All Forum Posts by: Steven Huang

This may be an old thread but are the lenders requesting to see your expenses on a trailing 6 or 3 month operating statement? Or are they just looking at the gross rents from the leases you have on file and using their own proforma to calculate your NOI? (I'm specifically asking for something like a 5-12 unit multifamily)

Hello all!

I'm an investor based out of Vancouver and am currently under contract for a 12 unit property in Edmonton. I'm looking for some input from locals who are familiar with apartment cap rates and can help scrutinize the deal for me. The property is located in Canora and is mainly 1 bedrooms with bachelors and 3 beds mixed in. Most major improvements have been completed and 4 units have been recently renovated. Property is currently fully occupied. 

Purchase Price: $1,3740,000

Gross income:$128,000

Expenses come out to a bit over 50%

NOI: $61,000

Research I've pulled on Edmonton indicated that cap rates for low rise B buildings are between 5-6%. I do feel like this deal is overvalued and I'm wondering if any local investors can chip in with their opinions on the value of this. How is the market for small multis moving?

Thanks!

Hello all!

Looking for help from those who know zoning regulations in Georgia, specifically in East Point, metro Atlanta

I purchased a multifamily property a few months ago where I found out after buying it that the city had gone and changed the zoning from multifamily to single family a few years. I've stopped rehab work on it since the city won't give permits to finish the interior back to a 5-unit because of the zoning and the work is going to cost a lot more than anticipated so the property is sitting gutted and just a cash drain. I'm looking to sell it for what I can, but since rezoning it back to multifamily so that the current structure is usable could raise the value, is it possible to start a rezoning process while simultaneously marketing a property for sale, or in the case I find an interested buyer, could I sell it to them and then have them pick up with a rezoning attorney where I had left off in the process?

Thanks in advance for reading this post and any advice you guys have!

Steven H.

Matheis,

I'm assuming the property is completely empty right now if it needs that level of repairs on it. What's the going cap rate in the area this property is in right now, and how are you coming up with the NOI?

I think it's going to be difficult to get 100% financing unless you go to private lenders, especially if the property is completely vacant right now.

Got it, thanks a lot Rick! The regional/local banks I've talked to in the past refused to work with foreign owners, but I'll keep hunting.

Okay, Thanks a lot J! My family and I have a lot of equity just stuck in properties that are cashflowing already but no US bank will offer us a loan to pull it out!

J, where did you find your portfolio lenders in Atlanta? I'm stuck in a situation where I can't get conventional financing because I'm foreign but have a cashflowing fourplex that I purchased with all cash and I'm wondering what a portfolio lender would look for in order to underwrite a loan.

Jason,

Welcome to BP! It's great to see other fellow young investors looking to start out in real estate!

Regarding your post title of "Young, naive, and clueless," there's a few more hurdles that a young age brings, but naivety and lack of knowledge can be improved with some education. That's the big first stepping stone, along with saving and building enough funds to begin putting towards properties.

Shoot me a message, and maybe we could meet up. I'm currently living at UBC but go back to Burnaby very often.

Congrats! Are you buying and holding?

Personally, since I live out of state from where I'm living. (Heck, I'm out of country!) It's difficult for me to create my own marketing system for off-market deals so what I did is just reach out to as many wholesalers as I can, vet out the ones that are tirekickers, or don't know how to run the numbers properly like an investor would, and then focus on the one or two who are actually sending me viable deals and work with them. It's much better than going into bidding wars on the MLS.