All Forum Posts by: Nick Zias

The property is priced lower than the actual value of the property as compared to similar properties in the area. Therefore yes the cap rate is higher than the current market based off of current NOI, not potenital value add. Sorry for the confusion.

It's being sold at a lower market cap rate. 

Michael, I will put a portion of my own money towards the property as well. It is a commercial property. The NOI will increase due to increased rents. The property is also being sold at a discount as compared to other properties in the area.

Regards

Domenic - 

1) Yes the 100K is for the down payment and I will secure conventional fund for the balance.

2) Yes the property is turn-key and is profitable already.

3) The current actual cash flow will allow for a 15% return on the initial 100K. However the units are currently underpriced for the surrounding area and will allow as much as 35% return on the initial 100K "if" rents are raised. 

Patsy -

The 100K down payment will be the initial equity on the home and 8-12% will be returned through cash flow. I am wondering what is the best way to borrow against the equity I have on the home v.s. the convetntional loan, so that I can pay back my private money investor. I hope that helps.

Regards

I am not using a hard money lender. Its a private money investor whom I have a personal/family relationship with. Sorry for the confusion. 

Hi Everyone,

I am looking for some possible alternatives on paying back a private money lender. If I was to borrow lets say 100K for a down payment on a property I am currently speculating on. My current strategy would be to offer an 8-12% on his investment for the year. However Id also like to borrow against the equity I would have on the home to repay back the full amount of the loan so that I only owe the bank now. Is this a possible strategy? 

Thank you 

Thank you for the help Timothy. I will do a bit more research on this property.

There is a potential great deal I am looking at right now to convert a mixed-purpose building into a 4 unit building. The building is well underpriced but needs at least 100K in repairs. I was thinking of using a hard money loan for the purchase and rehab of the building and converting to a traditional loan after as I would like to hold the building.

1) Is this even possible?

2) If it is, how can this be done and how does one calcualte the costs involved in switching between loans like this? 

3) How do I pay off the hard money loan if I switch to a conventional loan?

This is my first time getting involved in this type of investing so I appreciate any feedback.

Regards,

Hi everyone,

I am eager to get started in real estate investing. I have recently located an 8 unit apartment building in my college town that I am interested in purchasing as a rental building. I am worried however, that it is in a bad area of the town and that the building is a bit rundown. The upside is that if I can collect rent for the first two to three years and maintain the building, I will recoup my initial investment and have the building paid off.

Would anyone advise against using a property with these traits as a first rental property?

Thank You!

Hello Everyone,

Im Nick, I live in NY and I graduated from school about a year ago. I have been interested in real estate investing for about 4 years. I joined BiggerPockets because of all the articles on BP and the involved community on here. I am looking to start off buying rental properties and hopefully contribute my experiences to BP!