All Forum Posts by: Account Closed

Julien, PM me and I can give you a couple that might be good depending on the area and property type.

Jeremy, PM me and I can give you a lot of insight on both the USDA Program,HUD programs, and LIHTC. One of the first things you need to set is if you are going to operate in the restricted environment or if you are simply looking to market to seniors. That will have a lot to do with which programs will work best in your area and for your situation.

Kevin, it will cost you a lot less to talk with your atty. and set up a prorated lease where a portion if no all of your utilities can get billed back to your tenants similar to many commercial leases that do CAM charges. I do not know if your area has any rules against this for SFR but what we have done in the past from a marketing POV is to only bill 75% of the cost so that the tenant feels that they are getting a better deal than individual meters. As a side note, in many cases, putting in individual electric meters will involve not only the meters and wiring, but upgraded fuse boxes and possibly upgrading service to the property itself. Additionally, you may not be able to get multiple meters to a SFR without violating zoning and building codes.

Go green

Either way make sure you get rent loss coverage, Most times you will not loss the whole building but you may lose all the tenants and the mortgage is due each month.

Todd, I am going to change the direction a bit here. You initial post talked about evaluating real estate. Interest rate and terms are about the "deal" not the "real estate". Each investors has their own appetite for risk, talent, desired return, credit, etc... I would recommend that you focus on the NOI, ROI and Cap before debt to determine an apples to apples comparison. The debt equation will ultimately be the same for each if you go shopping for a loan.

Keep in mind that there is BAD real estate and Bad Deals. Bad deals can be fixed, bad real estate usually can not.

I assume what you Client is looking for is a lease that has little value, ie the spread between the lease payments and the note is close to zero. By assuming the note,with disclosure or not, the seller can stop dealing with a non performing asset and your buyer would be looking to the long term by acquiring an asset with little to no money.  Not a bad strategy but very difficult to do. To be able to assume the note will mean that he has a strong balance sheet since the lender would be concern with the weak lease. If the seller is financially weak, the lender may in effect trade up but again this is a very hard deal to do.

We have several such ventures, PM me and we can talk. Value is a function of rate and tenant quality.

Sorry to say, but if its on a web site, its already been shopped pretty well. Most brokers take their deals to their stable of investors first and then to the web site. Looking for a good deal, take a good broker to lunch.

One last one.  The property was built on the side of a hill going down from the road and behind a small retail center. About halfway down the hill, ground water would come out and make the sidewalk and stairs slippery. We thought we would be smart, so we made a rock channel and directed the occasional  water to a bayou at the bottom of the hill. One month later, the bayou was dead, turns out the ground water was contaminated with PERK (dry cleaning chemical) that had been leaking for decades from a dry cleaner in the retail center. The chemical would go straight down and then run along the bedrock till it would come out when it rained or the ground got saturated. - The property was torn down and is now on the Florida Super Site fund for clean up - when they get the money. Lots of fun

I believe it is for 2nd qrt 2016. small print in right corner.