All Forum Posts by: Ashley Pimsner

@Patrick William's I agree with @Ned Carey to either use a local title company and/or attorney specializing in private and hard money lending.

A few things come to mind...you will want a promissory note collateralized against property, mortgage deed or deed of trust filed at court house which is signed and notarized, hazard insurance policy with you listed as "loss payee", and a personal guarantee from borrower.

I am curious about the types of properties you are investing in and where they are located.

I have a 3 flat not far from Berwyn located in South Lawndale/Little Village.

I will send you an colleague invite if you wish to speak further.

Best,

Ashley

@Ian Koteles I would first call a mortgage broker and ask for ballpark rates given the subject is a mixed use, non owner occupied property, as 5% rate used in your calculations too low in my opinion...probably looking closer to 5.75%+...not a big deal given loan amount.

Secondly, a lender will probably require a 25% down payment or $37,500 which is higher than your calculations.

Capex of 10% too high and 2% repairs too low.

Try 5% each and then increase vacancy by 2% to account for commercial space...its a wash but might be closer to reality.

After checking with a mortgage broker about rate and down payment then adjust your offer lower according to BP report to hit your metrics.

This can be a nice cash flowing deal as long as you buy it right.

Finally, try and make connections with an agent that specializes in commercial storefronts and see if they have anyone looking for a space such as yours and if rent could be higher.

Ask about longer lease terms 2-5 years with a bigger deposit or triple net NNN lease.

Remember you make $ when you buy.

@Cody Elliot,

"I've looked for Similar deals in the area, but inventory is extremely limited, and most Deals I've researched don't show the Sales price/cap rate without being a member or paying a fee."

Hate to be bearer of bad news but even tho you have some reserves, if you don't know how to calculate cap rate and other important metrics then you are in big trouble.

Not being able to provide sales price is just wasting our time and yours because you don't have necessary info to underwrite the deal. @Michael Ealy.

Excuses like I have to pay a fee to get these metrics reveals not only that you are unwillingly to invest in yourself, but also that you need to get on BP calculator and analyze a few more deals (50-100+) to gain proficiency.

We had a saying on the trading floor at the Chicago Mercantile Exchange, "how do you make a million dollars in the pits, you start out with 10 million."

Just my 2cts.

@Yannes Chiang

To clarify- if you click on FAQ in my former post sent to me from CHA, it clearly states in the HAP contract you signed does not allow for eviction of tenants for non payment.

@Federico Gutierrez 

Schadenfreude a bit petty.

Hello,

I just received this email from the CHA or Chicago Housing Authority and thought I would share.

@Yannes Chiang that headline was taken directly from the Huffington Post and retracted according to @Scott Steffeck.

I don't know the answer to whether or not we can evict tenants if we are not paid by HUD, but it makes me think that I should review my lease and include language that permits me to do so just in case it became necessary to survive.

Once again ample cash reserves are key.

@Scott Steffek,

My point is that this is uncharted territory and many landlords had not really considered non payment prior to government shut down.

I am fortunate in that I have planned for something out of the ordinary so I will not be affected, and all my vouchered tenants have nothing to fear from me in the way of eviction and business will be conducted as normal.

The newbies or those landlords that haven't planned for a black swan event may not be as fortunate.

Proper planning and ample cash reserves can make or break you in this business and this is a good wake up call for us all.

@Alberto Fernandez I have spoken with several people at the CHA last week and the company line is that they do not expect payments to be disrupted yet??

My take away is that it is a real possibility our HAP payments may not be deposited, but we won't know until very end of month because they are not going to announce it until last moment.

My question is if HAP payments not paid for Feb and let's say government reopens and payments resume in March, will we get missed Feb payments or just have to eat the loss?

Shout out to @Jered Sturm for creative ways to add value to apartment buildings and ethical landlording.