All Forum Posts by: Dustin Smith

I guess I never really considered it. I know absolutely nothing about retirement communities. The comparative analysis as far as anticipated rent or property values? I really wish I could tag people on my phone...

Yes, thats the case. Absolutely, the numbers could be light, but they are rough estimates right now. I'm hoping to take my general contractor to look at the property today to see what he thinks and get a better grasp on the project. I'd certainly make sure the general could get it done in our timeframe and that the commercial mortgage broker was on board before working with hard money. I certainly don't want to get into something I will not be able to finish or exit. 

I'll certainly look into the cost of metering once I get a better feel of the property layout tomorrow. 

It very well could be. Its a rough figure. It does however figure appliances, cabinetry, countertops, new walls, new electrical wiring, new plumbing, all new flooring and sales tax among other things. I go to look at the property tomorrow, hopefully with my general contractor. But for the mean time, I need the info about the hard money opportunities. 

@Travis Sperr?  Sorry, trying to get used to the workings of BP.

Thanks for the reply!  I actually looked at your webpage, but I got the impression you didn't work on properties larger than 4 units.  I would absolutely agree with that.  The property isn't worth hardly anything if it can't be rented.  With that said, the area has around a 3% vacancy rating and there is usually minimal issues with finding tenants.  The property is also in a great location, roughly equal distance to each of the three universities in the area.  In regards to zoning, the current owner already has plans drawn and approved to turn the property into a 6 unit, with approval to build an additional 6 unit structure on the property.  From a hard money lender standpoint, what concerns do you have?

For the record, the property is actually in Minnesota.

Hey all,

I recently came upon an interesting opportunity to purchase an 8000 sq. ft. 20 bed 7 bath retirement home that I plan to turn into 6 apartments.  I figure I can get the property for $210,000 plus closing costs, spend around $95,000 in repairs, new construction, appliances, etc. for a total of around $315,000 and have a property worth $450,000 on a bad day, which I would plan to rent out.  Most hard money lender sites that I've visited are strictly single family fix and flip or at most 4 unit.  The ones that are willing to do bigger buildings or loans over $250,000 aren't playing in my state, at least based on the information on their websites.  Does anybody have any experience with anything like this?  I assume they have to be licensed in a specific state to do business there?  Alternatives?

Also, side question. Being that I would have a $450,000-$500,000 finished property with $315,000 into it (70% ARV) is there any reason that I couldn't just refinance the hard money debt into a conventional commercial mortgage with the 70% LTV and no down payment? Seems to me they get the security they want, I don't have to put the extra cash in. Or am I completely crazy?

Thanks in advance!

It's definitely a woulda coulda shoulda out there! 

Welcome to BP! Where are you based out of? I grew up south if Staples.