All Forum Posts by: Andrew Beauchemin

Hi @David Mitro, I'd be interested.  Following this post.

Hi @Charanjit Singh, could you tell us more about your investing goals?  Are you looking for strictly cash flow?  More information may help us give you a better answer

@Matthew Rembish, I would approach it as a long-term approach, rather than a "sell to me now" approach.  You'll find that you won't ever sell anyone on the first contact, so be prepared to keep in touch every few months with your list of owners, and you may get a bite somewhere down the road.  

It's great to list some points as to why selling direct may be beneficial, but CRE owners will be a lot more numbers-savvy than wholesale a SFH from a little old lady. Most have teams of brokers and professionals at their disposal, and are more than willing to pay commissions to brokers to get the top market rates.

That being said, I would try to add some market research behind your expressed advantages; i.e. Instead of "If you sell now, you will have cash to move on to bigger investments," say something like "Over the last 10 years in Toms River, appreciation growth rates of mixed-use assets like yours have been showing signs of a decline. Based on my research, we may be at the top of the market for this type of asset and it is a great time to take profits (and have the backup ready to share).

Hope this helps,

Hi @Haney Mallemat, 

I have to respectfully disagree with Michael's PM estimate. 10% could be used for SFH or duplexes, but for larger multifamily in Philly/South Jersey PATCO line I will usually underwrite 3-5% for Management/Payroll.

R&M: 1-2%

CapEx will vary the most, it's tough to give a ballpark estimate without knowing more about each individual property.. It's better in my opinion to have price estimates on individual upgrades, i.e. the cost of a roof, cost to renovate a bathroom, cost for a new boiler, etc.

Obviously these are just back-of-napkin estimates, so I'm open to hearing other opinions as well.  (Percentages are based on stabilized annual Income, after accounting for vacancy)

Hi @Brad Lowery, Is the loan size $100MM+ or the sale price? I have some that we've done $50MM+ loans with this year with in Pennsylvania, I'm not sure if they reach out to Houston but i'm happy to check tomorrow.  Would you mind emailing me the OM if you have it?  

Hi @Account Closed, I agree with Ray here. There are some good financing options that come along with first time home buyers, (i.e. FHA), that would enable you to put as low as 3.5% down on a multi-family property, as long as you were living in one of the units. I would advise against the condo, and do your best to cut your current expenses, whether that's finding a new apartment, or getting some roommates.

Hi @Account Closed, I would recommend you reach out to some commercial mortgage brokers in your area that have experience with the type of properties you're looking at.  They should only charge a fee after closing (usually around 1% of the loan), and should be able to save you more money than they cost.  I wouldn't do business with any broker that charges you up front.

Full disclosure, i'm a loan originator and am obviously bias!

@Jonathan DiBenedetto, my CEO spent a number of years as an executive at Chase.  We're based on the east coast, but I'm sure he knows the right person to get in touch with.  Let me put you two in contact, send me an email with your info.

@Modesta Lopez, I agree with Kristina response.  To add on, if you're willing to sacrifice a bit of equity, you can  look into partnering with other people.  Since you found the deal, you're in control of the cuts you're willing to offer.  There are companies that do equity syndication professionally, so if all else fails you can bring this deal to one of them.  Just be careful they don't take you for a ride.

The hardest part is finding the deal, if you have a good deal the money will come.  Worst case, you can get it under contract and attempt to wholesale it.

Hi @Stephanie C., is there any way to get creative and add income producing space to your existing footprint?  For example, converting unused garage space or back of house space into rentable storage for your tenants