All Forum Posts by: Charles Seaman

@William Coet Check with @Cristian Rocael Carrillo.  He can send you a link to a file with a lot of commonly used terms.

@Kristina Anderson You're welcome

@Kristina Anderson It depends on the verbiage in your contract.  Many contracts state that the seller has the right pursue collection of any monies due to them from tenants, but that they lose the right to evict them because of such.  Some contracts state that the buyer isn't responsible for collecting past due monies that predate their ownership, but that they must turn them over to the seller if such funds do get collected.  So the answer is that it really varies.  For a 4-unit property, you're likely going to use a standard state residential real estate contract.  Read through the wording to make sure that it's satisfactory to you.

@Abe B. Use the link below for reference.  This is from an insurance broker that I've used for multiple policies.

https://www.ratemap.org/

@Peter Eberhardt That's a good starting point.  Similar to what Taylor suggested, know what your strengths are and look for groups that need what you offer.  That will lead to a better result.

@Peter Eberhardt Either option that you suggested can be effective.  It really depends on you.  Some people want to learn first and then take action.  Others prefer to be thrown right into the fire.  Many people prefer the former.  I personally do better with the latter.  If you choose the latter, then the recommendation that @Taylor L. made is a good one because you're positioning yourself as somebody who knows what they're good at.  In my experience, I find that many experienced syndicators don't typically take brand new people on because they have too much to do to start training somebody from scratch.  You can likely find a spot with a newer group that's growing and has a need for free help in exchange for education.

@Heeyeon Chung Being that seller financing is very negotiable, I would negotiate whatever terms help the deal make sense. I'd probably aim for somewhere between 70% LTV and 100% LTV with a 6% interest rate because that's what many sellers seem to be accepting right now (but if you can get it lower, so be it). You'll probably get anywhere from a 2-5 year term with seller financing. Push for as long as possible in case it takes longer than expected to legally convert the property from motel to multifamily. Some sellers will also give you interest-only payments throughout the term and others will give you a balloon payment with no payments due for some or all of the loan term.

@Heeyeon Chung Being zoned for use as a motel and operated as a multifamily property will probably make it challenging to obtain conventional financing, with or without existing financials.  Have you spoken with a bank and explained that aspect to them?  I can't imagine any banks being excited to finance that.  Your best bet is probably negotiating a seller finance deal with the seller.  If she's refusing to provide financials and if you can't obtain conventional financing because she's operating the property illegally, then your options are likely buying it with cash and refinancing it after everything is in better order or using creative finance (like seller financing).

@Heeyeon Chung Are you planning to use conventional bank financing?  Some banks might be flexible and willing to underwrite the loan based on your pro forma.  You can definitely find bridge financing that would finance it without existing financials, but most of that is going to be very expensive right now.

@Heeyeon Chung You can't force the seller to provide the financials.  If she doesn't and they're important to you, then your only real option is to terminate the contract.  If you're confident in the future value of the property and believe that you know the area well enough, then the seller's financials might not mean that much to you.  In that case, your option is to forge ahead using your knowledge and expertise to move forward with the information that you do have.