All Forum Posts by: Christopher Telles

 I guess some folks would rather keep their numbers private. I too was hoping some of the affluent neighborhood investors in So Cal would be able to provide budgetary guidance.

Whole heartedly agree. Residential agents unfamiliar with CRE tend to me my best deals. I purposely create and send a full proforma showing the deal as it exists before value adds and or re-tenanting to show and support my offers.

 In the case described I think @JoelOwens has given you a might fine ownership option that limits your downside risk. 

Novice investors tend to ignore the beta in any given real estate transaction when it should be a major consideration particularly when working a creative financing transaction. 

Case in point, you've admittedly stated you're willing to overpay for a property in order to in essence create additional value through a value add play. Your exposure to additional risk is at its highest when you must create value to simply get back to a market value. 

Market value is defined as what buyers will pay for a property when it is placed on the open market for sale. And in this case it appears that value is less than what you are willing to pay for creative financing terms.

There's one truth you should look towards as a value add investor and that truth is that "you make your money when you buy the property" not after you've improved the property.

There is a reason this seller is not improving the property prior to sale. It could be a variety of reasons which you have not stated, and any of the variations on that reason could be true or dubious, but in the end there are very few sellers who will part with significant potential gains to save on improvements or the time it would take to turn around a property when they themselves have the means to carryback the financing. 

I agree with an earlier comment that there is a definite red flag. Tred carefully, and don't let greed skew your view.

Cozy Hotels

Modern Hotels

Liquid Hotels

I use it daily. It's not a list service rather it's an ownership database with the ability to filter searches meeting your buying criteria.

Login in and contact them via chat or call'em. Under $100 mo

Forget about lists. Go to http://prospectnow.com and sign up for their monthly service. It's ridiculously affordable and in most areas they'll have all the ownership information you can ever want with the ability to print mailing labels via .xls files.

The simple answer is that all commissions between property owner and listing agents are negotiable. Typically a leasing commission for both sides is between 5-6% which would be split if there was a listing and also a procuring agent.

Leasing space to tenants isn't always just about money. There are variables and terms where an agent can be very helpful and perhaps add value to your transaction. 

Unless you have been down the leasing road and have some experience evaluating lease comps and know some of the leasing variables that could impact the property's financials then I recommend you consider hiring an experienced agent to represent your property.

In all likelihood you're going to pay at least a brokerage commission to a cooperating agent who brings in a tenant. It maybe very likely you'll be able to recapture at least the amount of that commission through the terms negotiation your listing agent could help you negotiate.

1. It depends on the physical situation of the utility meters, in addition to what's regionally acceptable rental practice.

If the utility meters are separated per unit you have an option as the landlord to require each tenant to subscribe to their own individual utility service(s). However, if the utilities are service through one main meter then your option become cumbersome to bill out prorata. You'll then need to find a fair approach to ensure you're actually billing for an estimated quantity of service.

2. Go back and listen to those podcasts to find the individuals speaking, and then follow their direction or links to the leases.

 Correct me if I'm wrong, but wouldn't there still be an operating time period requirement from the lender for a going concern? If not for the business assets for the 'existing borrowers business' that'll be occupying the property.

I know the lenders in SO Cal have a going concern requirement of three (3) years as part of their borrower qualification criteria. This is for both the national and regional lenders too. 

 Get an authorization letter executed by the seller, if possible have the letter notorized. With this letter the bank should be willing and able to communicate with you.

As for the discount on the lien, you might create a situation where you are helping out your "friend" and insinuate through the conversation your "friend" is trying to avoid bankruptcy (which would wipe out their lien) if this lien along with "other" financial obligations can't get resolved. Followed this with an offer of say 25 cents on the dollar. 

You won't know what the bank will do until you ask. So ask!