All Forum Posts by: Alice Huang

If the ARV is so much great than current value, you might want to consider a bridge loan that will include capex, and then refinance with long term debt once it's fully stabilized.

Thank you Eitan. Yes that is the current plan!

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Originally posted by @Anthony King:

Haha..Thanks Anthony. We are still running numbers to make sure everything they told us, is accurate.

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Originally posted by @Anthony King:

@Alice Huang Are you sure about those numbers? You can get it for for $675k, put $20k into one unit, and all of a sudden it's worth $950k? And are you sure you can raise your rents from $860/unit to $1285/unit, a 35% increase without doing anything to those units? What class neighborhood is this? Maybe I'm wrong, but the seller's agent is either incompetent, or you need to double check your numbers.

Hello Anthony!

We're still checking the numbers, as it's a commercial building, our lenders told us they lend based on market rent. The rent hasn't changed since 2002, 2003, 2004, 2005, 2018, 2018 and 2019.

The neighbourhood is A class, and the building itself is B- at best right now. C is likely, as is.

There is no agent on the purchase.  My business partner found then lovely elderly couple, who are both in their 80's, via wholesale.

1 Vote

Originally posted by @Jill F.:

Get together your personal financial statement. The first commercial bank lender you meet with will probably have you fill out a personal financial statment form if you don't have one. Fill it out completely and use the info to write up a personal financial statement document. Make appointments with several lenders and take the personal financial statement and your purchase contract with you. They'll be able to tell you if they are willing to work with you and if they like the deal. Most of the time lenders here like a DSCR (debt service coverage ratio) of at least 1.25 for any deal they are willing to do. https://corporatefinanceinstit...

Hello Jill!

Thank you. From your experience, is it okay to use our own PFS? Or do we have to fill out theirs every time? We've had to fill out many with our resi lenders so far. Will prepare everything this week.

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Originally posted by @Ryan Stock:

Congrats on your deal! May I ask how you found it and negotiated the price?

Hello Ryan,

Yes my business partner has been wholesaling locally. I am not 100% sure how they came to the purchase price. Will check with him.

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Originally posted by @Adam Lacey:

Congrats @Alice Huang! Is the $20k the only reno that you'll be doing or is this a larger project to hit that market rent? With a deal that size I would find the local banks near the property and contact all of them. Be ready to pitch the property and why it's a good investment. If you have a partner with experience working on similar projects, that is a huge boost to your credibility with lenders.

Hello Adam,

1 unit out of 7 is being evicted, so we are renovating that unit first. Estimated rehab to be $20k for the first vacant unit.

My partner has been in touch with local banks. We should get a pitch deck ready. THANK YOU!!!

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Hello everyone,

We just got our first MF under contract. Not sure how to approach it (re: funding, loan apps and etc)

Here are the numbers:

Total units: 7 (4x 2 beds, 3x 1 bed)

Purchase price - $675,000

Renovations - $20K estimated on one unit but it can be deferred

Current as is ARV (estimated) - $950K

Current Rents - $6,050 (all month to month lease)

Projected Rents - $9,000 (market)

Taxes - $20,000

Current NOI - $33,310

Any pointers would be appreciated on how to proceed, what to look out for and etc

We close in 60 days.

Thank you all.

Best,

Alice

4 Votes

@Colby Fryar

Hello Colby, would love some insights as well. Will DM you. Appreciate the help!

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Hey everyone,

I'm a co-founder myself in a Texas based real estate company and recently been approached to head up the Sales and Marketing for a PropTech startup.

The PropTech designs and builds phenomenal net-zero homes. These homes are energy efficient, stylish, smart-tech and the best part, costs less than stick-built.

This product would make great ADUs, vacation rentals and master planned community. Our local governments are already signing contracts with us to build master planned communities.  I am very excited about the project and the impact we will make on the environment and industry.

BUT....It is also a startup. In other words, I will be building the Sales and Marketing department from scratch.

From working with attorneys on coming up with sales contracts for each client/territory, setting KPIs, establishing sales SOPs, hiring a sales team, training a sales team, conducting sales myself before sales team in place and all.....

Would love to hear your ideas on what is a fair setup in terms of base + commission + bonus + equity.

Location: Toronto, Canada

Thank you everyone for your insight what you think would be fair as I don't have a clue on where to begin.

Sincerely,

Alice

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All Forum Posts by: Alice Huang

Alice Huang has started 30 posts and replied 199 times.

Post: What area in New Hampshire is best for raising a family?

Post: First MF under contract! Commercial lending help please

Post: First MF under contract! Commercial lending help please

Post: First MF under contract! Commercial lending help please

Post: First MF under contract! Commercial lending help please

Post: First MF under contract! Commercial lending help please

Post: First MF under contract! Commercial lending help please

Post: First MF under contract! Commercial lending help please

Post: Multi Family Analytics and Ratios

Post: Real Estate related job offer...insights needed please!