All Forum Posts by: Alix Cassagnol

@Chris Seveney thanks for your advice that's what I was considering and researching early lease terminations online.

I ha ve a retail tenant that wants to leave 4 months into her 3 yr lease. I agreed to terminate her lease and return her prorated amount of her security deposit. Considering she has not paid for 7 weeks. Can I draw up an agreement to have her sign or do you think I shld have a lawyer draw up an agreement?

I am in the process of buying a 25 unit motel. The current owners have been operating for about 40 yrs and have bad record keeping. They say the expenses are 10k and the income is 25k. It is in ideal location for a multifamily conversion and is zoned for multifamily. Just curious if there are any suggestions on keeping it as a motel or multifamily. The price seems pretty good at 900k. Looking for some advice.

@Earl Gaines so the hard money lender refused to take second position. However you may be able to find a private lender willing to take a second position.

Hi Earl, congratulations on the seller financing, a while back I had a similar setup. The only thing I can really share based on my experience is that to verify if the hard money lenders and private lender are willing to take a second and third position on the title. All depends on the lenders and how much they are lending and there risk level. So I would just verify with them before you start spending valuable time and money doing your due diligence. Best of luck!!

Hey Vincent, it seems based on the numbers you provided that the asking price of 490k is appropriate, considering you DNT have to do any work to it and the holding cost is minimal. Depending on the local market you may have to hold it for a extended time. Last after considering those factors you need to add your spread if you are going to wholesale it. You did not include your acquisition price. 

I am I. The process of getting an appraisal done Saturday however the gas meter will take 2 months to be installed. Should I wait or do the appraisal?

The key is to finding the after repair value and keeping your total expenses to 70 %. After stabilizing the property with tenants you then go to the bank and refinance. At that point depending on the lender you can pull out upward of 60%to 80% of the value.

Example: you 50k duplex after putting 20k into it is worth 100k you can refinance after stabilizing it and get your 70k back to reinvest..

So if you buy with a conventional loan you are leveraging your out of pocket and the arv ( after repair value) still has to be 60%to 70% after all repairs.

The 175k and  195k properties depends on the amount of money you are spending to repair and the comparable prices in the area.

Hi,

Great attitude to have, sometimes you have to use that attitude and energy to keep looking for new properties and let the seller comeback to you. 

I figure since you are on here you did your calculations and made your best offer based on facts and not just a low ball offer out of thin air. So if that is your best offer just have patience.

Recently I was in negotiations from November 2019, then covid happened so I let the buyer come back to me by May he went down 100k, and just recently another 25k, now we should be closing by October. Another mixed use property I looked at in January was asking 1.1million, needs work and is vacant. I offered 900k. 

After a couple of months, the realtor called me and said the seller is motivated, make my best offer, so I knew the propety is worth 900k but I said 800k and waited. Now that is my starting point, after my inspection and due diligence we could be even lower.

So sometimes it's good to be persistent but you have to be strategic make an offer be patient and continue looking.

When they come back to you, you are in control and basically they need you, so you can possibly get even better terms.

Last, you can't be afraid to lose a deal. You can't force a deal to work. The numbers don't lie

Stay positive and keep making offers.

Alix

Need advice. I am in the process of a master lease option, negotiating still. It is a 6800 mixed use building in Nassau County, New York taxes 55k.

6000 sq ft of retail that can be subdivided into 4 units with a 2 bedroom apartment above. The potential is $2400 for the apartment and $9000 for the retail. No separate utilities. Building is vacant and needs 50k of work. Seller originally wanted 1.1 million. He has agreed so far to a 3 yr lease with 3 option prices 900k for now or 1million by next year or 1.1 in two years and 1.2 in three years. I would be responsible for taxes and utilities that comes to 6500 a month. He has a 400k mortgage so I would offer 2k a month to him. That is a total of 8500 a month. He is willing to give me 3 to 4 months to fix and get tenants. I was thinking of negotiating the cost to repair to be deducted from the option price.

That leaves $2900 take 500 for utilities and repairs $2400 left . Does this deal make sense I am open to suggestions.