All Forum Posts by: Eric Roth

@Shawn Kross I have a decent amount of experience in lending on hotels, typically larger and either in core markets or affiliated with a Marriott/Hilton franchise, but if you want to send me a message with some more info or the listing brochure I'm happy to give you some thoughts on how to approach the valuation. 

You should get in touch with @Juan Barreneche and Abel Curiel (tag not showing up)

They are rockstars and specialize in Queens. Not sure on commission splits but you could always ask, and they are definitely great representation.

Congrats! Looks really nice. Do you mind sharing some more details? I'm wondering:

-What neighborhood specifically?

-How'd you find the deal and win it?

-How many units?

-What is the total rent?

-What are total expenses?

-What's your net cash flow after the mortgage and reserves?

I'm hoping to make a similar investment shortly so any info you're willing to share would be great.

Hi All, I am looking for an experienced and creative tax professional. I want to make sure that as I grow my investments in both real estate and other strategies, I am maximizing my tax efficiency. I'm really looking for someone who invests in deals and has direct experience in applying their tax strategies in their own businesses. My financial situation is pretty straightforward currently but I am planning to ramp up my non-W2 income in the coming years. Ideally this person will also be able to advise on how the tax implications of different investment strategies may affect the net return to me as I consider alternatives.

Please reach out if you are, or if you have a strong recommendation for me!

Thanks,

Eric

Hi All, I am looking for an experienced and creative tax professional. I want to make sure that as I grow my investments in both real estate and other strategies, I am maximizing my tax efficiency. I'm really looking for someone who invests in deals and has direct experience in applying their tax strategies in their own businesses. My financial situation is pretty straightforward currently but I am planning to ramp up my non-W2 income in the coming years. Ideally this person will also be able to advise on how the tax implications of different investment strategies may affect the net return to me as I consider alternatives.

Please reach out if you are, or if you have a strong recommendation for me!

Thanks,

Eric

I was looking for the same type of returns in the NYC area (was focused on Queens) but from the ~30 deals I looked at, the very best were ~7% cash on cash, and that's if you can get a below-market offer accepted and can do some rehab work. If you get an interest-only loan you can get closer to 10%-12% but given where we are in the cycle I decided not to go that route and am looking out of state instead.

@Account Closed I don't have any local contacts for you, but if you are looking at larger deals I may be able to assist. Minimum loan size is ~$5MM and properties must be at or close to stabilization. Let me know if that fits your target deals, if so let's chat!

Thank you @Kenneth Garrett and @Justin Kane. So basically structure it as preferred equity so that I have an interest in the equity of the LLC and I can take possession of the LLC if they default on the terms of the operating agreement. The operating agreement can define the preferred return they owe to me, how it accrues, amortizes, etc. Correct?

Then the only concern is if I am essentially the hard money and lending their down payment, coming in at 100% their cost, they have no cash in the deal so if it goes south they can turn over the LLC and I could be left with an under-water deal. Is that how you see it too?

Hi All,

I'm considering the opportunity to lend private money to a small group of investors I know who are buying rental properties, doing slight renovations, and leasing them out. The business plan seems solid and I trust the investor group. They approached me asking if I'd want to lend them money so they can pay a down payment and show some cash in the bank for reserves in order to obtain a conventional mortgage on their next deal. My question is, what are my options to structure the loan with some decent security since I won't be able to have a first lien (or probably any lien) on the property they are buying.

I've heard of taking a lien on their primary residence, but if they already have a mortgage on their house, is that even possible? Would the mortgage lender allow it?

I could take a personal guarantee from each member of the group, but I'm not sure what that's worth since I believe most of their assets are in their investments (hence the need for private debt), which are probably in an LLC. Maybe a guarantee from the LLC as well?

I'd welcome any thoughts or advice on how to make my position in this deal secure. Curious how you all would approach it.

Thanks in advance.

Eric

A 10-year lease for a commercial unit (i.e. retail or office) is not unusual. Typically it would include annual rent increases of 2-3% per year but for a small building with mom and pop owners like this it seems totally normal. It would be highly unusual for an apartment unit.