All Forum Posts by: Ko Kashiwagi

Hi Mark,

I've seen great arbitrage taken advantage of by investors to get much better cashflow with commercial leases than residential and commercial tenants tend to have long leases with sometimes less hassle (NNN).

In my opinion financing the property is more difficult for mixes use especially if the loan amount is sub 500k-1M because there's limited options but if it's for example over 1M you could get really good rates if the NOI is there and bank financing if available.

Hi Rick,

I currently have an out of state deal managed by my Property Manager. Mine is a BRRRR and the PM is getting the lease agreement so it's a win-win. For a flip, maybe you can get the agent to do it so they can be the buyer's and listing to double dip? Creating win-win like this is my personal favorite.

I've also paid a realtor hourly to be a Project Manager once and just paid per visit/hour with a bonus for getting the project done on time.

I always try to have multiple layer of eyes for out of state deals - agents, Project Manager, Property Manager, contractors, subs, boots on the ground to ensure things get done quick

Dual agent meaning listing agent also becomes your buyers agent or becomes transaction coordinator to represent both sides.

If you are familiar with the market this is not recommended. I'd say work with word of mouth to find a good buyers agent, check their reviews, interview them and proceed if you like them. It's a seesaw because typically the more experienced the agent the more chance they require exclusivity agreement because their time is inherently more valuable.

Hi Chike,

Financing for 5+ units are more limited and typically even more so for first timers. If you care about rates & leverage, starting with 1-4 unit is probably much of less barrier. Unless you can obtain a true full-doc commercial mortgage (which typically requires 500k-1M+ loan amount), typically 1-4 units actually have better leverage & rates. Also deal flow is going to be bigger for 1-4 unit so I personally think that's an easier start for first timers.

Good luck!!

Hi Rodney,

More than half of the agents I've worked with haven't required them but perhaps NY is a little different. One way to navigate this is to just look for deals yourself and get the listing agent to be a dual agent on that transaction specifically. That way you can look on your own.

From the contracts I've been offered typically it gives you the right to cancel and fire them at any point if you are not happy as well. So you could technically just keep on moving on until you find the right one.

There are STR DSCR financing options that may be a good fit, which would be 30 year fixed financing. With 12+ month of operating history, you should be able to get the best STR programs out there with good FICO.

The easiest way is to just ask contractors for a bid or ask your local investor what their budget looks like.

I personally started with a rental and then a BRRRR for the second deal because it's a lot easier to go from a rental to BRRRR then starting with a BRRRR,

There's 10% down programs for first timers if they have good FICO and I've done these, but most programs limit to 20% down if they don't qualify such as lower FICO, rural areas or high rehab budgets

Getting an attorney and using a servicer is real important. Not sure how it works in TX but I'm sure there's title companies & attorneys that have done hundreds of these.

Hi Rob,

Just to clarify, is the property use a commercial right now? or the zoning?

Either way because you have so much equity you should be able to grab a business purpose residential or commercial loan and use equity to do the rehab.