All Forum Posts by: Percy N.

@Anthony Palmiotto , what is the total purchase price and total Capex needed?

Most likely the total rehab will be more than the $91k.

Go to some local REIA meetings and meetups and see if people are interested in JV on this deal.

Look into the Small Balance loan for $1 - $5mm. Its non-recourse and they will allow you to put some funds towards rehab.

For larger Multi-family assets (100+ units), the fees are typically in the 3% - 4% range, plus payroll (leasing agent, prop mgr, maintenance, etc based on needs of the property).

As @Theo Hicks mentioned, there are add-ons like a construction mgt fee.

We also sometimes see an employee discount for those who live on the property.

One way to increase the PM revenue is to put in a bonus structure where if you help the owner achieve X, you get a bonus. This helps both parties.

@Joseph Ems

Talk to @Joseph Scorese at First Trust

or 

Conrad Driver at Harleysville (not sure if lend in the University City area).

Take a look at the many OMs floating around.

Also take a look at CREPro to create a nice brochure (online or PDF)

@Charles Stanback ,

Population growth, job growth, crime, schools, taxes, occupancy levels, labor availability, etc. are just some of the factors that play into it.

Larger macro-economic things like credit markets can also have an impact at a given time,

@Rafael Zavala , I recommend looking at the resources available at http://www.donaldpbeck.com/, especially the "Down to earth landlording" book which gives a good overview and tips. Don's lease template is also used quite heavily in this area and across PA.

I am not associated with Don nor do I get any monetary benefit from these recommendations, other than been a satisfied user.

He used to be the president of a local REIA (before my time) and I think still offers live training courses a couple times a year.

@Matt Faircloth , I have only seen this in on one SFR flip we were doing.

It seemed hard to maintain as you noted and not sure I would put it into an apt complex.

Even with the maintenance plan, you will still have the high humidity issue.

@Sanjoy V. , really depends on the loan terms from your lender. Some have no pre-payment penalty, others have a 0.5% to 1% of balance and others have a step down (decreases by year).

The biggest drawback of buying an extablished LLC would be potential litigation which would not come to light for 6-12 months. In large transactions there is sometimes an escrow set aside for this.

If the LLC has a mortgage then there can be some complications as well.

Can you create a LLC with a registered agent?

If so, it should be a pretty easy and straightforward process.

The big issue I see if when purchasing a property or adding additional properties is that the title company will require a notarized copy of certain paperwork.

Not a lawyer, so please seek professional advice before taking action

What you have is an "installment loan".

Not enough info to say whether this is a good deal or not but if it is, you can partner with someone for the rehab money or if some of the units are cashflowing, do the rehab over time, or refi or.....