All Forum Posts by: Edward C.

I have in investor friend who over the past year has purchased and rehabbed 3, 2 unit properties and now has them fully rented. He was able to secure the properties for less than 50% ACV and has done all the repairs himself. Hence he has done a very good job.

He’s using hard money lenders for these projects on a one year balloon that is coming due. Also do to the over leverage he has run his credit to the lower 500’s with the rehabs. The investments are good and he’s pulling in over 40K Net after debt service insurance and taxes.

He has lost his job so this is his only income.

After discussion we thought that perhaps there is a way that he could sign over 2 of the properties to my LLC so that I can secure a good credit and then do an owner finance back to him. Would this be Legitamit?

I’ve never done an owner finance before so am looking for advice if this is the best option as well as any other brain storming ideas. I'm trying to help him out to keep him afloat, he is very good at finding and securing properties and he would be getting more if he didn't hit the leverage ceiling.

Location is Fairfield County, CT.

I thank you in advance for any advice on this.

Thank you, That's what I needed to know.

Cheers

Just Speculating;

-Is the paper in your name personally or in the name of your LLC?

-Depending on your relations ship with this competitor perhaps you can partner up?

-Can you do it under a Joint Venture with your LLC?

-Could you open up another LLC and do it in that one with a JV.

83K to 115K looks very good to me, How much more is the ARV to make this spread worth doing this vs just keeping to the original plan of doing/keeping it all yourself?

Hi every one, I’m looking at Purchasing an estate of 2 properties with 6 buildings a total of 52 units in disrepair (residential). I’m trying to get the numbers to work with but I’m having trouble working out the Cost. It’s too close to the East Coast shore so I have to follow the 50% flood rules.

Is there a quick method to calculate a rebuild if I needed to go that way, Like $20 per sq ft or something like that?

Two story Building but if I needed to rebuild I would have to raise them up to the flood level, creating 3 stories with parking underneath at ground level, 'living on the second and third floor's'.

There on Concert slab now, no basement.

I’m not looking for specifics at this point just a quick way to run some fast numbers to see if I’m even in the ball park.

Thank you in advance for any help or suggestions you may be able to offer.

Hi Karen, and Thank you, I’m actually looking at the rough numbers at this point for building the units themselves for high end luxury apartments to see if this is even possible before I spend too much effort on this one, I’ll be able to get Accurate numbers latter after I speak with the City officials.

The Rehab, any demo, holding costs, Eclectic, plumbing, HVAC, would be another issue all together.

I think I sent this request in a little prematurely, I should have a better Idea of the Appliances, trim and materials needed for this project in a little bit. A spoke to an acquaintance that specializes in high end homes and apartments, yesterday after I sent this in to BP, and he instructed me to check out similar units around and see what kind of appliances, trim, and materials there using to get a better Idea of the cost. I should have that done over the Holiday weekend.

Merry Christmas every one.

Hi Chris, thank you. I understand and I’m just in the preliminary stage at this point and looking for some general numbers to see if they pencil out before I go farther. I have an appointment with the City’s economic developer and with the Historical society to get more information as far as construction, and challenges with past developers that couldn’t or wouldn’t go farther with it.

There was a proposed shopping mall at one point for this property that never went past the planning stage.

I’m looking 5 floors of open space and would have to include framing from the start. I’ve asked around locally as well, and for High end apartments I’ve received a few quick estimates of about $100,000 for the units (appliances, cabinets, floors, walls, ceilings, and lighting) plus ‘as Karen mentioned’ the Electrical, plumbing HVAC and such. I’m looking at easily half mill for 25 units I believe. I should have a better idea of the cost after I finish looking at similar units in the area.

I’ll have more questions after I speak to the city officials and will re post on this.

Cheers

Looking at working a deal to convert a commercial manufacturing building in to a 25 unit Luxury Apartment complex.

To just get started on the numbers would anyone have an idea of sq ft cost to make this happen for 1,000 to 2,000 sq ft apartments in the New England area that would rent for $3,000 to $5,000 a month?

It’s currently an open floor plane on all floors and would have to start building the units from scratch. Building construction is concrete exterior.

Thank you for any helpful suggestions.

Awesome, Thank you.

Hi Sean, what do you mean solo 401K, you mean my own personal 401K? No this 401K is from a day job with lots of employees. Do you mean I need to show that I’m borrowing from the 401K as a Solo business with no employees? It looks like just a standard personal loan application.

Please elaborate.

This is Great, thank you Loren, Jeff, and Doreen. Looks like the 401K loan is the way to go. Loren, the Deal is getting closer but not yet closed, and I'm strategizing funding options. I would be involved in planning the rehab, but the work will be a contracture.

From what I understand if I use the IRA, then all profit from this deal would also have to go back to the IRA, I'm thinking that a loan against a 401K would not have the same rules. Yes?