All Forum Posts by: Tiger M.

@Account Closed Its usually better to seek a private lender that will be asset based. Try your local meet-ups. Seems they are in swarms in the CA market.

@Terry Flynn

Welcome to BP. @Phillip Dwyer has a great local BP meetup that you should try and make it to meet the Vegas gang.

@Ben Leybovich @Serge S.   I noticed a mention of being mainly military town. May want to keep an eye on the 40,000 military reduction being discussed in DC in case your base is eroded further. 

Contact @Phillip Dwyer. He is here on BP and hosts the local BP meetup. He is a very profession manager that dots his I's and is on top of his game.

@Jeremy Pace All your advice is spot on and I agree with you. Your obviously versed with the system and are doing a great job.  I am happy to hear there are some folks that are having a positive experience. 

Its not a lease issue for entry, it's a Nevada Revised Statutes issue. They require an official posting of a 24 hour entry notice, so the handy man that has a scheduled appointment and a no show from the tenant then does have to leave and cannot enter unless its on fire or waters coming out from under the door. We are unable to call and leave a message to start entry notice as you stated in NV. Must be nice being able to in PA.

The rent abatement was not paid, ever, even after repair. It was past the 30 days. The inspections were only completed with a representative present. The handyman did in fact miss the switch plate cover and he should have replaced it. The point is the how the inspector handled it. He was promised the repair would be completed asap but was refused any concession.  

This is another non lease issue. The basis for a constructive eviction in NV over property condition is subject to an opinion of a person in a black robe on a bench. Some Judges don't care what the law states or whats in the lease or how many time stamped photos you present,  they do what they want in Justice court. Its their court. The chances are this would have been deemed, ordinary wear and tear and denied a eviction. It is a sad fact of the NV justice system. We have some really great judges that follow the law and lease and some that just won't. I could share war stories about legitimate move out charges waived by Judges that would fill a book, but I'll spare you.

You mentioned,"HCV tenants are hard to deal with, and HUD inspectors and counselors are hard to deal with". Why go through the trouble if you don't have to? Life too short.

Our clients make the ultimately make decision on their properties anyway. I just read the post to Donovan above. The difference may simply be that we don't handle C & D properties any more. Thank God. Its nice not having mace at the reception desk. Still haven't found a way to screen for bad personality either.

Peace

@Joel Owens

Spoke with the owner this morning. The current loan may be assumable, its with a credit union and the owners said they may consider carrying a portion as well.

There isn't an option to purchase, first right of refusal etc. They just expressed interest at a time down the road, you know the dream. I personally think its a great buy due to the aggressive price offered by the sellers. They are in their late 70's and health issues are a bigger concern than cash flows. They are ready to cash out and retire.

This building has the lowest rent too, the 4035 building they occupy escalates to around $2.15 so the opportunity to extend the term and absorb the reduced rent would appear to enhance their position in the combined facility cost.

You didn't comment whether the rate reduction/extension was better for the sale. Thoughts?

Do you ever sleep? Its what 2 AM EST. Im going to start calling you Gordon Gecko since money never sleeps.

@Joel Owens

Thanks for the comment. I haven't been doing a lot of commercial loans in the past 36 months so, oh wise one, would it assist the sale to give the tenant the break on the escalation now and extend the lease term 2 years? I hate to drop the 2015 14% increase but the owners are old and need to get the cash out of the property. I believe the tenant would extend 2 years if I reduced their escalation to a 3% CPI. The rub is thats a reduction of 33K this 2015 fiscal year and another 74K over the remaining term. The 2016 escalation puts it at an 11.5 CAP.

@Ind Kon

There is one magic in real estate and thats always the price.

Welcome James!

Thanks for your service. You came to the right place for RE info. Try and attend some local BP meetups and check out the podcasts.