All Forum Posts by: Richard Cedars

Hello everybody!

I was talking to a mortgage specialist about my plans to start buying multi-family assets on the commercial loan side and he reminded me of a typical 3 year seasoning period before I can refinance. (I live in Canada if that matters)

I have successfully completed BRRR deals on two 4-Unit apartments but it was on the residential lending side.

Any suggestions on how I could structure my plan to do a BRRR while navigating seasoning periods? I have yet to tread these waters- any feedback helps!

Thanks in advance,

Rich

I am preparing a capstone presentation for a business model that I have been putting together for a Business Management Program that I am completing.

I am going to be presenting this to a panel of business professionals and will have an ask at the end. I’m likely asking for access to capital to help propel my multi-family real estate business.

What tips do you have for me pitching my business plan to a panel of investors/business experts?

Much appreciated!

@Whitney Hutten

Wow! What a nugget of gold you have shared! What a fantastic suggestion Whitney.

I will keep that in mind moving forward on all deals.

Thanks again for all of your help and support!

@Whitney Hutten

Thank you for your feedback.

I do have a realtor representing me. In fact, we had a lengthy discussion today to determine my next few steps.

1. I am waiting for confirmation that I will be approved for financing.

2. My realtor will then go back to the seller’s agent to negotiate a cash back credit on closing. (He is suggesting that $15k is not unreasonable)

3. If the sellers accept, then upon closing, I will have a deal where I ended up only having to put down 9%, and will have $15k in additional rehab money to get a jump on the property.

4. If the sellers do not accept, I will walk as anything lower than a $15k discount on the purchase price won’t check out for me.

I value your input, and will make sure that my numbers check out. End of the day, I need to make sure that I don't get myself into a position where I spending more on the property than I will see on the ARV. Obviously the greater the margin, the more of my capital I will be able to pull out of the property during the refinance!

Thanks again for your support; it is greatly appreciated!

@Greg Scott

I appreciate your response.

I hear what your saying about the ARV. I'm waiting to hear what my realtor has to say about a comps in the area.

I do not see a way to get my all in investment to be at the most 80% of the ARV; but I also want to avoid a deficit as well.

As for rents, I stand to raise the total revenue by $600/mo (confirmed by PM) and could potentially decrease monthly expenses by about $500/mo.

Currently the property operates at a $400 positive cash flow.

$70k invested plus $24k down payment will still give me roughly an 18% cash on cash return before refinancing.

I am not sure if by going back to the seller in a sellers market asking to reduce the sale by 1/3 if that could come across as arrogant or inappropriate. I also want to avoid pissing off my realtor. Perhaps I could see what he would recommend, trusting him have both my best interest in mind and also to be the professional in the market (property is located 5,800km away).

Hello everyone,

This is my first post to bigger pockets and appreciate any feedback that I can get.

I have a 4-unit property under contract with subject removal due this Wednesday.

This will be my second BRRRR deal in the particular market.

1. I had an appraisal done and it came back $10k lower than my accepted offer (offer: $120k). This will affect my conventional lending (80%LTV of appraisal)

2. I had a property inspection over the weekend, and some capital projects came up as urgent (0-1year) and were not accounted for in my initial Reno budget.

Capital projects: new roof, exterior stairs, landings and sidewalks, boiler was not operating because of summer so the condition is unknown. There was a laundry list of other safety items that affect my revised budget.

Initial budget: $35k

Revised budget: $70k

Anticipated ARV $175k - $200k

Question:

Is it absurd for me to go back and request a $35k credit on completion when my accepted offer is for only $120k?

Note: I’m in a sellers market where places are going for asking/above asking in short order.

Your support through this is greatly appreciated!

Rich Cedars