All Forum Posts by: David Itman

Thank you!  I did see that earlier, but hesitated. 

Now I went through and filled it out in a few minutes.  They either charge a one-time $39 or will give you a "free-trial" if you sign up.

I now have a signed lease! :-)

I am both the tenant and the landlord.

The management company (me) has to write a lease to the operating entity (also me).  I may have my attorney draft this, but since I am writing this lease to/for myself I was hoping to navigate this on my own.   It doesn't seem like there is any risk or liability here, maybe I'm mistaken??

This is really a document that my bank wants me to have in place. 

Does anyone have a commercial lease Template?

I am purchasing a 10 unit assisted living and I need to write myself a lease from my management company to the operating entity...You gotta love banks!

Thanks,

David

Thank you!

Who do you like for online background checks?  I have 5 applicants that I need to run for a new duplex.

Thanks for any input!

I've been doing a LOT of digging for 2-4 unit buildings in Saint paul and you CAN find ready to live in duplexes for $200 in decent neighborhoods.  The fancy parts of St. Paul are out of this scenario, but midway and frogtown are both examples of neighborhoods in which your money goes a lot further.  They are both going to continue to be strong growth areas because of the lightrail, new commercial development, etc.  They both have some sketchier pockets, but also have some really nice pockets.

I'd stay away from those cheap units in bad areas. They seem like the cash flow should be great, but the maintenance and tenants are WAY more work than you'd imagine. It will suck your checking account and your desire to keep investing in real estate.

Targeting $150-220 should put you in a good range to find something.

Hopefully this is helpful.

David

How I got the contract is kind of a longer story, not sure if this is the right place for it.  It was the result of using equity from selling a previous property (another good story) and doing a 1031 exchange to put up my cash on the contract for deed.

We put up only the proceeds from the previous sale which amounted to a 20% down payment on the contract.  I initially bought this with my partner, but have since bought him out as a result of another deal (really good story).  So now I am the sole owner of this single family home and have 70-85k in equity (depending on the appraisal).  This whole chain started with an initial personal investment of $8k, 3 years ago.  Love real estate!

Update: That meeting went better than could have expected.  Went to a small local bank and sat down with the VP of commercial lending.  Handed him my "Portfolio" and he immediately looked at my financial projections (from BP) and was very impressed.  Said "I really appreciate you bringing this in; It's amazing how many people come in here with no financial projections and no plan."  

They do underwriting in house, so they sit at a boardroom table and look over the file and make a decision. He told me that this should be a slam-dunk. This is HUGE because it allows me to build credit for my LLC that is not backed by me personally.

He also asked that I send over the numbers on another apartment building that I am working on.  This is with a different partner and is a whole other story, but the banker was very excited to hear more.

On the way out he walked me around the bank and introduced me to everyone, including the President of the bank.  

Super excited and feeling ready to blow up!  

Tomorrow I am heading into a bank to refinance a rental property that I own on a contract for deed.  Thanks to the podcast, it occurred to me to put together a nice organizational binder complete with a bigger pockets rental calculation/financial projections.  Nice added layer of confidence walking in the door.  Thanks BP!

Thanks for the referral, Chris.  I will PM you and reach out to him.