All Forum Posts by: Harjot Gill

@Account Closed I'm not sure of the benefits. That is why I posted this topic. 

I figured, if the property is valued as an 8 unit commercial property, it would have a higher valuation as compared to (2) 4plex units valued through comps.

@Michael Boyer

Great points. I never thought about that. I figured if I could build up the 8 unit complex it would have a higher valuation. 

@Stephen Chittenden

Thats a good idea. It pretty much looks like a 8 unit apartment complex, the way its set up now.

Hi BP!

I'm looking at 2 4plex units that are right next door to each other.

Is there any way combine them onto one lot and turn it into an 8 unit multifamily unit?

I just signed up for the program. I will hopefully be receiving a call in the next few days.  Seems like there are mixed reviews about Paul Harris' program. 

It is difficult to put up $10K, but I do understand having skin in the game is important.

@Dion DePaoli

Wow thats great information. I appreciate it very much.

I do plan on consulting a lawyer. What type of lawyer would you recommend? Real estate lawyer?

@Dion DePaoli

Thank you for your help!

The loan amount is large. One property is going to require $70K and the other property $300K. The ARV is going to be over $400K and $1.9million respectively. I think construction milestones are a great idea.

I will not be collecting interest, instead I will be receiving a percentage of the profits upon sale. The purchase to sale estimate(escrow to escrow) is about 6 months.

The broker that I am going through speaks very highly of this borrower. They did a deal in the past where after rehab, the property sold for above market value. (Although I just met this broker, and will meet this rehabber soon).

Since I will be receiving a percentage of the profits, can I structure the agreement in a way where I have own that percentage of equity in this property?

But then again, splitting costs may be a slippery slope. He may want to start doing unnecessary upgrades and expect a 50/50 split on all upgrades he wants to do.

@Justin B.

Thanks for your input. Thats an interesting perspective. I agree with you. And maybe even split some of those costs with him 50/50 since they will be adding value to the property.

Hi,

I'm planning on lending to an investor that needs money for rehab costs. 

He already has a short term loan that he used to purchase the property.

He needs extra money to over the rehab cost.

How to should I structure this loan?