All Forum Posts by: Yoseph Kalman

bump

Is there such thing as 'subject to'  or other creative financing option when purchasing a property from a seller who acquired the property with a hard money loan? In other words... If I found a property that is currently owned by another investor who purchased the property with a hard money loan to fix it up would I be able to purchase the property from them with a 'subject to' where I would take over the hard money loan payments or use any other creative financing mechanism to purchase the property?  

Hey guys, I'm a first time investor sill learning the ropes and building my rolodex. 

I found what appears to be an interesting investment property for my first deal. Its an 8 unit apartment building (all 2 br) that has plenty of upside through some updating and increasing the occupancy. 4 units have been renovated  2 of which are rented out and  2 more are rent ready, 2 more are mid reno and the last 2 are vacant and vintage- still needs some reno work. The asking price is 250k. I anticipate the property needing about 50k to finish the remaining amount of light reno work required to make the rest of the building rent ready.  In the neighborhood in which the building is located rents are right around $900/mo.  I looked over the previous owners expense reports and determined that my (pro-forma) NOI would be $62,483 once occupancy is 100%. The rental market is pretty good in the area and I dont anticipate having a hard time finding tenants. Looking over all the numbers this looks property has solid potential and can be acquired for a bargain so my questions are:

1- Who would you recommend ,in the Chicago market, we approach for a small commercial loan (200-250k) with decent terms? I have about $75k cash to put down.

2- Do you think I will have a hard time obtaining a loan with the building being in its current condition? The building is mostly vacant and mid reno and therefor shows a poor financial history over the last number of years. 

3) what sort of loan would you recommend we look for? 

Any general financing advice you all can offer would be welcomed. 

Thanks