All Forum Posts by: Vinod Dasani

@Jeremy HunsbergerIn my experience banks are not worried if its a sole proprietor or partnership.  They simply look at the loan amount and the borrowers ability to pay the mortgage.  If your income, credit score, debt vs income ration is sufficient they will not have any issues lending to you.  However, if the loan\mortgage is large and your income alone isnt sufficient then you will need to bring in partners and they would look at the combined income. 

Yes, I have a sub-meter for electricity on a property.  I was going to do the same for Water but was able to avoid it.  The main tenant (store) gets the bill and then the second tenant pays the store for their part based on the reading.

I would not recommend mentioning that is used to be in the family initially during the conversation.  If they find out then they have a better leverage because they know you wont be going to their competition so they dont have to price it to sell.  They can always ask for a premium.

Without much details its hard to say.  But generally speaking it does sound reasonable for Corporate Tax Preparation and Filing.  Since you are in Texas they will have to also file Franchise Taxes with the State once a year (assuming its a Corporation).  I assume there are no employees so no Employment Taxes will need to be filed quarterly.  Basically, the fees are based on whether or not the CPA also handles the book keeping\reconciliations of accounts and  they number of properties in the corporation.

@Greg Routen - Hello Greg

I do use realtors and have relationships with a few.  Its basically a partnership where they know the properties I am interested in and when they have one that fits the criteria they let me know before posting.  Additionally, when I find deals direct I list them as the realtor so that they can earn a commission (doesn't cost me anything) and in many cases they actually split their commission by contributing part of it towards the closing costs in cases where they didn't have to invest much time.  

@Colleen Carey - Given where interest rates are today and the likely hood of them going up in my opinion its better to get a 30 year fixed interest loan.  You can use the extra cash flow to pay down the loan if you like or you can use the extra cash flow to invest in other properties.  This way you have the low interest rates locked in for 30 years and if you decide to pay it off in 15 years you can still do it.

@Chad Collins - I can use a commercial mortgage broker as I looking to get financing for a deal.  Additionally, if there are any questions you have I will be glad to assist.

That is a negative cash flow property which banks dont like so getting financing maybe a challenge.  Moreover, there are so many positive cash flow deals in the market why would you settle for a negative cash flow deal.  There are situations when a tenant breaks the lease and leases or you have to evict them at which point you will be paying out of pocket for the costs, repairs, cleaning and for the time it sits vacant.  

Yes, you can always ask the listing agent to get you rent rolls, lease info (start\end dates) and the vacancy rate. They may ask you to sign an NDA before they provide you with the information. 

If you need the funds urgently a faster route maybe to get HELOC. Since the properties are paid in full it will be easier to get this vs getting the properties refinanced.