All Forum Posts by: Todd C.

Hi,

Looking to file a suit against someone that sold me a property. Their T-12 and T-24 included a falsified amount of expenses which reduces our NOI by >$10k. We have proof of this and want to pursue recuperation of funds (ie. we would have paid $100k less for the property if these facts were known and not hidden).

Looking for a partner in this suit. As such will only work with a lawyer/team that is willing to take this on contingency. Please reach out and I am happy to explain...case should be pretty cut and dry.

I’m way more concerned with the other tenant. They make up 80% of the total rent roll. Outside of that I fully agree with you.

Hey all—I'm a residential investor making the move to commercial after having a good experience with a mixed use property. I'm looking at a 3 unit industrial building with 2 tenants up for renewal within 2 years. As such i have a LOI in at a nice cap rate.

Obviously this deal is only as good if the tenants extend, so I'm curious what I can do during the due diligence period to either a) get them to extend and b) reduce my risk of vacancy as much as possible. Both tenants have 5-yr extensions and one has very favorable rates (nearly 50% below market NNN rates and is on gross terms).

Secondly, is there anything to do to help massage the very cheap psf tenant closer to market and/or to get them to NN or NNN despite them having an extension option (don't have leases yet so unclear what terms are in there)?Lastly, have you found banks willing to lend with such short terms remaining? Any help would be greatly appreciated!

Thanks for the reply! One question I have with regards to NOI (for value purposes) is should I be incorporating a) projected maintenance costs or b) projected property management fees into this?

My guess is no, but want to make sure. 

Hey all!

Found an off-market deal in a market I'm beginning to dig into. My realtor and I checked out the building yesterday and we were extremely impressed with 1) lack of tenant turnover and 2) the quality of the building itself. The only ? I have with this is that 6 of the 8 units are referred to as efficiency units, which are effectively studios with shared bathrooms. Now the cash flow here speaks for itself, and the fact that tenant turnover has been pretty low despite efficiencies attracting transient tenants is a big positive. 

That being said, and as the landlord is motivated, I'm trying to figure out what the best way to get the true "value" of the building. Is comps the best way to look at this still or is there another method that I should be taking into account here?

Thanks!

 Thanks for the reply! I thought they were referring to Hardmoney lending, but that is not the case. I spoke to a mortgage broker who was familiar with the loans but wasn't really able to explain them to me in any great detail. These loans are through a financial institution that much I do know.

Hey all--

Looking to do my first BRRR deal, but 2 agents I've spoken with have suggested I look into leveraging my capital from the onset. They've recommended I do an "as is" loan for the purchase / rehab. Once the units are stabilized, refinance into a conventional loan. I haven't been able to find much detail around the terms of "as is" loans, so I wanted to see if anyone here could shed some light. My guess is that the interest rate is higher and they typically come with more points associated with the loan origination. Anyone ever structure a deal like this before? Any insight would be greatly appreciated!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Worcester.

Purchase price: $240,000
Cash invested: $100,000

Appraised value: $425,000

Purchased a 4-unit building in Worcester, MA. All 1-BR/1-BA units. Gut renovation on each one through a construction loan.

Rehab completed in late August (contractor did not pull certain permits, so the site got shut down for a few weeks).

Fully rented for October 1

Cash flow after all expenses: ~$1,000/month.

Well I'm connecting Friend's A & B, both of which I have a personal relationship with. Friend B I grew up, and Friend A is a good friend of mine. Friend B views this as the "cost of education" so he and I can replicate this time and time again, either with Friend A or without. 

Hey all--

Doing a lot of things in real estate right now (hopefully) and this is one of the opportunities I'm most excited about. A friend of mine (let's call him A) has done a handful of 3-unit building purchases over the last 5 years. He cash flows roughly $1,000-$1,500/building and will typically put some money into properties to get some 'sweat equity' out of them. 

I've spoken to another friend of mine (lets call him B), who has the liquid funds to provide the cash to purchase a similar type of property, working with both myself and friend A. Friend A would provide the knowledge, the connections and be the 'guy on the ground.' Friend B would provide the capital. I would be the person on the mortgage. Friend A would get 15%, Friend B and I would each get 42.5% of the property. I would also be responsible for either a) providing Friend B with a monthly sum of money until I reach about ~20% of the down payment or b) provide Friend B with my portion of the cash flow until I reach ~20% of the down payment.

All in all, this seems like a home-run to me, however given I've never done this before I am a little anxious about being the only person on the mortgage. My quick math suggests that I could earn upwards of 60% ROIC every year. I'd be curious to get your opinion on this situation. Thank you!