financing historical building renovation - Posted by brennan

Real Estate Investing Real Estate Financing
1

Posted by Max-Va on May 09, 2006 at 23:13:06:

Ed Garcia sent a response. Trust him. Answer the 18 questions and he can get it done if there is a way.

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financing historical building renovation - Posted by brennan

Posted by brennan on May 08, 2006 at 23:30:32:

How can i get financial backing to renovate old , big, solid brick apartment buildings in my neck of the woods? I can do the work and oversee the renovation, I just need financing.

Any Ideas???

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Re: financing historical building renovation - Posted by Ed Garcia

Posted by Ed Garcia on May 09, 2006 at 09:46:42:

Brennan,

What ever you do, don?t give us too much information.

  1. There is no information on the building other then it?s historic, brick, and needs renovation for who knows how much? No numbers such as purchase price, after market value when fixed up, cost to fix up, comps in the area, etc, etc, etc.

  2. Where in the heck is your neck of the woods?

  3. No financial information on yourself to know how financeable you are?

Brennan, here are 18 questions we need to have answered to help you analyze your deal.

We need more information before we can go any further with your deal.
(1) Describe The Units and the surrounding area?
(2) How old are the units?
(3) What’s the unit mix ( how many 1 br. 2 br etc)
(4) What’s the vacancy factor in the area?
(5) What is the gross income of the units?
(6) What is the vacancy of the units?
(7) What is the NOI?
(8) What are market rents in the area?
(9) Are there any other Units in the area for sale?
(10) If so at what Price?
(11) What are the going Cap rates in the area on multiple units?
(12) Have any other Units in the area recently sold?
(13) If so at what price?
(14) How much does the seller owe on the units?
(15) If there is a loan, is it assumable?
(16) Will the seller carry a second?
(17) Is there any differed maintenance?
(18) If so, estimated cost of maintenance?

(19) How’s your credit?

If you answer these questions, then I can answer yours, with a meaningful answer.
Otherwise, it’s just, What ifs? or hypothetical.

Ed Garcia

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Re: financing historical building renovation - Posted by zach

Posted by zach on May 09, 2006 at 24:49:09:

sent you over an email…

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Re: financing historical building renovation - Posted by brennan

Posted by brennan on May 09, 2006 at 22:59:07:

Hello Ed,

Thanks for the response. There are several “historical”, unoccupied, apt buildings here in NYS. I see them every-day, and ask myself how i could get funding to do a renovation project on one of them. In particular:
Example: 3-story brick, built around 1900, first floor retail space, 2nd floor 2 apts, 3rd floor 2 apts., currently unoccupied, located in a growing lake-side community, near an affluent college population, city owns property, listed with a realtor, sity will only accept a purchase offer if it is accompanied by evidence that the buyer has funds and plans to do a complete renovation, building needs extensive renovataion, i have not done a cost-analysis at this point, i know that i do not have enough personal funds to do the renovation, i would need outside funds, i’m just trying to determine if there are funds available for projects like this (private, public, grants, etc) I know that there are old buildings being renovated with public and private grants that dont need to be paid back as long as the investor complys with the requirements of the grant (such as rent-caps, etc). I would like to know how to start presenting this idea to people, and where to even start looking for restoration money.

Thanks You

6

Re: financing historical building renovation - Posted by brennan

Posted by brennan on May 09, 2006 at 23:08:11:

Hi Zach,
Thanks for the response. There are several “historical”, unoccupied, apt buildings here in NYS. I see them every-day, and ask myself how i could get funding to do a renovation project on one of them. In particular:
Example: 3-story brick, built around 1900, first floor retail space, 2nd floor 2 apts, 3rd floor 2 apts., currently unoccupied, located in a growing lake-side community, near an affluent college population, city owns property, listed with a realtor, sity will only accept a purchase offer if it is accompanied by evidence that the buyer has funds and plans to do a complete renovation, building needs extensive renovataion, i have not done a cost-analysis at this point, i know that i do not have enough personal funds to do the renovation, i would need outside funds, i’m just trying to determine if there are funds available for projects like this (private, public, grants, etc) I know that there are old buildings being renovated with public and private grants that dont need to be paid back as long as the investor complys with the requirements of the grant (such as rent-caps, etc). I would like to know how to start presenting this idea to people, and where to even start looking for restoration money.

Thanks You