offered 179,900, and the owner countered with 179,000 if i picked up ALL the closing costs (roughly 14,000) or 199,900 which is a 100K under the original price.

There is some major cosmetic work which needs to be done to get them up to the 3,600 income (will cost about 6,000 per rental)

So here are my questions;

1) Can i remove the tenents if there was a lease in place prior to my purchase to get the apartments cleaned up?

2) Can I cut some of that big water/trash expense by sub-metering the water and passing it on to the users?

3) The bank that i've used for the other purchases are starting to make it tougher due to my loan to debt ratio, what other options should i consider for financing?

I am so excited about this deal, but want to make sure i'm not missing major details.

@Collin Schwartz what a great inspiration and amazing journey. I love and appreciate your guidance and humbleness in helping others to grow.

@Sara Barb I’d love to hear how you’re starting your own property management company. I’m in the same boat but need direction in getting started.

I have a cash investor that wants to lend me $60,000 but only wants to give me cash, no checks. My bank said anything deposited over $10,000 must be filed to the IRA, yet my investor wants to remain anonymous. How can I do this legally?