All Forum Posts by: Hament Raju Mahajan

For a Flip property in Califorina , can a CA LLC (partnership ) take title and Income taxes be filed with a CA S Corp. The idea here is manage / avoid the gross receipt tax which CA FTB charges on flip properties (even if one looses money on the flip)

For a Flip property in Califorina , can a CA LLC (partnership ) take title and Income taxes be filed with a CA S Corp. The idea here is manage / avoid the gross receipt tax which CA FTB charges on flip properties (even if one looses money on the flip)

I am looking for an attorney who can handle and negotiate business contracts and real estate finance and transaction contracts. Prefer northern California location

For a business purpose loan secured by a residential (1-4) or a commercial property located in Texas, does the lender need any license?  

Loan amounts  300K to 1M

Any Usury limits ? 

Please provide a good transactional attorney referral for handling the Texas  transaction,  doing loan docs etc.

We are currently based in California with CFL  California finance lenders license 

Don, Thanks for the feedback. Please privide me where can i get a environment screen for oakland California property   in less then one hr for $350-500

I am doing a private loan secured by a mixed use property (smoke shop on 1st floor and residential units on top floor) on Oakland CA.  I am doing this as a bridge loan and the the borrower is planning to take a regular  (or hard money ) loan on it to pay me off.   DUe to time constraints we do not have time to do a Phase 1 ESA (which conventional lenders look for .   If i do this loan without phase 1 ESA report what risk i am exposing myself as a lender? If there is an environmental fining when the Phase 1 is conducted ..are there remedies for that too  and how expensive could they get  as a worst case scenario ?

Lets look at this with following factors:

Cost to rebuild:  It will take 3 to 5 times more $$ and to rebuild a house as compared to single unit in an apartment complex

Make sense for tenants to become owners: It is cheaper for the tenants to get a loan (bank or seller financing) and move to a house near by

Economy of scale: It is not being used as the apartment complex is being purchased . One is buying 100s of housing units and  paying a huge premium to buy as compared to buying a single unit.

HIgh income and value areas comparison: In the areas like San Francisco  where housing is expensive and median income is higher ,  the cost of a single housing unit in a apartment complex is only a fraction of the median/ average single housing unit.

To me It seems that if the per door cost in an apartment complex is close /  equal or more then surrounding single housing unit  ..it happens in the very poor areas of the country where the average income is close to the national poverty line ...(which is the case in this deal )

Also there seems to lots of money chasing the apartment deals hence the valuation and asking price is where it is at.

In performing large Multifamily project (say 100 units in , C location, low median income) due diligence how could one compare the per door price of the asset being acquired and the price of condos and SFR for sale nearby.

In this hot MF market I am seeing that people pay a huge premium for MF doors as compared to condo/ SFR nearby. like to confirm this fact.

One deal i was looking at in a southern desirable MF state had per door acquisition price was about 70K and in the immediate neighbourhood condos were selling from a starting price of 30K and SFR from 110K

Does this analysis raise red flags?

How could these conflicting driving forces between the syndicators/deal sponsors (active investors )   and the passive investors be balanced and optimized.

In a scenario , If the controlling member screws it up , the passive folks should not be penalized for it.

I have heard of a very successful hard money lender in the san francisco bay area  who came up with a mortgage pool fund. He placed 10% hard cash as active owners equity and raised the rest and placed his equity at risk before the passive investors equity. He had been very successful with this approach (even  when the market was in a different cycle trend ) .

Are there any syndicators like that in the multifamily space who would bring their own  cash in the deal and also place this active owner  equity  at risk first ? or it is a unicorn in this space?

I am a private lender financing business purpose loans for investment properties in california.

I like to service my own loans as that gives me an opportunity to keep in touch with my borrowers and also turn them as my marketing agents too ( where ever i can)

I am only doing about 5 loans at a time and use xls for that (interest only loans)

I al looking for a recommendation for a cloud based software I could use for servicing a small pool of california loans.

Please advise.