All Forum Posts by: Darryl Dahlen

I'm a bit curious as to how you spent a 1000 dollars for this lead when in your first post you state the owner is a friend.

That said, why do you want this place? If the rent barely covers the mortgage this is s a horrible deal. Given your stated financial weakness, the property might end up putting you in the same situation as the current owner.

If you lose a tenant for a couple months or run into a large capital expense, or both, what will you do then?

Eli is on the right path since it's also important to assess the cost of borrowing money, should you require financing, and factor that into your return on investment.

Now that Facebook has priced their stock offering in the $28-35 range is anyone thinking of picking some up?

I'm tempted to, but even though FB is a huge company I'm not all that sure their stock is a "sure" bet.

However, it would seem likely that the stock will go up somewhat given all the hype over this IPO.

Thoughts?

Most likely, you have nothing to worry about. As mentioend, the seller is almost certianly on the hook for the realtor's commission, but it will be spelled out in the purchase and sale contract.

My SBA lender states that the SBA puts the burden of liquidating the property squarely on the bank that originated the loan. As such, each bank deals with the property themselves, and while they typically list the property with a RE agent, there isn't (to the best of their knowlege) a central site where potential buyers can view a mass listing of SBA foreclosures.

This is most definitely possible. SBA loans that go into default are handled by the special assets department just like any other default. Banks can even handle these situations as a short sale and can also originate a new SBA loan to replace the one that defaulted.

You've left out some important information such as purchase price and occupancy level. If the occupancy is low, and by low, I mean lower than 85-90% you will have trouble finding any conventional financing.

That said, you've already gotten a realistic range of how much you can expect to put down.

More than that, considering this is likely to be a smaller loan amount it will almost certainly translate into a full-recourse loan. As such, your credit, income, and assets will factor into the underwriting process. The fact you have no landlord experience will likely not go over well with lenders given the number of units. Hopefully, your father's experience can make up for that. Does he have multifamily experience or is it relegated to residential property? Is there existing management in place?

I can't tell you what terms you can expect based on the lack of info, but with regards to the actual term of the loan you could feasibly expect a 5-year fixed loan with a 20 - 25-year amortization.

What Bryan said.

Given the small loan amount this is definitely a local bank/credit union deal. Most banks have aggressive programs for smaller CRE deals so providing your numbers are above board I don't think you'll have too much trouble with this.

Thanks Jon!

I could take this scenario to a bank in Texas that I have a relationship with, but there is no way to close that fast. You'd be hard pressed to get hard money that fast.