All Forum Posts by: Marc Middleton

You'll need private/secondary financing for this type of deal. Regular banks can't help and you more than likely will need 30% down or more, depending on the income of the building itself.

I have lenders I've worked with in the past that have done 65%-70% LTV on buildings over 5 units. If you'd like, I can have them reach out to you?

You will need to put the property into a corporation and then have ownership % for each person.

problem is you can't get residential financing for LLCs/Corps. You'll need secondary financing and thus a $200k loan would mean you'd need to put down about $75k + any closing costs/points from the lender. 

The amount of down payment provided by each member does not determine each person's ownership. Maybe someone will do the renovation? Maybe someone else will handle the property management for free? Its all in the corporation documents you'll have to create. Normally I tell people just to jump on Sunbiz but for this, you should probably have a CPA Or lawyer handle your start up docs. 

Also, Daytona is pretty dead right now. Be prepared for a long-term buy n hold unless the gambling or short-term rental regulations change. One of my investors owns a 9 unit on Grandview and we have a local property mgmr handle everything. They pay weekly and we evict 2-3 per year. And we have to put the utilities in my investor's name because everyone's credit sucks. 

Best deals are the sub-$250k single family homes 1-2 blocks from the beach and apply for a short-term rental license. 

I just got word of a great new listing coming on the market. Its in Jacksonville. 2000 sq ft Office building, a 3 bedroom home, and 2 garage bays. Everything is renovated. PGI would be around $5k/month. Asking price is $449k. Total rentable sq ft is around 5200 sq ft.

Located just West of 95 & US-1 near, not far from Baymeadows.

Office building is rented to 1 commercial tenant but could be broken up into smaller offices if they vacate.

House has wood floors, gorgeous bathrooms, smart Locks, led lights, and many other upgrades.

PM if you are interested or know someone that might be. This will go quick once its public!!

thinking I should make an offer just  because of the street name :-) 

So you're gonna move out of your single family, rent it out, and  move in to the 4plex?

Do you have your financing lined up? how much down are you using? Have you purchased commercial property before?

Under $100k is tough to get investor financing. 

I would get that lined up before you do anything. Know what the loan costs will be so you can factor that into your potential cap rate. 

I agree, lots of good buys right now even on the MLS. Plenty of motivated owners who might take $30 or $50k off, you never know.

Investor agents don't mind doing the offers. Save as a template, e-sign everything, keep some funds in a local escrow account, etc. We do this all the time. 

Price Reduced!!! $949k :-) 

Plenty of deals around Orlando you can look for. Don't try to go into high Crime areas like Baltimore unless you have a team on the ground or know the area very well/travel their frequently. 

$49k is not a ton for investment. You are better off buying something with a lower cap rate in the $125k range and putting 30% down. Get a residential or commercial mortgage with a rate in the 5's and no points. Fix it up a bit ($5k-$10k) get a good tenant, and start with 1 at a time. 

Not putting the loan on your credit is great for him. It keeps you from building your business credit. Same thing Buy Here Pay Here lots do with cars and subprime financing. "No hard inquiries, nothing on your credit" - yeah and its much easier to RePo and you never get a head so you're stuck constantly using them. 

8% is standard for a Hard Money loan, and 10% isn't crazy either. 12% is a bit high.

Better off getting friends/co-workers to help fund the remaining deal and own the property outright, then cash out Re-Fi with better terms and go find your next one. 

Just my $.02 from years of helping investors & 1st time flippers.