All Forum Posts by: Tim Davis

@Mike Hern

You make a very valid point. Thank you!

I am searching for an experienced mentor to help me expand my investing. My local market, Reno, is priced out of my range. I have $100k available to work with and am aiming to find markets around the country that are more affordable with better returns. I'm not inclined to use my local REI group cause I want the best. Where do I find someone on BP?

From what I can gather an equity waterfall applies after the property is sold? LP gets their initial investment and preferred return. Then the GP gets a catch up of say 20%. Then the LP-GP split is 80/20.

What if I don’t want to sell the property and hold the newly constructed building long term? What if I want to pay back the investors that funded the equity portion of the cost. How do I structure paying back the investors with their returns then keep the building for myself? Is that thru just a refinance. Trying really hard to my head wrapped around how to do that. Please help!

We are looking to build 2 8 plexus in a town of 9000 with current 100% occupancy rate in Nevada. The market is screaming for multi family and we are hoping to answer the call......as soon as materials costs drop. The City is begging us to build it as well as the property managers in town. The city has said they will work with us to get the project done.

We have put our team together with engineering and construction but have ran into a problem. As experienced developers know connection and impact fees can be substantial. Many cities will defer these costs with a lien. Since we are in a town of 9000, the city is reliant on these fees to break even each year. To bring my situation into perspective, we are looking at an amount of $297,000.

We asked the city if they would defer and they said we have to pay at permitting or before Certificate of Occupancy is issued. So at the beginning or end of construction. So much for helping us get it done.

This forum is full of people way smarter and more creative than I. Can anyone give me some suggestions on a creative way to get the city to not lower their costs but defer the costs while making it beneficial to them. I have considered asking them to set up a loan with interest we can pay over a certain period. I would think although the money is over a few years that the interest would be what’s gets them to ease up. Can anyone provide some advise on this for me?

Thanks everyone.

@Cassidy Burns I hope to learn out of state multifamily rental investing.

Thanks for all the advise. We have looked into financing through one of the suppliers. We were hoping to avoid dual loans, both with their own rates. Appreciate the help

Was hoping for some advise. We are trying to get a new development financed that is a 50 unit self storage facility using shipping containers. The issue I am running into is financing. The grading, fencing and security of the site will be about $143,000 and the containers will be about $240,000 delivered. After speaking with a few banks I was informed that the hesitation is the fact that the containers are not affixed to the land so its difficult for the bank to collateralize or leverage the development. I was told that essentially the land portion could go construction but may be best if done as a land loan. The containers a bank wont touch. Any creative suggestion on how to finance this? One option is to bank loan the construction and personal loan the containers for a year? Any advise?

Hi all, I am in the process of building a self storage facility using shipping containers. The total construction cost is $700k. We own the land which was appraised in 2018 for $100k. With an assumed down of 25% or $175,000 and maybe $75,000 deducted as collateral for land, that leaves around $100,000 I need to come up with for a commercial bank loan. I intend to use a investor to cover the down but trying to find the best loan option with future buyout. I have considered an equity waterfall but don’t have any intention of selling. I considered a cash flow equity waterfall with built in balloon payment after 2 years. My other thought is just a straight loan at a 12% interest for 2 year till I can refinance it all under SBA.

Can anyone give me ideas on ways to structure the deal? Google isn’t helping much.

Cheers!

@Mark Baldwin

I work as a building inspector in Northern Nevada. My advise...don’t walk away, run. Bowing can come from a number of reasons. Poorly designed, incorrect calculations on load of exterior bearing pressure. Masonry could be partially grouted which might not be strong enough to support the load of the home. Chances are there is no vapor barrier on the exterior side preventing moisture from penetration the block. I could keep going but you get the point.

In my rentals with my background I have one rule I follow. Don’t buy a house with foundation issues. Unless you have a lot of money to repair, it’s not worth it bro.

If you do decide to keep, I would suggest asking a Geotechnical Engineer to come look. The damage may not be the structure pushing down causing the bowing. It could be the soil bearing pressure pushing in is too strong.

Best of luck