All Forum Posts by: Howard Klahr

Here are a few items to consider:

You noted that the bank financing is at 25 points, I assume that is actually 2.5 points?  Also the 2% prepayment penalty, is that for the entire life of the loan or does the penalty terminate at some point?

What is the current real estate tax assessment?  How does it relate to the proposed purchase price?  If materially below purchase price how will re-assessment affect your cashflow?

Insurance coverage - same issue, how does it compare to the current insurable value and if materially different how would adjustment impact your cashflow?

What is the story behind why it has been on the market for an extended period of time?  have other offers been made and rejected?  At what terms?  Why?

How does the contract rental rates compare to current market rates?

What are the remaining lease terms for the current tenants?  Renewal options?  how long have they been in the property?

The 15% vacancy, has it been previously occupied at any point in time?  What condition is the space?  Why 15% vacancy?  How does this compare to market levels?

From the perspective of the purchaser, a reverse mortgage is no different than any other type of financing, the pay-off amount is the pay-off amount.  If the property is upside down (i.e. payoff amount is higher than the property value) then it is a short sale situation.  The bank/lender would not likely take your offer right off in that they would do their own independent assessment, but you could participate in the process once they open it up for offers.

While I agree with treating it as a new tenant in terms of screening, new lease agreement, new deposits, etc.  it does not have to take two weeks to turn the apartment and many of the items can even be performed with the old tenant still in place (i.e. screening, background check, etc).

It is not worth making this a difficult process especially if the replacement tenant is acceptable.

If you can arrange it, you would also benefit from having the Seller provide tenant letter(s) at closing for you to send along with your introduction letter.  This adds credibility and often allays tenant concerns about the validity of the transfer from their perspective.

If google contacts doesn't meet your needs, zoho crm will take to the next level

The first question to answer is who should be in that space.  Is it more retail oriented or tends toward an office space?  Does the property experience a lot of pedestrian traffic or is it more of a destination location?  Who are the tenants currently in the property and also surrounding properties?  What business is missing from that group for which your space would be well suited.

Once you address these items you will have a much better idea on who to target for your space as opposed to an open call broadcast approach.

There are limits to the extent of renovation/property condition that will qualify for a Homestyle loan.  In addition, there will be monthly payments required during the renovation period, as opposed to interest only for many hard money lenders.  In addition, there will also likely be tax and insurance escrows required with the homestyle loan.  So even though the rate is lower, the upfront and monthly out of pocket money may exceed that of a hard money loan during the acquisition and renovation.  Disbursements of the loan proceeds to pay contractors may delay the project as well as compared to using hard money to fund the acquisition and out of pocket money to fund renovations as you go.

I wouldn't dismiss the homestyle loan as a resource but there are pluses and minuses

Contact Patti Ketcham of Ketcham Realty in Tallahassee.  In the event they are unable to accomodate, she would know the best source to refer you.

http://www.ketchamrealty.com/

850 - 861 - 0600

Uhh Yes.  FCC has regulations covering this issue.  I do believe you can provide a specific TV service to tenants at no additional charge but not prevent them from utilizing another service if they so choose.

Uhh Yes.  FCC has regulations covering this issue.