All Forum Posts by: Ash Patel

All great posts and super advice.  I'm excited for you because these are the types of deals I do. Big risk but great upside potential with a lot of hard work.  Keep us posted and good luck.  

Joel Owens when these loans originated they were at 30% LTV. I have paid them down over the last 1-3 years and have improved the properties. The refi is just the outstanding balances. Today's LTV is probably around $50%. Full personal guarantees on every property. All of these properties are fully stabilized. My credit is fine, income is in the top tax bracket and we (wife and I) are liquid enough for banks to like us. Am I doing it all wrong? Should I be looking at national lenders or portfolio refi's? Open to any help at all.

Joel Owens when these loans originated they were at 30% LTV. I have paid them down over the last 1-3 years and have improved the properties. The refi is just the outstanding balances. Today's LTV is probably around $50%. Full personal guarantees on every property. My credit is fine, income is in the top tax bracket and we (wife and I) are liquid enough for banks to like us. Am I doing it all wrong? Should I be looking at national lenders or portfolio refi's? Open to any help at all.

Most of the commercial properties that I buy are ones that make lenders cringe.  Vacant for years, need rehab etc.  I finally have all of my properties stabilized and cash flowing nicely.  My local banks rarely do anything beyond 5 year notes (15yr AMT) on commercial property.  I was able to get my bank to commit to 10 years at 5% today (15yr AMT) because they were matching a competitor.  This came without any struggle so I am wondering if this is really the great deal that I think it is?

Properties are mixed use, retail, medical, office.  No national tenants, just local businesses. 

Thanks! Ash

@Carlos Enriquez - Like many others have said, this is the cost of doing business.  You are  making a pretty big deal over something pretty minor.  I can't imagine what you would do if he missed something major like a foundation! 

Consider yourself lucky that this is the only issue this house has. It always pays to be at the inspection since you learn a lot. I bought a FSBO where the owner went out of his way to cover things up, then the inspectors missed several key items. Its not worth the headache to pursue legally. My inspector only gave half of the $400 back to me. I probably should have asked for more. There went my first year profits but things were corrected and the cash is flowing. Seriously, move on to the next deal!

probably a real dumb question but can you restack the shingles with a similar plastic in between?  I know it would be very time consuming and tedious but......

Thanks for the numerous lessons learned from your story.  Hope you have a quick recovery!!!

My first property was a run down 150 year old mixed use building.  The tenants are college kids and let's just say I remember being one of them.  The first thing I did was have an eclectrician install hard wired and inline smokes in all of the common areas.  I went ahead and installed a few battery powered smoke/co detectors inside the apartments as well.  They are so easy to install, all you need is a screw driver.  

I love @Prashant P.'s mention of recording the test.  I'm actually going to email myself the results so they are time stamped.  After each tragedy the codes are strengthened and there is no system for the city to alert all landlords.   It's on us to be proactive and find out.  

Good job everyone for not escalating the ethics argument.

@Ashley LeBoeuf Your seller was probably jaded on a previous deal. I agree, if a large EMD is not going to benefit you at all, stick with the minimum. I like @Darrell Lee's advice.  I have also sent the sellers Realtor a personal balance sheet, asset list or bank screen shot as further evidence that I am a qualified and serious buyer.  

Good question and great responses!

thanks @Dave Foster  that was quite helpful.   

I will go against the grain here on earnest money.  My largest earnest money check was for $50k.  It was on a bank owned commercial property that sat vacant for five years.  Asking price was $500k and I offered $400k.  The large earnest check was to get their attention and show that my offer was legit.  It worked, kind of.  The bank came back and said I had to close by the end of the year (three weeks away) or they get to keep my earnest money.  I checked with my bank and title company and they were on board so I rolled the dice and got the property.  

I typically write $10-20k earnest money checks to get the sellers attention.  I have contingencies and the realtors hold the funds.  I understand there is some risk but my opinion is that it is calculated and worth it.  The large earnest money checks take the sting out of the low ball offers.