All Forum Posts by: Russell Peden

Thanks everyone for the quick feedback!

As mentioned, this will be my first commercial loan and multi-family property. So some of the terminologies are a bit foreign. For example, what does DSCR, GSI mean? I think NOI means "Net Operating Income", right?

Also, here are the financials from the agent on the property;

Originally listed for $249,000

Now Reduced to $239,000!

Current Rents
Unit 1 $400-Studio
Unit 2 $465-1 Bed-Same tenant since 2010.
Unit 3 $475-1 Bed-Same tenant since 2013
Unit 4 $475- 1 Bed-Same tenant since 2006
Unit 5 $475- 1 Bed-Same tenant since 2006
Unit 6 Vacant- Rent Ready-1 Bed-Being advertised at $550

Building Features
New hallway carpet-2015
Vinyl windows installed in every unit over the last 10 years
All new tuck pointing done in the last 10 years
Roof was redone 10 years ago and touched up in the last 90 days

He also sent me 2013, 2014, and 2015 Schedule E's

TheAgent/ Management company that currently manages the property also manages several other buildings and properties on the street and near by, says the current rents are low, and could easily command:

Projected Rents
Unit 1 $395-Studio
Unit 2 $550-1 Bed
Unit 3 $550-1 Bed
Unit 4 $550- 1 Bed
Unit 5 $550- 1 Bed
Unit 6 $550- 1 Bed

@Salvatore Lentini the asking price is $239,000. I have $50K to use as a down payment. My Fico is 760

Hey All,

I'm looking at a deal on a 6-unit building. When I contacted the agent about putting an offer on it, he said "...sure, just provide me proof of funds or a Pre-Qualification from a Commercial lender"

I had planned on using the lender I currently use for my other income properties. But they informed me they could only qualify for me for up to 4-units.

So this is my first experience trying to secure commercial funding for deal.

Is there anything I need to be aware of, or looking out for? 

How much different is it than residential lending?

I always thought that commercial lenders were primarily concerned with the property financials, as opposed to your personal financials ( ie; Fico, Debt ratio, etc). Is that correct?

Thanks in advance for your input, suggestions, and experiences.

~Russell

@Maleik Redwine  I live in methe Hampton Roads area. Actually Yorktown. Let's connect!

I'll tell you I've learned so much about RE investing by reading and listening & learning.

Brian Tracy says if you want to be in the Top 5% of Income Earners in your job, company or industry. Do these 3 things...

1. Read 30 minutes Everyday to good book 

2. Listen 30 minutes Everyday to an audio, (CD, cassette, podcast etc)

3. Attend One class each quarter (4 times yearly)

Do these 3 things for 5 years, and you'll find yourself in the Top 5% whatever industry you're in. Try it!

So what should you read? You've already been given great books to start with here from BP.

Listen to the BP podcast. Or my favorite is @Jason Hartman's Creating Wealth podcast! I've learned more from his podcast than the $1000's of $$ I've spent on Seminars.

Attend Webinars and Live Events you'll hear about here on BP and the podcasts listed above.

Good Luck

~Russell 

I just listened to an excellent podcast episode on @Jason Hartman's Creating Wealth podcast where Jason interviews a panel of self-managing landlords, and they talk extensively about tenant-proofing your property. Similar ideas...vinyl plank flooring, better screening. Plus some great resources for remote self-management.

I believe it was episode 729 or 731 (I hope it's okay to post that here...?!?!)

@Jess G. Thank you so much for your post. I was very helpful. I appreciate the info.

Most of it we were already aware. Thanks for the tip about not being afraid to bargain! I'm sure that will be very helpful.

We love Ajijic! We have decided that is where we will ultimately retire in about 5 years. It is a wonderful community. We agree with everything you said in you view on Ajijic.

We decided to take an "exploratory trip" to Ajijic this past January, to see if we could "see ourselves living there". We feel in love! Everything about was just as we had hoped. In fact, we're going back at the end of November for 10 days, and we're taking our 4 kids with us to how they like it.

Of course I have lots of questions for you. I'm not sure if this is the place to ask those questions(I'm fairly new to BP). So how do you recommend we continue this conversation? Am I allowed to post my email address here in this forum?

Please advise.

Thanks in advance for all your assistance.

Enthusiastically, 

~Russell

Hey Gary, I live in Yorktown,VA. Not far from you I'd love to connect and mastermind some RE ideas. I've owned income property in the past, and learned a lot of lessons. I starting over again with a long term goal of 100 units, and a short term (5years) of 10 units.

Look forward to getting to know you and learning more about what you do and your goals

@Mindy Jensen Yep I figured it out. I tried it with a different browser(Safari).

Thanks!

@Mindy Jensen yes I do still need help.I was trying to change my profile picture. That's when I had the challenge. 

I'm having the same issue. I got to my profile. Click on the big blue upload picture button, select my pic from my computer. And nothing happens...??