All Forum Posts by: Jimmy Murray

Agreed with @Andrew Beauchemin, I think you have a great handle on your options.

Based on how desperate the seller is there may be a couple additional options such as the seller holding a second position in lieu of your down payment OR the seller selling you the property Subject-to existing financing.

Interesting perspective all around. In my experience Hard Money Lenders are mainly focused on Asset Based lending and the amount of financial risk they have in the deal. I would imagine if a buyer was bringing a larger down payment credit would not matter because there is a higher margin of financial safety for the hard money lender.

@Camilo Rey One major line item that I would include is Capital Expenditure. These are larger scale infrastructure improvements that you may have to depreciate rather than deduct within your maintenance line item. 

In Rhode Island tenants legally have until the 15th to pay before we can begin the eviction process. We clear our billing on the 16th and have funds wired by the 20th of each month.

@Josh Stack I typically use 8% Vacancy, 5% R&M, 5% Capex and 10% property management in my model. It is way safer to build a conservative model and have a financial surprise to the upside.

@Ryan Hebert I like where you are headed. I think Fall River is a great emerging market. 

From an economic standpoint there is a lot of development going on there with Amazon, the Tiverton Casino, Healthcare and the Development of a large shopping complex. 

Cap rates have trended down a bit as money has fled out of Boston to chase higher returns but there is still a BIG capital appreciation play over the next 10-15 years.

@Joe Villeneuve Makes a great point! Putting additional dollars down in order to generate a high cashflow is typically not a great use of your money and drives down your Cash on Cash Return.

@Robert Ortiz I agree with the 80% number you mention. A majority of units in Massachusetts are not Lead Certified. Receiving the Lead Certification is typically a major hurdle as most buildings were built in he early 1900's.

I would argue that a building is significantly more valuable if you have a Lead Cert based on the fact that it opens you up to a broader tenant base. 

My advice would be to complete the lead work prior to placing an available unit on the market.

@Antoine Martel unfortunately it sounds like you are speaking from experience. Screening a property manager is just as important as screening tenants!

Lyon Property Management is looking to grow!

We currently have an opening for a part -time showing agent. This role would require work in the evenings and the weekends in order to place great tenants. 

Placing tenants is the life blood of our business and recognize success starts with a great showing agent. 

The compensation for this role is Commission based per placement with a monthly residual for all tenants placed.

Check out our website to learn more about us - Lyon Property Management