All Forum Posts by: Charles Carillo

@Andre M.

We own mixed-use and I think it depends on the location of the property and the type of commercial unit this property has. Is it an office or a liquor store/bar? Why this matters? If it is a loud/busy commercial unit with people hanging outside, are you going to be able to rent the apartments then? What are the parking requirements? If it is an off-street property, are you going to be able to rent this if the unit is for retail? What is the zoning and permitting previously for this unit? One property we own has a small office as the commercial unit and that works out great because it is a quiet tenant without the large
requirement for parking.

@Katrina Gillrup

Read this: https://www.daveramsey.com/ask...

@Kenny M.

We own multiple 3-family properties in the northeast and have changed boilers and hot air furnaces many of times (just did one last week). First off, how many boilers and furnaces do you have for a 3 family property? If each unit has their own; why are you paying for them (other than the previous owner did that)? What fuel are they using? We switched every unit to natural gas after we purchased them; I would make this a goal if you have oil currently. Next, the issue is not really the temp in the apartments but the 40 year old inefficient furnaces/boilers.

What my goals would be. 1. Switch units to natural gas and if you have oil currently, try and use up as much as possible now because it is expensive to correctly remove heating oil from a property if you switch to NG; do small oil fill ups until it is summer (also diesel fuel is the same as heating oil). 2. Speak to heating contractors and start getting pricing on changing all furnaces and boilers over the summer. If there are not separate units for each unit, maybe do this. Not that difficult, especially if you already have 2 units. 3. Start transitioning your tenants to paying their own NG heating. Maybe tell them that they are covering heat starting September 2020. Maybe deduct some money from their rent for doing this; $50-$100 a unit per month?

@Drew Rehman

I do not have an exact answer to your question but there are so many unknowns and each time I contact one of our lenders I get a different story which sometimes differs from what is on their website. We hopefully will not need forbearance (tenants are still paying and we have reserves) but as I understand, it is a very slippery slope. I was told by the same bank contradicting statements about making partial payments and when you need to catch up etc. I do not trust any of it. Someone at a bank told me to pay the escrow payment if you find yourself in trouble and a couple days later they said a partial payment will not be applied towards escrow, principle or interest. So what is it? My suggestion is to be very careful with forbearance.

@Lazaro Dinh

We have one commercial lender that has not returned our repeated calls. Our tenants are mostly still paying so there is not a pressing issue but it is very unprofessional and risky on their end. If someone owed me money and they were calling me; I would speak to them during COVID or not. Have you tried speaking to other people at your lender? I have gotten completely different stories from the same lender, 1 week calls apart.

Interesting read: https://therealdeal.com/2020/0...

@Pedro Tapia

You can speak to an accountant that specializes in international investors and they can assist you with obtaining a ITIN and a entity to invest through (LLC most likely). They will handle getting your EIN for the LLC as well. Next you will open a bank account. At this point you are ready to invest. There are lenders out there that will lend to foreign investors with usually 30% down. Find a real estate agent that focuses on the property types you like in your target area. Use them for referral for property management, contractors etc.

@Adrian Lopez

Yes, you can start with wholesaling but you should be prepared to invest money in any path you take; especially wholesaling. Wholesaling is a very marketing intensive business unless you have time to drive neighborhoods looking for homes in disrepair for many hours per week.

@Tony George

Maybe an attorney from Texas will comment on the legal questions but I would suggest finding your team (including contractors) from referrals...referrals from other investors just like you. This will hopefully minimize any future issues you might have. Also, never get ahead of a contractor in regards to payment; you can purchase the materials yourself if they are weary. Lastly, I would start them off with a smaller project (a bathroom for example) before you give them a $50k rehab.

@Nathan Martinez

Are you an agent and you are selling this property or do you want to find a partner for the property? Do you have any experience underwriting commercial multifamily? If not, find someone that can help you review the property.

@Lauren Ashe

Yes, it is possible. I would start narrowing down the towns and neighborhoods that I would want to invest into. You can then start sourcing a manager or a superintendent that can assist with management and leasing. From anywhere in the world you can start building the rest of your team; attorney, handyman, contractors etc. You can also review properties online from anywhere and if you know the neighborhoods you will have more confidence when submitting an offer.