All Forum Posts by: Michael Knaus

Yes! Thanks. Great insight.

Anyone?

So I have an opportunity to purchase a doctors office. There are several exam rooms and private offices. There are 6-7 rooms I can rent out. Each room to a separate tenant needing simply desk space or a single office. We would have a joint conference room, reception desk, 3 shared bathrooms and a nice break room area. I have no idea what to charge. This technique is not common in our area. I realize that the rates will be different based on location. Obviously an office in San Francisco will fetch more than eastern PA. Just some ideas and points to consider for all those that have been involved in this sort of thing. Thank you in advance!

Not sure if you want to throw good money after bad so to speak but you could always go and bid on the first at Sheriff Sale. Hard Money usually wont touch it unless there is some decent equity in it. That's why the second was needed I assume. The upset bid to cure the first may be doable, who knows? Depending on the particulars, you might be able to salvage all or part of your investment by selling the property after you secure it. I realize it may be a stretch but you may want to at least explore this. 

I have someone that can help. I sent you  a message. Not sure if I can (or if it's appropriate) to share info directly on the forum. 

Thanks for the info! I wasn't sure because I have a well at my house and mostly flip so it's never really come up. It just seemed high but I suppose I shouldn't complain!

So I have been reviewing my water bill. The usage seems high so I am taking a closer look. I have a 3 unit building. 

Unit 1: 1br with 1 tenant

Unit 2: 2br with 2 tenants

Unit 3: 3br with 2 tenants

The building is on one meter. The water company has billed me for 6000 gallons this past month. That's an average of 2000 gallons a month(67 gallons per day) per unit.

My question is: Is it possible to have this kind of usage? It doesn't seem possible. The older tenant doesn't even have a dishwasher. Yes each unit has laundry but 67 gallons a day? Per unit on average? I checked and there are no leaks or toilets running and no outside hoses for tenants. It isn't new. It has averaged this for months now. Now it's only just under .01 Cent/per gallon so the bill isn't horrible, I just question that usage. Any advice?

Has anyone ever had any luck (when using private money) getting the seller (REO) to accept a pre-qualification letter from a private lender? For the successful attempts, would anyone like to share how it's worded?

I have a private lender that wants to use a business LLC to fund a deal for me. I am taking title in my business LLC. The seller wants to see either proof of funds or a pre-qual. I am stretching to get this deal and don't have the liquid funds right now to show the proof of funds myself without refi on an existing asset (not enough time anyway). I am hoping they are ok with a letter from my investor stating that he will fund the transaction. I want the wording and format to be spot on.

Any tips will be appreciated!

I have noticed a few properties for sale that are owned by Castle Rock 2017 LLC. They seem to be a large wholesaling outfit. I have researched their purchases and sales. They seem to buy cheap and sell cheap and scoop up smaller margins. Apparently they buy in bulk from what I have found. Just more curious than anything. I really like that business model! How does one going about buying in bulk? It doesn't look like they are buying notes but actual REO's.

My biggest concern is not any of the construction/remodeling issues. Anything can be fixed. What you can't fix is where the house sits. What is it now zoned as far as flood zone? Did you get an elevation certificate? When was the last flood? How often has the area flooded? 

I live in an area that has flood zones. Down by the river. I can buy houses down there all day long at really good prices and not to brag, can fix anything caused by the last flood. The problem comes when you go to sell it. Your area may be different (i am hoping), because in my area, flipping in a flood zone is trouble. Buyers know this and selling them is tough business. Flood insurance is ridiculous. Since the last flood, FEMA came in and re-zoned the area and it's not good.

Even if insurance is not the issue, our buyers don't want to deal with the idea of living in a flood zone and what can happen. Our last flood was in 2011 and buyers are STILL very cautious in those areas.