All Forum Posts by: Taylor Billman

@John Minock The owners got this through a 1031 and have been sitting on it for years. The building is about 120,000 sf and probably built around the same time. Possibly later based on the construction and size of the building. I could imagine not crossing your T's and dotting your I's on an project with environmental remediation can go in a bad direction very fast! There a few programs the project should qualify for that would allow for tax abatement. After talking with some officials, I know the city would love to have this property brought back to life. I'll definitely be talking with them more.  

@Mayer M. The property is in eastern Pennsylvania. We are only in the due diligence stage of this process. Yes, between syndicates, bank, and or government funding we will need to have the Phase I and II done. We would 100% do the Phase I & II under LOI during due diligence. What remediation was needed at your project? This would be the first project we are having to directly deal with a possible issue. Tying to get all of our ducks in a line before we get in too deep.

@Lawrence P. Schnapf  I agree 100% whenever there is an environmental issue with a property and the state will fund or supplement the remediation, its worth going through a little extra red tape! Thanks for the links.

My business partner and I are doing due diligence on an adaptive reuse project.

The building is an old industrial / manufacturing building that has been vacant for years. With zoning changes in the works for residential / commercial mixed use there is a big opportunity.

We will need to have an environmental assessment done. Hopefully just a phase I but don’t doubt a phase II will be needed.

When is the best time to apply for Industries Site Reuse Program? I’m presuming it’s only worth the paperwork and time if a Phase II is required.

Has anyone had experience with ‘Non Prejudicial Approval’ that allows you to start a project before approval and then go back to count the costs incurred?

Thank you!

-Taylor

Investment Info:

Large multi-family (5+ units) commercial investment investment in Muhlenberg.

Purchase price: $195,000

-5 Unit (4 Residential, 1 Commercial + bonus detached 2 car garage with attic)
-Purchased $195,000, 10% down (5% for me, 5% for 50/50 partner )
-$45k in Renovations
-Should Appraise $300K + after renovations are complete

What made you interested in investing in this type of deal?

Commercial Real Estate

How did you find this deal and how did you negotiate it?

Driving for dollars & cold calling

How did you finance this deal?

PML

@Dennis M. Great insight to this option! I’ll check out Wendy’s program

@JD Martin thank you I’ll reach out!

@Marc Winter Great advice, thank you! 

@Corby Goade I already cash out refied the townhouse so I could get the Single Family. Only about 20-30% of equity left in the townhouse. Selling the townhouse and getting the 5 unit would increase monthly NET cash flow from $300 (townhouse)  --> $1500 (5 unit). My thought is I'll be able to grow my portfolio quicker with the 5 unit cash flow.

The rent to own situation is attractive because of the mortgage pay down, option fee, and net cash flow. 

@Corby Goade Yes it would cover mortgage and still cash flow. I'll still be looking to continue with multi-family either way, selling the townhouse would give me the capital I need for a down payment on a 5 unit I'm interested in.