All Forum Posts by: Mike Dymski

@Brent Shryock 

Thanks, good stuff.  Few questions (1) amortization period (2) current rate for excellent credit (3) assumable and (4) can you provide specifics on the prepayment penalty?

What's the best way to bridge financing from the rehab period to this permanent financing (traditional...no private or hard money) and is their a stabilization period required for the raised rents?

Thanks, this is one of the better pieces of feedback I have received on BP.  I'm getting familiar with this bridge financing before calling my banker.  I already own part of this complex and it gets more complicated when you include those existing units (with another set of units that I may purchase) in the final permanent financing (and potential non-bank financing at that point).  I'm also not familiar with banker's appetites if non-bank refi's are in play.  I will reach back out as I get further up to speed.  Thanks again.

@Peter Mason Thanks for your feedback.

Using her contractors would require me to either find a new PM or have to sell the property because it would be unprofitable.  Her vendors needed $5000 for an apartment turn and we did it for $2500.  I'm turning/rehabbing 29 units.  I did not have her use my contractors...I had to go find affordable multi-family contractors for her while the units sat vacant.  I provided her with MF flooring and painting contractors and a local maintenance guy.

The late rent is pretty straight forward...that needs to be addressed on the late rent date and forward and not 30 days later with not discussion with me.

We've had good dialogue and daily contact now.  I shot her an email this morning on two of the past due tenants who were supposed to pay yesterday and today is eviction filing day if not paid.  We will see...I am optimistic.

Thanks again for chiming in and providing some insight...it's helpful from a former PM.

@Kerry Baird rate ended up being 4.25%, 0 points, rather than 4.625% as mentioned above

@Kevin Hunter Will do.  I'm having daily contact with her...too much, but that's the short leash.

The silver lining is that the re-positioning project is working well on this small complex; so, I'm balancing the challenges with some wins.  I'm an unemotional 44 year-old accountant and get giddy as a schoolgirl when a unit turns, I see the product and, most importantly, plug the numbers in my personal financial statement.

@Karen Young I just sent you a private message.  I am coaching the situation...time will tell.  When you play in that space in between a handful of units and a larger scale when employees are cost effective, PM could be a challenge.  I'm (trying to) systematize everything to be able to scale.

For those of you flipping or refinancing apartment complexes with commercial loans, what have you done regarding loan prepayment penalties?  This may be a simple answer and you just refi with the existing lender and have them waive the penalty or you just pay it and include that cost in your modeling assumptions.

@Gino Barbaro tks, just messaged him

 sure thing, good luck

@Gino Barbaro

@Troy Fisher

Thanks for your feedback.  I shopped around quite a bit using commercial broker referrals, residential agent referrals and other investors.  Most of the clients of the high volume commercial brokers in my area either use their own contractors and some do not inspect at all (other than owner and PM walk-thru...hard to imagine).  I narrowed the list down to two inspectors and they both had prior MF experience and came well recommended; so, I went with the guy I had previously used...went well.  Troy, I read posts here on BP with inspectors pricing as you mentioned...$x/door + $y sqft.

Gino, as you mentioned, I do miss the report.  I've used his report extensively on SFRs in the past, even those purchased "as is".  I had him give me bullets of the key items we discussed (along with ages of the mechanicals & roof) and we will use the list to have the seller repair one condenser and one hot water heater.

Thanks again for your feedback.