All Forum Posts by: Chris Connery

Woodbury is great for cashflow. I own a 4 unit building about a block from inspira Hospital. I bought this building despite their move. There certainly won’t sit a giant vacant Hospital there. Areas to stay away from are the pocket south of Cooper street and east of Broad st. I’m sure you can make money there, but it’s not pretty.

@Josh Michel

@Ian Livaich

@Wesley Clark

@Ian Livaich

I’m in.

@Jessica Zolotorofe thank you for the response. I feel like this is not nearly discussed enough.

A small amount of paperwork had to be sent into the treasury division of my state. A representative of the state came back saying the sellers owed $27,000 and it needed to get paid before a sale could be completed. 

I think realtors can add it to their contract, but it would be up to you to file with the state. They obviously have no incentive to do so because it can hold up their deal and it does nothing for them.

I recently went through an 8 unit commercial property transaction. My lawyer (thank god) absolutely insisted that the Bulk sale Act or Bulk Sale Contingency be included in the contract. The seller of the property pushed to take this amendment out of the contract which i did not agree to. Ultimately a $27,000 tax delinquency was discovered as a result of pursuing this. From what I understand that $27,000 in tax delinquencies from the state could have been transferred to me had I not caught this before closing. Luckily it was caught, added onto the HUD-1 and I was left with no obligation to it.

I've done several Multi family transactions prior to this without the aid of an attorney and was never made aware of this concern. 

Has anyone else experienced this? I will never do another investment real estate transaction without this being included.. Cant trust anyone in this business.

@Jason McGraw how did you make out with this deal?

I have a strong feeling that commercial financing is not the same for everybody else that it is for me, which is a huge shame. It shouldn’t be that hard to secure a deal.

Let us know how it went.

Changing my mindset to realize you don’t need to work a day job you hate for the rest of your life when you can replace that money through real estate. I quickly bought 12 units and counting after that realization.

Why do you think getting a commercial loan will be so difficult. I have several commercial loans, they are 5 year fixed at 5%, they adjust every five years to the 5 year treasury note rate(around 2%) + the bank adds 3%. They have no balloon payment and extend to 25 years. 

I’ve found that If you have a job, cash liquidity and a property that cash flows commercial banks are happy to take on a deal. 

I just did some rough numbers assuming you purchase it at 600k. if the gross rents are 90,000, expenses at 31,200 and debt at roughly 30,000(based off a 5% interest at the terms I've told you are out there) you have a net cash flow of about 30k per year. 25% down is 150k. That's a 20% COC return.

I’ve obviously left out the amount of repairs you think are needed. You may be able to get them to add that into the loan amount and disburse it to your contractors once the job is done.

This isn’t a deal I would try to get out of after 2 years. I’d hold this as long as possible.