All Forum Posts by: Sean Morrisey

I have a commercial note with US Bank on a 5 year balloon (expires 2/2021) and I have a nice equity position I would like to access with a current 1.88 DCR.

Recommendations for Illinois commercial lenders I can refinance with?

I would continue the 4 unit strategy and utilize Fannie/Freddie financing at 30 year amortorization until you cap out. Then, look into commercial financing. Always try to use the BRRR method when you can!

Keep it up!

I recommend following Dave Foster here on Bigger Pockets. He's a 1031 expert and has made a lot of great discussion points as well as was a guest on my podcast "Landlording for Life" and discussed 1031 exchanges.

What are the best ways to source self storage facilities for sale?

I use Realist for contact addresses and Spokeo for phone numbers.

@Patrick DanielIm certainly no expert at it, but, the better you understand what your village wants to see and where developments changes are happening, the more opportunity you will find in creating value.

I think it’s better to establish relationships with brokers in your marketplace rather than going gung-ho in being a commercial broker. Simply because I think it’s very difficult to become the brand name for multifamily owners in 100% of your local market.

Most of the proformas I receive are in the high 30s and low 40s in terms of expense percentage. I would use 50% to stay conversative.  Numbers are getting tight in all markets, so, take your time in sifting through the proformas provided.

Chris -

While the answer to your question relies in whether the units are considered habitable, assuming they are habitable with 90% occupancy, I would recommend you identify the units that need the most amount of work.  

Personally, I would not begin work upon the lease term is terminated and not renew the lease terms for the units that need the most amount of work.

Go at a pace that your cashflow is comfortable with and factor an additional 20% as operating cost because of unanticipated turnover and rehab cost.

As units are turned over and renovated to your liking and reflect the class of apartment you would like to maintain, raised your rents with each new tenant that moves in.

I do not believe in putting tenants in temporary housing unless an unhabitable situation has arrived.  Your cashflow will diminish very, very quickly.

Hope this helps!

Sean

I am not concerned about age of building...it's really all about location and the opportunity for value add and increase the net operating income.