All Forum Posts by: Steve Wilmers

@Ashley Pimsner

 you beat me to it as I was typing!

@Jason D.

Are you looking to finance this through a traditional 30 year fixed loan? If that's the case, it doesn't surprise me that they won't let you do it. However, if you apply for a commercial loan (will likely be limited to a 20 year amortization with a balloon after five or seven years), the LLC shouldn't be an issue. Just be sure you're talking to a commercial banker instead of a personal mortgage guy.

Thanks for the recommendation Jake.  Looks like yours turned out great!

Hi All,

I'm remodeling my current residence (turning to a rental in the near future), and need some new kitchen cabinets.  I've read multiple posts providing recommendations to Ikea and Home Depot, but does anyone in the Grand Rapids or West Michigan area have any local recommendations?

Prefab cabinets from Home Depot likely aren't an option since the upper wall cabinets need to be 42" tall (may settle for 36" for right price).  Also looking for something solid wood w/o thermofoil or a vinyl cover, friends have had bad past experiences with those materials over time such as peeling/yellowing.

Thanks!

Steve

@Lee I. As a general rule of thumb, always list the associated debt if you're showing the asset, even in a non recourse scenario. Make sure to note that it's non recourse though. 

If it was me, I'd show the asset value as 50, your share of debt as 5. If you show it this way for this property, just keep it consistent throughout the statement. Note at the end that the values and associated debt are shown on a "pro-rata basis as a percentage of ownership". 

Banks and lenders can vary in how they like this information presented, but in my experience this is how I would request that it be laid out.

I'd list all of the real estate assets individually under the real estate section (if viable), whether they're held personally or in a real estate entity.  To show that some of these assets are held within an entity, after the address or property name you could simply include the entity name for additional detail.  For partnerships, you could either show solely your share of the value and debt in the property, or the entire property value and associated debt.  Either way, especially if there is a significant difference, be sure to note how the partnership shares are represented.  Don't list any of the RE values in securities, unless it is a publicly traded company.  

In the end, the lender simply wants to have a good overall picture of your personal financial situation.  To put some icing on the cake, feel free to add in some additional detail at the end on how you filled out the form just to ensure you and the lender are on the same page.

Here's what I would ask myself in your situation, which you'll have a much better idea than I will with your knowledge of the area:

 1. What's the difference in cost/rents between the middle-luxury units vs the units in the new development?  Is there a risk that people will move from the middle-luxury units up to the new development, or is there enough of a gap between the costs to keep a steady demand for the established building?

 2. How many units are they building and how many units are existing in the middle-luxury buildings?  People typically see development opportunities because of low vacancy rates in the area or product they plan to develop.  Are too many units going up in one place?  

Welcome!

Art A. The walls aren't tiled. The tub and wall surround is a one piece unit. If I were to replace the tub, any suggestions on the material of the tub? From a logical standpoint, it seems like cast iron would be more durable, but I've read stories where the coating chips very easily.

Jesse Blair that's the cost I'm trying to avoid by taking care of it ASAP