All Forum Posts by: Greg Scully

@John Casmon - We have a bridge loan with no prepayment penalties.  Shop around if you're finding that in the terms.

For fixed debt, we prefer step-down penalties over yield maintenance, community banks may negotiate on the pre-payment terms.

@David R Miller If your looking for comps or the potential ARV, I would recommend using a realtor to get a CMA (comparative market analysis).

@Matt Lyons - Ask a realtor for a CMA (Comparative Market Analyisis). You can also search sold properties on Realtor.com to get some idea of what things are selling for.

@Luis Escudero - There are many variables that would need to specified to give you a good answer.  What specifically are you including in your renovation?

@Mario Am - Whichever course you take, assume 10% for a property manager.  If it needs self-management to make the deal work, I would not consider it a deal.

@Jeremy Mattson - That's something I've heard passed around more than I've put into practice.  I've heard market is "x% over tax appraisal".  Might be worth running by your realtor.

@Jeremy Mattson - You may need to do a combo sq ft/sales comp and/or determine it's value based on how far under market the tax appraisals run. Do you have a realtor that can run a CMA? Some will do it free or for a small fee.

@DeWayne Allen - You can model it the same as apartments assuming you're still using commercial financing.

@Chealsea Hayes - Does it meet your investment goals?  

The process requires qualifying the income, expenses, lending, market analysis, repairs budget, etc.  Everyone goes through the same analysis until it spits out a returns projection.  If those returns fits your parameters, you've got a good deal.

Income and expenses are two key components, a good property manager can help you verify them based on their experience.

@Noel Dixon - Business Interruption insurance.