All Forum Posts by: Benjamin Aaker

The commercial loan can combine all three as long as the bank is agreeable. You will only have one closing cost. Talk to a few other banks. 20% down commercial loans are common. The fixed rate for 5 years is also common. You will likely need to refinance at the end of the 5 year term.

I agree with @Account Closed, the deal should cash-flow as-is. What you do after is gravy. You will need to make sure your plans are in line with local ordinances. Talk to the city administrator or assistant about your plans. Next, make sure your contractor thinks it is feasible and find out the price to add a unit. Plumbing and electrical costs can sink your plan quickly. Finding a way to add a unit is a great way to make money in real estate. Great job for finding this one.

@Kerry Baird I absolutely agree. Rates will change and you will need to plan based on where the rates are. The LOC is a variable rate, so be prepared for it go go up.

@Zach Jones, that's true, you will need to have cash flow from your new property to pay back the LOC. I prefer the LOC because it sits dormant until you need the money quickly. Of course, if you are planning to do a 1031, now is the time, in light of the legislation that might get passed outlawing 1031s.

Some jurisdictions, such as mine, don't proactively look at sales. They do property valuations every few years and you take the hit then on property tax increases. 20 units may be small, but you can check with your local government about your intentions to purchase a property and ask if they will defer or reduce your taxes. Some areas and deals may be eligible for tax increment financing, which will lower the taxes, but these are usually on the larger projects. As you mentioned, you can make an argument with your local jurisdiction on why your taxes are not fair when compared to others in the area and should be decreased.

Hi Arthur and welcome to BP. Also, welcome to the medical field. You will be a high performer and will have large personal cash flow. You will be looking for properties that are nearly cash flow neutral, but build equity. I'm also a physician and started investing a few years back. I now syndicate and have a great network of high performers as part of my deals. Start talking to your classmates and coworkers now about real estate. They will likely be your partners in the future. When your physician career starts to wind down, you will hopefully have a great second profession to fall back on in real estate. Best of luck and DM me if you'd like to talk more. 

I'm in a mastermind group of 3 individuals and we have been meeting weekly on Zoom for 3 years. One of us is a syndicator of large multifamily. Another one does joint ventures in small/medium multifamily, another one is going solo on small multifamily. One is great at networking, another with tech, and another with deal evaluation. We each bring a few years of experience to teach the others. We are about 5 years in on our investing careers.

We are looking for someone that maybe doesn't have the experience in multifamily (yet) but either has experience in deal finding or is very motivated to learn. Our mastermind exists for each of us to teach each other and each has a strength. We aren't looking to double up on knowledge. If you think you fit the bill and have time every Wednesday from 9-10AM CST, send me a DM. There is no fee. This is a long-term group and we have become friends over the years. We would love to grow.

I'm in a mastermind group of 3 individuals and we have been meeting weekly on Zoom for 3 years. One of us is a syndicator of large multifamily. Another one does joint ventures in small/medium multifamily, another one is going solo on small multifamily. One is great at networking, another with tech, and another with deal evaluation. We each bring a few years of experience to teach the others. We are looking for someone that maybe doesn't have the experience in multifamily (yet) but either has experience in deal finding or is very motivated to learn. Our mastermind exists for each of us to teach each other and each has a strength. We aren't looking to double up on knowledge. If you think you fit the bill and have time every Wednesday from 9-10AM CST, send me a DM. This is a long-term group and we have become friends over the years. We would love to grow.

Depends on quality and location. A run-down property in a bad part of town will pencil in a higher cash on cash on paper. It doesn't factor in all the work you need to do to manage the place. It'll be a lot more in this type of property. 

If your triplex property is cash-flowing, go with the HELOC. A 1031 will help defer taxes, but you will lose the income source on your triplex