All Forum Posts by: Chris Winterhalter

Thanks Bill! Most of the opportunities are mixed use with commercial space on the primary level depending on how it is developed. I am wanting to stay between the 150-300k price point for finished retail pricing per unit. Have you been developing lofts in Springfield?

Kenneth,

This is a great question but I would be asking yourself several more questions:

-Is the 50k the only capital available for real estate (outside of the 1st mortgages)? Meaning if the 50k is depleted are there additional reserves available.
-Is the investor new to real estate? If the answer is yes then quickly turning around the 50k to use on other deals will become more difficult. ALL investors need to have reserve capital so it is essential to maintain certain capital levels based on how much risk exposure you have. I.e. if you are doing your first rehab then you will need more capital reserves than someone purchasing a 5 year old rental property.
-What is your investment philosophy? You mentioned highly profitable cash flowing rentals? Does that mean single families in C areas or multi-families in B areas....does that mean finding distressed properties and forcing equity through rehab? Knowing this helps guide the answer towards you specifically.
-If carefully planned and executed you can purchase properties and refinance after 1 year to pull out your invested funds. The key is making sure you have substantial equity to warrant the LTV needed by the lender. I'm sure mortgage professionals can weigh in on this for specifics on rental properties (1-4 units). But be careful when planning your costs...you will have closing costs on both the buy and refinance side along will all the other associated costs i.e. rehab, holding costs, insurance, vacancy, taxes etc.

Figuring out your plan to maximize the ROI on the 50k is really going to depend on your philosophy.

Hello all real estate investors and professionals!

I'm new to BP and wanted to reach out to the investors/professionals in St Louis and Cincinnati. My business is currently located in St Louis however I have plans to transition active business to Cincinnati within the year. We own around 55 units consisting of mostly multi-families with a few single families scattered in. I've been extremely active in redevelop both on the hold and sell side for the past 4 years. Wholesaling has also played a small role in my business over the past four years. My transition to Cincinnati will involve a new chapter in my business. I'm still hammering out the details but historic loft conversions are a big part of that plan along with multi-family redevelopment (hold). I would love to hear from the St Louis and Cincinnati investors/professionals.

Thanks!

Chris Winterhalter

I just purchased a 20 unit building and need to repair and coat the flat roof. I've used elastomeric coatings before and have been happy with the results. However I have a few roofers stating that fibered roof coatings are better for more distressed rubber roofs. I've gotten about 4 opinions and it is 50/50 with elastomeric and fibered roof coatings. Any landlords out there that have used these products with success for 5 or more years?

Some great input here on valuation...I would like to add that older and/or historic buildings can make sense with tax abatements, historic tax credits, low income housing credits, city grants etc (where applicable). These can be extremely difficult to obtain and many times don't make sense for lower income housing due to what is dictated. However they can sweeten a deal or make a deal that is borderline - profitable. Not for beginners.....

Most of what we own is 80+ years old. I try to purchase properties with known HVAC issues especially common HVAC set ups. If the property is priced accordingly to warrant the repairs then individualizing the systems can make sense. This generally makes for a good value play.

Patrick,

I would search for another local or regional bank to handle the financing through your LLC. More than likely you and your partner will be required to personally guarantee but the lien issue on the owner occ property would be less of an issue. They will still want to make sure you and your partner have good global cash flow. If your partners DTI is poor then you will have to pursue more creative routes.

Chris Winterhalter