All Forum Posts by: Ronald Rohde

@Justin K.

Your probably put of luck. Me personally I would not pursue it civilly for a few reasons. The amount of time your going to spend to go to court and frustration is going to be close enough or more than the judgement. More importantly is this person going to be collectable? If he works for himself probably not.

You may be better off just reaching out to the contractor's board for possible criminal remedies. In some areas there is a maximum initial amount a contractor can request.

Social media... Doesn't mean a damn thing. He could change his name or business page name anytime and poof all the reviews are gone. Facebook gives businesses an opportunity to verify their legitamecy but most small businesses don't bother. Even if they did most people don't know the difference that little check mark means.

So I'm guessing from the lack of responses that either 1) people don't succeed in this and 2) its a waste of time? 

Hi all,

I'm not sure how to approach this deal and I'd like some guidance.

I found a 10 unit apartment in Hickory that I'm in negotiation to put under contract.

The price we've agreed on is $425,000.00 Seller is not open to creative financing. I've discovered that rents can be raised EASILY from $475 to $650, putting the forced equity at $177,062.00.

Since seller wants to sell conventionally, I'm thinking I'll need to put 25% down, which is $106,250.

Where could I go to find money like that?

Would people JV with someone like me who doesn't have the money to put down? How would I structure a deal like that?

Or is it better to get a hard money loan here?

The exit strategy is over the next 3 years to fix up the units, raise rents, and do a cash-out refinance.

I am a new investor with just one commercial deal under my belt. I am looking to do some House Hacking in the Dallas Area but am having a hard time making the numbers work. Is there a specific area that people have found success house hacking? I am a land developer and work all over DFW, so I'm not tied down to one particular area to live. Any help would be awesome.

Thanks!

@Lou LaMedica, the real estate is in a separate single member LLC. I have a 20 year commercial note on it, with a 7 year balloon at 4.375%. And yes, an SBA loan can be used to purchase owner-occupied commercial real estate.

Hope this helps,

@Ronald Rohde 

Point taken. Would I have saved money paying for a legal review of the contract? Very probably, but not significantly as the slimy PM only had 3 of my properties under management and the deposits did not add up to much. Either way, I'm sure the lawyer would have pointed out the buried language and additional risks. I probably would have learned a thing or two to look out for.

I currently have 6 properties and it's hard with that low quantity to pay for some services vs if I had 20+ properties. Nonetheless, perhaps I need to reconsider going forward a legal review gate for future agreements.