All Forum Posts by: Ariel Cohen

@Frank N. thanks for the feedback. Can you share the name of the remote system you use?

@Wayne Brooks Thanks for the quick response. 

Is subject to an FHA loan different than subject to a conventional loan. Are the risks the same with FHA or are there additional considerations to be aware of?

The current owner is not an owner occupant either so that part won't change. Does the FHA do any sort of inspections to verify occupant status?

As far as the refi amount, I am fairly confident that we will be able to redo at that level of debt. We are in the process of refinancing another property nearby that is smaller propert with lower rents and the refi will be $875k. The property is in the bushwick section of Brooklyn were similar properties are valued by lenders as a 5 cap. My refi assumptions are based on a 6 cap valuation and 75% LTV.

@Ru Monsell Do you have any updates on your FHA subject to deal? Were you able to get any feedback?

Today I went to look at a 3 family property in Brooklyn. The seller was previously renting the property as an SRO and is now in the process of removing the last 2 of 17 tenants.

The property has 3 3BR/2BA units and after some mostly cosmetic renovations the property will be able to rent each unit for $2,800/month.

The seller has a $732k FHA loan on the property that was originated in March 2015 and I am looking to purchase the property for $950k subject to the existing FHA loan.

The business plan is to renovate the units, get in tenants, and then refinance the property to pull out the equity invested and then hold for cash flow.

Does anyone have experience buying properties subject to an FHA loan? 

I am working on trying to put together a deal on a multi family building and wanted to get some feedback on how much extra I can pay for a property in exchange for receiving seller financing. The property is a 30 unit building in Brooklyn that is rent stabilized and therefore the NOI of the property is significantly less than what the potential for the building would be. The average rent in the building is $1,130 per unit based on a unit mix of 1-2 BR units. The average market rent is easily double that with minor upgrades needed in some of the apartments. Expenses on the building are about $100k per year leaving an NOI of approx $300k with the in place leases. As a cash deal the price that the seller wants makes no sense at all. The seller is looking for a 3.5 cap or a sales price of $8.5mm. I would be happy paying a 5 cap for the building with all the potential upside. I introduced the concept of the seller financing the sale and explained all the benefits to the seller. The seller seemed to be very interested and was going to do some research and get back to me. Since we are pretty far apart on the price on a cash basis, I want to get your thoughts on how much of a premium you would be willing to pay and can justify by getting very good seller financing terms.

Sorry for the double post. New app doesn't let scroll when I type. And going to school and working at the same time is a given for most people. Not sure why you are writing it off as impossible. Sometimes the easy way out is the hard way in the long run.

Why would your want to start off your your professional career with a bankruptcy over your head? You are only 22 which means you have so much of your career left and starting with a BK seems like a really bad place to start. Like others have said, $20k may seem like a ton of money when you don't have it, but it really not a ton of money, and even if it takes you 3 years to pay if off, it will be an accomplishment rather than having the mental baggage of a BK.

@David Dachtera My point was the HE had no experience or education in REI yet was able to do deal because he had the drive to do it.

@Rick H. I agree with Rick that buying a course is not going to be the main factor that gets you involved in REI. I have been involved in REI as an employee for 10 years and I have been following BP and reading many REI books. In the last 10 years I haven't done much :-(

I partnered up with a friend who is a real go-getter and decided he wanted to get into RE. He partnered with me because of my experience in RE and together we just closed on out first purchase last week which was a $1mm+ multi-family deal. For my partner this was his fifth deal this year, and that is all because he decided he wanted to do it and it driven and motivated to get what he wants.

Bottom line is, where it not for him, I would still be reading books :-) 

I closed on a 5 family brownstone in Brooklyn last week. The building was occupied by the owner who lived in one of the units and had the thermostat that controlled the heat for the entire building in her unit.

The heat for the building is produced by a single gas fired steam boiler which was installed last year when the old oil boiler was replaced.

What is the best option for controlling the heat for the property? All of the units will be occupied by tenants.