All Forum Posts by: Rene Hosman

Congrats Sam! Welcome to the BP community. Where are you looking for your first fix & flip?

Thanks for sharing Garrett!! I'm so curious where you got the glass cabin from? Looking to do something similar out in CO in the next few years!

Are you caring at all if this cash flows? Seems like if you pull out 35k assuming you can get a similar 7.5-8% interest rate (DSCR tend to be slightly higher than primary residence rates) you would be barely breaking even. But perhaps that's no issue for you??

It does seem to pencil out for a DSCR loan as you'd be able to show that you can rent for enough to service the debt!

I would strongly recommend reaching out to a lender who understands investors and various loan types out there, there are a lot of great lenders on the lender finder tool here - https://www.biggerpockets.com/business/finder/lenders

Shoot! Keep us posted about where you wind up deploying your capital, don't get to hear about EU investments often over here in the US and would love to hear more!

@Steve Scholtens Glad to hear you preordered the book, I am looking forward to reading it as well! Went to a meetup in Denver where Heather was last night, she had some great insights and points she mentioned that are not in the podcast so I'm sure the book has a lot of great info. Keep us updated on what you think of the book and how your potential RV park deal goes!!

@Maria Murphy I see maybe I misunderstood this part - are they themselves (or their company) the ones who will renovating the unit for you after the sale?

Congrats, that's great! I'm curious with already-in-place commercial tenants, besides checking that they are paying on time, is there any other due diligence you do on the tenants before purchase?

Is there any way to hire a third party to hold the funds even if it's not required by law? If the seller needs the cash upfront to finish the rehab I would be skeptical, and if they're not willing to use a third party it might be suspect. 

I was nearly scammed by a seller in the US who I met in person, met his "associates", toured the property with and everything, but my tip off to do more research was that he was against using a third party to hold funds in escrow even when I said I would personally pay all associated fees and noted that it would not delay closing at all. 

His negative reaction and aversion to wanting a neutral third party to play referee was a tip off to me to do more research and after paying $25USD for an online background check on the seller I discovered he had multiple judgements against him for business fraud even though the title to the property was clear.

My personal lessons from my scammer were

1. Have a good attorney who is familiar with the laws in the local area so they can tell you what your options are to mitigate risk in the deal

2. Always do your own due diligence on the project and the seller (as much as you can)

3. If things seem potentially too good to be true, they just might be

That's good feedback, thanks! Hopefully someone here on the forums has some good insight. I've never been the landlord for a commercial property but have leased commercial property before - I leased through a commercial real estate agent who was acting as a leasing agent for the property owner, and the property owner was the one who collected my rent and is who I made repair requests to so personally haven't dealt with a Commercial PM before but will continue to follow this thread to learn more!

Are there already tenants in place? If there are vacancies how does one typically find tenants for industrial space like this, just list it with a commercial agent and let them do their thing?