All Forum Posts by: Rich Somers

@David Miller

The purchase price of this 5 unit is cheaper than my 1 bedroom condo cost in San Diego. I don’t see why I would need to partner for such a small deal like this? If I partnered on this deal there wouldn’t be enough skin in the game to be worth my time. Yes it’s my first deal, but it’s also a very small low risk deal.

 Republic Bank

If needed, we can probably push back close a week or two allowing us 45 days.   

The property is in Louisville, Ky. 

The underwriting team of a local bank I was working with in Louisville just gave me a "No" for a small balance commercial loan for a 5 unit that I currently have under contract. Unfortunately it took them 4 weeks to give me an answer. I have excellent credit, 10 years of strong W-2 income at my government job, a really low DTI ratio, and a healthy balance of cash reserves. Apparently this bank has very strict guidelines for out of state investors and since this is my first deal they weren't willing to take on that risk. They told me if I lived in Kentucky it would be an easy yes. I'm not used to getting a "no" in terms of financing anything, I now understand why having that first deal under your belt for any new investor is so valuable in terms of credibility moving forward. Anyways, the good news is: we are past the inspection contingency and still have 33 days left till close. If anyone can refer me to any good local or non local commercial lenders that wouldn't mind working with an out of state investor like myself, and can move fast, I would much appreciate any referrals.

Thanks in advance! 

I'm looking for a really good investor friendly CPA, and also a real estate attorney here in San Diego.  Any referrals would be much appreciated!  

Thanks for all the advice guys. I couldn’t agree more in regards to being totally transparent and honest. So to clear things up: I would be able to raise the capital privately to pay all cash for the condo but then I would have to pull out a mortgage after close to pay back that money. I found the podcast where they touched on this: it's actually a podcast guest and David Greene mentioned he does it all the time too. Basically he writes an all cash offer, and also writes an addendum which states: I have the cash available to buy this home, however I might use a private loan or a bank loan to purchase it, but it won't affect the seller at all. These offers are also with no inspection contingencies.

Anyways, the unit i saw yesterday was an awesome high rise condo in Little Italy (trendy neighborhood downtown) with an ocean view. The listing agent said they had an all cash offer $20K over ask which was more than I was willing to pay so I passed and seller accepted the offer.

I also reached out to my commercial lender and told him my intentions, he said to hold off till we get a little further in the loan process. Since this is my first commercial loan, and although my LLC will be on the loan documents, it is a recoarse loan and im personally guaranteeing it with my W2 income and credit score. So I'll be patient and wait for another condo until he gives me the green light. There will be much more inventory to choose from in the upcoming spring and summer months so waiting will actually be the logical thing.

Anyways thanks again for all your advice guys!

So I have a personal accout with navy federal, and they offer some very low down, low interest rate terms for owner occupied loans. I want to rent out my condo in downtown San Diego and purchase another downtown condo to live in. I want to write an offer on a unit i saw today that has multiple offers, I’ve heard Brandon Turner on one of his podcasts mention writing all cash in his offers, but then using lender financing instead. How can I word this in the offer to make mine stand out and look stronger than others, but then use lender financing to get it done? I know i want this unit for sure and i know i can get the lending no problem. Something to note: I am also in contract on a commercial property in Louisville at the moment, this will be my first commercial loan, and we’re set to close May 6th. Should I give my commercial lender a heads up I’m going to purchase a second condo or do you think it’s better if they don’t know?

Hey guys, I'm a new investor as well and I live in San Diego.  I currently have my first deal under contract, its a 5 unit in Old Louisville.  I will be back out there March 18-20 for inspections.  I would like to set up a casual meet up for happy hour on either the 18th or 19th if anyone is interested.  I am looking to connect and make new friends with other investors in the area...let me know if anyone is interested! 

I'm in currently in contract on a 5 unit multi family and my inspection is scheduled for next week.  I'm going to walk a few contractors through to bid the rehab (mostly cosmetic stuff for the existing units).  One of the things I also want to do is clean out the basement, run plumbing and electrical to it in order to utilize some coin operated laundry.  The building is 100 + years old, and has a raised foundation...I'm sure there is moisture down there.  Question is this:  Since I'm already running plumbing and electrical down there, what are the odds I can legally and safely add a couple livable units down there?  What kinds of things would I need to know prior to determining this?  

Thanks guys, I look forward to hearing your responses!