All Forum Posts by: Steve L.

Be careful with this approach if you are an investor who has a desire to get commercial bank financing in the next 2-3 years.  If you're rentals make no money on paper, commercial banks have no proof you are a good landlord and had little desire to lend to you.  Might be smart short-term but hurt your growth long-term.  

You ever read John Schaub's book... Building Wealth One House at a Time.  

He compares the 10-year price difference for houses he chose to buy in The Strand (I think Manhatten Beach area) to houses in Compton.  They are just 17 miles apart.  

California has the same laws as the other posters mentioned.  Only if you manage for third parties.  The issues typically have to do with handling security deposits and holding funds for third parties (eg: trust accounts).  

I would ask your regional bank if they are happy to lend to entities.

My CPA recommended an amount of equity per entity versus the value of the property.

Now that I have 6+ entities I am trying to simplify my life and not starting any more.

Welcome to BP.  Fontana is one of my favorite cities.  I wish I owned more there. 

Good luck

I'm kind of late to this thread. You have decided your long-term goal.  In this market you will need to take some short-term steps to get it.

1. You will need to likely buy non-performing/under-performing Class C properties and fix the issue.  This will substantially increase the cash flow and value.  

2. You can then 1031 exchange this into a Class B and repeat the same process.

3. From there you 1031 exchange into a Class A property.

I own lots of asset classes.  My criteria has the biggest emphasis at buying at a discount versus what asset class/property type.  If I buy Class A or Class C it doesn't matter much, I just want a big discount.  

This will give you experience for the banks, let you know what you want, etc.

To answer your other question there are many commercial lenders that will loan under 500,000.  Credit Unions and Regional Banks is the place to start.

I have a lot of loans from regional banks.

1. What is your experience in real estate, asset class, servicing debt.

2. Your DSCR on existing portfolio and if you have the cash to pay it.

3. Cash in the bank.

4. The amount of deposits you'd bring to the bank.

What I would do if I were you.  Build a resume.  Build a strong cash flowing portfolio.  Build cash reserves.  Maybe do some joint ventures that can add to your experience.  

This is can happen when title companies make mistakes.  The company who screws up with honor new policies to cover their butts, because eventually they will have to fix it.

Did they disclose you were only getting 1 lot?  

I PM'd you the lawyer I use in Rancho Cucamonga.

I think if you have to ask you shouldn't do it.  Old buildings have lots of extra expenses.  

You could be fine, or it could be real expensive.

Likely, a contractor who knows a lot about old buildings should be able to do an inspection and give you a good idea of whats there and what will need upgrading when it breaks.