All Forum Posts by: Alex Tobias

@Robbie Reutzel

I appreciate your advice, and I think your process makes a lot of sense. Do you mainly use direct mail/cold calling? So if I understand you correctly, you usually know about what you want to pay prior to seeing detailed financial info right? And then during DD you make sure nothing outrageous is going on with the numbers? I figure you would want to renegotiate if there was an issue like lots of bad debt or high expenses?

For commercial residential bank loans

To me, I can make a reasonable approximation of value by looking at basic info like the market the property is in, the stated rents or market rents, occupancy and general info like that which is usually disclosed upfront. Do you make written offers based on that surface info or do you give the seller or their agent an estimate of the offer you are considering until more info is given? We know that upfront expenses shown are usually deceiving in order to invoke a higher price. If you do make offers based on that limited info, do you adjust your offer if, after looking at more detailed info like p&l and tax returns, the numbers are worse than anticipated?

I'm curios how much info you want to see before making an offer. And If you don't have enough info on the property listing, do you contact the agent for more info prior to an offer? I hope that isn't confusing and thanks!

Thanks everyone. I agree for the most part. I'm currently mainly focusing on mobile home parks, but this has been very helpful. 

What info do you ask from a selling broker. I'm mainly interested in the rent roll. Is there something else you ask for? A P&L would be great, but I'm not sure if that is generally considered appropriate to ask for. Thanks!

Thanks everyone. 

@Dan Wallace That's what I figured. From what I understand when a bank underwrites DSCR they will look at the individual property as well as the overall DSCR of the portfolio so I figured personal debt would matter, especially with a small, low-yielding portfolio.

Any site or approach at getting market info is helpful. Vacancy rate specifically seems to vary significantly on different sites, and seems to not represent my experience in certain markets that I thought I understand. Thank you for any help.

I'm considering buying a primary residence with an FHA loan which means I'd have ~96% LTV. Would that high LTV negatively affect a commercial property loan--meaning would I be required to have have a higher down payment for the commercial building to compensate for the highly leveraged SFH? I know there has to be a certain LTV ratio among a portfolio but I'm not sure if primary residence is relevant. Thanks for any help.