All Forum Posts by: Ashley Pimsner

My bad, the rental calculations should be attributed to @Ali Boone.

@Greg M you should review the following link courtesy of @Brandon Turner to familiarize yourself with the numbers used by the banks.

http://www.biggerpockets.com/renewsblog/2013/01/19...

Since this is considered a commercial deal the bank will evaluate your 6 unit based on NOI/Cap rate so @Jay Myers is inaccurate when he states the "rental income has little to do with appraisal."

The great thing about commercial units is that you can force appreciation by increasing rents, lowering vacancy, or decreasing expenses

It seems like you have done a great job of stabilizing your property but it may need a bit more time to season (12 months) before the bank considers a cash out refi.

If you are paying gas, electric, etc. you could force even more appreciation by passing on these expenses to tenants, thus lowering your costs and increasing NOI.

Check out this link below...

http://www.multifamilyutility.com/rubs.html

Best of luck

@Darren H I have considered that the asking price is too high given ARV, but have 3 different Reators confirming local prices, aka listing price, so feel fairly confident that I am at least in the ballpark. Btw just lowered price today based on no shows at recent open house.

I agree with most of your post on seller financing but in this case I would prefer not too prolong the sale, even if it meant greater profit down the road by benefiting from buyer default.

This is dead $ that needs to be reallocated in order to properly leverage future returns.

Yes that was my first option, but I would still need to manage tenants out of state to cover new loan. This condo is my worse performing rental, so I really just want to be done. 

My mistake was not having more than one exit strategy.

Any other ideas for selling?

Hello BP nation, I need some advice about selling a free and clear condo that is currently listed for 140k which is about 20k below fmr because of some deferred maintenance. 

I had it rented for 3 years for 1200 mth, and believe I could now get $1400 mth, but I would like to sell and free up capital in order to buy additional multi units or possibly an apartment building.

A have tried the traditional approach of listing on MLS but feel I need to be more creative, and would like some ideas from the community.

I would not be opposed to seller financing as long as buyer took me out in 2-3 years.

Any ideas?

@Nate Leaders, the topic of fortune builders had been covered often in the forums, so please forgive me as I cut and paste a previous response of mine.

I agree with @J Scott that the experience you gain from your first flip is worth far more than the $19000-$33000 tuition to attend the Fortune Builders Mastery class offered by Than Merrill. However, I did pay the $200 to attend the 3 day seminar of Fortune Builders hosted by Cole Hatter, and can say without reservation that I completely ripped them off! This seminar is obviously set up to enroll students into the Mastery program but Cole Hatter was a true real estate expert and extremely motivational. The amount and depth of information provided was incredible and this seminar is definitely worth your time. If you take good notes then you can pretty much duplicate their systems or at least have a basic blueprint on how to start your business. The problem with most newbies is that they fail to take action and implement the knowledge that they have gained.

@Kevin Carraway for commercial deals inquire at local community banks or credit unions in your area, and start making calls to  VP of commercial lending about your "investment properties."

Typically they are looking for 65-70% ARV and a DCR, or debt coverage ratio of 1.25.

The key is that these portfolio/commercial lenders typically will only lend to entities like an LLC, so that is something you may want to consider.

Ask about seasoning, loan terms, if loan reports on your personal credit report, (it should not) if it is a recourse or non recourse loan, and if you will be required to sign personal guarantee, minimum net worth or income requirements.. this should get you started. Good luck.

are you sure...

http://www.llclawmonitor.com/2013/07/articles/seri...

@Kevin Carraway, I would suggest looking into establishing a serial LLC as the cost to set up and maintain multiple LLC's can become prohibitively expensive.

@Bud Dwyer at first glance it appears that your vacancy rate is much too low and probably should be raised to 15-20%. Studios and one bedrooms naturally have a much higher turnover rate which potentially leads to higher vacancy.

As I am unfamiliar with the area, may I suggest that you contact a local property manager or commercial broker to verify your assumed vacancy rate.