All Forum Posts by: Bob D.

So we got this verbally agreed to and then the sellers went MIA for two days and backed out!

On to the next one. The lender I was using was Host financial. 

The projected rent was $90k for Memorial day through Labor Day. We weren't projecting anything in the off season months. 

Thanks Matthew. Fingers crossed. 

I have a property under contract in Truro, MA that will be positioned as primarily a STR. Cost is $1mm and we are looking to put 25 - 35% down depending on terms. We believe the property will gross $90k/year in peak season (Main home, cottage, and pool for "compound" effect). Ten minute walk to beach. We will need to invest money on paint/paper/furniture/landscaping, I'm thinking $25k. This is my first deal.

I'm currently a partner at a WM firm and receive a K-1 starting 1/1 of this year so I have been told by all conventional lenders that I can't get a mortgage until 2024. I'm currently going through a private lender that has offered 5.5% with two points on a 30 year fixed. I will PG the debt. 

I can't help but think I can get better debt on this property. I have 740 FICO score and sufficient assets to post, good asset, and also a good down payment. 

Are there better lending options? 

Tenant is a private company but lender is free to examine their solvency for purposes of covering lease. Lease longer than ten probably unlikely. Happy to chat with you tomorrow.

Looking for a commercial lender for a deal in Fall River, MA. I have a sale leaseback deal with a single tenant that will sign a ten year lease. The numbers net out to an 11+ Cap Rate. Industrial property with several thousand square feet of vacant space that could be used for development. 

Any recommendations appreciated!

Paul, I’m happy to chat with you for fifteen minutes and possibly point you in the right direction. This is certainly a “loaded” question, you should take a high level overview of your general options here. I’m a financial planner with a small Boston based firm, and our roots are in Worcester. Bob

@Dick Stevens you’re probably right. We knew the heating system had issues and were planning to negotiate but the electric and plumbing problems were a surprise. Lesson learned. 

We considered negotiating it down, but it wasn't going to be worth it. 

I can't find anything in Plymouth that meets the 1% rule.

Thanks everyone! We had the inspection today and all the utilities (plumbing, heat, electric) are in need of a full replacement. I knew there were heat issues, but assumed the others were in better shape. We're likely out. 

I have an offer accepted on a three family in downtown Plymouth, MA. There are two three bed units and one two bed. We are currently negotiating P&S and have some fairly big issues to work through:

Three existing long term TAW that are all paying well below market. We initially thought we would "work with them" to keep them in there, but now we think the best policy would be to deliver vacant. At their current rent it is nearly flat ($250/mo) for COC return (after reserves). If we brought the property to market (for current condition) it would be 5 - 7% COC returns ($600 - $800/mo). If we upgraded the units we could get it closer to 10% COC but we would rather wait a few years to do that. Is there any reason to keep these tenants in place? It will be a big sticking point with seller because it will push out closing date but based on everything at BP it seems like a no brainer.

It's also a very old house with a few "classic" problems (asbestos, lead paint, etc.). 

Lastly, our lawyer is pushing us to use a bank loan so that we can purchase in an LLC, rather than buying it in our own name to get a 30 year fixed and transferring to LLC later. Has anyone ever had a bank call a loan on them for being in an LLC?