All Forum Posts by: Tom Kaz

@Toan Le

Cozy has been working out great for me, takes a little longer to get the money transferred but I’m ok with that!

Evening BP,

Im currently in the process of purchasing my second multi-family 4-plex and am pretty stoked about the deal I secured. The building itself came up on the market about 5 days ago, I of course had my agent set up a showing immediately. Within 12 hrs of it being active, i went to see the building which was on the market for a steal in my opinion @ 315k, i offered 320k and they accepted that night (i was told a couple days later they received a cash offer well over my offer). The building is definitely a value add and needs some rehabbing but i plan on doing everything myself once vacancies are had. The current owners have owned the building since 1995 and were in the process of retiring/downsizing, 3/4 units are filled with the owners unit being vacant. I plan on doing a quick rehab and jack up the rent prices (they are all well below the market standard).

My lender (second loan with this same lender) said i have the loan 99% secured so its just a matter of time before the appraisal gets ordered and we can get on with the closing (exact same building across the street sold for (399k & 425k)! The only thing that could possibly be an issue is the vacancy in 1 of the units, the building definitely pays for itself when its fully occupied, and will cash flow a ton once i get it under my management and cleaned up. Im just worried it will cause a speed bump if leases are required and they complain about it being able to cover the mortgage. Again, my first 4-plex could easily cover the expenses until i can get it filled with no out of pocket costs. Has anyone had an experience like this? could I temporarily say the unit already has a tenant lined up? 

If all goes as planned i think i will be making out with another great multi unit building in just under a year! It really does just take 1 purchase to get you going. Mind you it took about 7 months for the right deal to pop up.

@Wesley W. Great addition to the lease going forward.

@James Wise yessir, just waiting for the call from the sheriff..

As the title states, I’m currently evicting a tenant (we file we sheriff tmrw). The toilet is broken, due to their neglect and with no sense of notifying me. With them not paying rent the last 3 months, should I rush this repair to avoid conflict? I just want these folks GONE!

Water to the toilet is completely turned off now, mind you the tenant hasn’t responded in months and poof like magic there back!

Thanks for the heads up, im pending my lenders response. I have a good relationship with this bank but if they cant help me out ill be forced to go elsewhere. 

@Charles Kao

Thanks for the heads up, I have requested that my lender look into a conventional commercial loan, but feel as if she will “shoot it down” if she hasn’t brought it up before.

Can anyone recommend a lender who can help me out with a conventional commercial loan?

Thank you in advance!

@Charles Kao

SBA/CDC denied my underwriting for the 504 because the loan amount was too small and they didn't like where my down payment was coming from (HELOC).

My lender said to go the 7(a) loan route because they can do them in house, BUT the rates are a bit higher prime + 2.2.5%.

Looks like I may need to go this route..

@Charles Kao

Thanks for the heads up, as of now the underwriting process has started for the 504 loan. No idea how long it will take , but my lender stated that they have secured these loans before and they are preferred lenders for the 7 series loan, but it’s a much higher rate.

How did you go about securing a conventional loan with 20% down, on a self storage facility?

I do have the 20% down to secure the loan, what type of financing did you secure yours with when you dumped the 504 route?

Thanks,

Another question I've been pondering is what do people file their rental income under, I've seen a lot of posts about people filing them under schedule E (no service/on-site manger). 

With that in mind, is it better to place the facility under an S-Corp or LLC?

Thanks in advance!