All Forum Posts by: Ali Hashemi

Was it a lawyer who quoted that to you? If so, then that's probably appropriate. If it wasn't, I would have a lawyer or commercial real estate agent draft it....I wouldn't recommend doing it yourself unless you have past experience.

On both of my commercial properties the sellers realtor drafted the purchase agreement and there wasn't a charge (unless you count the seller's realtor fees).

I only read some of the comments so perhaps someone mentioned it, but if your analyses aren’t cashflowong on paper, adjust your offer price until they do. Find a good property and make an offer that makes sense. 

As the saying goes make the #’s work for you, don’t work for the #’s. What that means is buy at the right price so that the property cash-flows. You’ll probably have to make several offers and pass on several properties until you land one. 

@Niyi Adewole nice terms! It sounds like you’re doing your due diligence! I think you can’t go wrong as long as you’re getting all the information. Never hurts to ask for lower price based on new information. Best of luck! 

Thinking out loud (I don’t know the legality) but I can’t imagine a new owner can be forced to abide by the previous owner’s lease terms. What if the previous owner allowed pets and the new owner doesn’t want to allow pets. New owner = new lease = new terms (if desired). 

Their lease is with the previous owner. Can’t you just have them sign a new lease at the higher rent (you should have a new lease & doors rekeyed regardless)? If they pay, great...if not then give them a month to get out before you start renovating. 

Not a lawyer

I’ve found small MF in Louisville is hard to cash-flow. Everything is simply over priced in my opinion because of how many investors and because it’s a hot sellers market. I don’t own any propeties in LVille I’m speaking only from crunching numbers. And it’s difficult to raise rent because there are so many other multi family housing available. These investments are a good place to house hack or park money so you don’t really lose any thing or make anything. 

The only thing I see in your analysis that causes me to question is your lending. If you have an investor friendly bank willing to accept as little as 10% down on a 25yr loan please introduce me. I don’t have extensive experience with bank lending but to me that seems too good to be tried. 

Best of luck and I think of managed correctly and kept at full occupancy you’ll do alright. In my opinion LVille is a tough market. 

I can relate to the commute! Welcome and best of luck! 

Welcome, and good luck by the way!

Nothing wrong with a 15 or 20 yr commercial loan that you can refinance after 6mo/1yr...I understand you'd prefer to finance more & put down less like the books recommend, however you have to understand from the banks perspective you're unproven. You could try negotiating buy offering to agree to higher interest rate, higher monthly or more down in exchange for a 30yr but then you're kind of defeating the purpose.

But if you're going the SFH route, why go for a commercial loan?

Probably easier just to go the conventional route.

personally (not a lawyer) I think it comes down to how much was put in writing. If you put in writing you’d forgive last month rent then they may have a case. If it was all verbal then you can say the arrangement was last month rent in exchange for security deposit. 

You’ll have to check local laws and determine acceptable uses for security deposits.