Comments on: Financing a Fourplex Real Estate Investment Property http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/ Learn, Network, Invest Sat, 11 Feb 2012 01:23:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: mr karnatakahttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-76715 mr karnataka Tue, 29 Dec 2009 07:22:47 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-76715 Troy......I do agree with Dennis, eventhough the 4plex loans falls under housing loan it has to be owner occupied to avail the good interest rates. For investment properties the loan rates are different and once it's under LLC you know the rest.......do you have any recommendations on this? Troy……I do agree with Dennis, eventhough the 4plex loans falls under housing loan it has to be owner occupied to avail the good interest rates. For investment properties the loan rates are different and once it’s under LLC you know the rest…….do you have any recommendations on this?

]]> By: Dennishttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-76495 Dennis Mon, 21 Dec 2009 13:51:08 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-76495 The premise of the above article is a good one, triplexes and duplexes are my main investment vehicle. But there is one glaring error. I have an 829 credit score, 30% or more to put down (I could pay all cash), my track record of management is impeccable (and profitable).The error? I have not found a lender who will finance any investment property with conventional terms, i.e. 15 year, fixed rated of interest. Currently I am paying 7 3/4% until 2013 and then who knows?If I could get a fixed rate, for 15 years I would retire from my trade (contracting) and go on a buying binge. The premise of the above article is a good one, triplexes and duplexes are my main investment vehicle.
But there is one glaring error. I have an 829 credit score, 30% or more to put down (I could pay all cash), my track record of management is impeccable (and profitable).

The error? I have not found a lender who will finance any investment property with conventional terms, i.e. 15 year, fixed rated of interest. Currently I am paying 7 3/4% until 2013 and then who knows?

If I could get a fixed rate, for 15 years I would retire from my trade (contracting) and go on a buying binge.

]]> By: Donaldhttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-66374 Donald Sat, 20 Jun 2009 07:59:25 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-66374 Mr. Schuricht Fourplex sounds great but what advise could you give to one that been through a divorce,left with "BIG" debt problem, bad credit and simple no money to invest in real estate at this moment? What programs are available? Sincerely, Don Mr. Schuricht
Fourplex sounds great but what advise could you give to one that been through a divorce,left with “BIG” debt problem, bad credit and simple no money to invest in real estate at this moment?
What programs are available?
Sincerely,
Don

]]> By: Investment Property - Cape Codhttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-57135 Investment Property - Cape Cod Fri, 30 May 2008 18:28:02 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-57135 Susan,That is exactly what I used to teach investors to do when I was doing loans. Find a distressed multi-unit and get a hard money loan....fix it up and refi into a normal loan 6 months down the road with a LTV they can afford or one where they will need 0 additional down payment. Multi-units in Cape Cod are going like hot cakes right now. Susan,

That is exactly what I used to teach investors to do when I was doing loans. Find a distressed multi-unit and get a hard money loan….fix it up and refi into a normal loan 6 months down the road with a LTV they can afford or one where they will need 0 additional down payment. Multi-units in Cape Cod are going like hot cakes right now.

]]> By: Susan Lassiter-Lyonshttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55790 Susan Lassiter-Lyons Sat, 05 Apr 2008 18:19:27 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55790 I think most of us can agree that residential multiunits are hot right now. ESPECIALLY because of the market turndown. I like them because of cash flow and as a hedge against vacancy losses. If I have a single family home and someone moves I have 100% vacancy. If I have a 4-unit and someone moves out I have 25% vacancy.The issue is always the downpayment for investors. We are taught to use LEVERAGE in investing. And who wants to tie up 30% of their own cash in one property?We teach our clients to buy distressed multiunits using a private rehab loan. If you get a loan for 70% of the ARV, then your deal should be good enough to roll in 100% of the purchase price, 100% of the repairs and 100% of the closing costs. Once the work is complete, do a rate and term refi into permanent financing. Voila - a 100% deal. And yes, still available and happening in 2008! I think most of us can agree that residential multiunits are hot right now. ESPECIALLY because of the market turndown. I like them because of cash flow and as a hedge against vacancy losses. If I have a single family home and someone moves I have 100% vacancy. If I have a 4-unit and someone moves out I have 25% vacancy.

The issue is always the downpayment for investors. We are taught to use LEVERAGE in investing. And who wants to tie up 30% of their own cash in one property?

We teach our clients to buy distressed multiunits using a private rehab loan. If you get a loan for 70% of the ARV, then your deal should be good enough to roll in 100% of the purchase price, 100% of the repairs and 100% of the closing costs. Once the work is complete, do a rate and term refi into permanent financing. Voila – a 100% deal. And yes, still available and happening in 2008!

]]> By: Jackhttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55643 Jack Sun, 30 Mar 2008 04:26:07 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55643 this is an interesting topic, i wonder if or how things have changed w/the recent real estate down turn. Is now a great time to invest in Forplex Real Estate?I'd wanna wait to see just how things turn out this is an interesting topic, i wonder if or how things have changed w/the recent real estate down turn. Is now a great time to invest in Forplex Real Estate?

I’d wanna wait to see just how things turn out

]]> By: Lilahhttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55644 Lilah Sun, 30 Mar 2008 03:31:18 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55644 maybe it would be a great idea to invest in foreclosed fixer uppers this time. I'm sure you can get great deals on this....THere is a great game called <a href="http://crazyrealtor.com/2008/02/28/flip-house-real-estate-cashflow-game" rel="nofollow"> Flip That House Real Estate Cashflow Game</a>. While it's about flipping homes, i'm sure it can also teach pple about flipping duplexes or foreplexes...fact of the matter is there are probably great deals out there if you wanna look. maybe it would be a great idea to invest in foreclosed fixer uppers this time. I’m sure you can get great deals on this….

THere is a great game called Flip That House Real Estate Cashflow Game. While it’s about flipping homes, i’m sure it can also teach pple about flipping duplexes or foreplexes…

fact of the matter is there are probably great deals out there if you wanna look.

]]> By: A.B.http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55572 A.B. Wed, 26 Mar 2008 07:06:22 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55572 Hm, interesting... I enjoyed your article content! How about interest-only financing or 3-1 ARMS for short-term property flips? Cash-flow can be increased with this type of financing and if the market is on the rise, this could free up some short-term cash flow. What do you think?Regards,A.B. Hm, interesting… I enjoyed your article content! How about interest-only financing or 3-1 ARMS for short-term property flips? Cash-flow can be increased with this type of financing and if the market is on the rise, this could free up some short-term cash flow. What do you think?

Regards,

A.B.

]]> By: Extensive Enterpriseshttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55561 Extensive Enterprises Tue, 25 Mar 2008 17:16:35 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55561 For those of you who are interested in getting started below $400,000 (which is a ridiculous average--lovely, yes, but ridiculous nonetheless), I would suggest one of two options: 1) Low-income areas (trade-offs occur, of course), 2) Talk to someone who will offer seller financing. I am currently selling a 4-unit in Amherst, NY (an upscale suburb of Buffalo, NY) for much less than $400,000, and I only require 10% down and I finance the rest. It is easy, but have a good lawyer who will draw up the papers for you. Good luck investing. For those of you who are interested in getting started below $400,000 (which is a ridiculous average–lovely, yes, but ridiculous nonetheless), I would suggest one of two options: 1) Low-income areas (trade-offs occur, of course), 2) Talk to someone who will offer seller financing. I am currently selling a 4-unit in Amherst, NY (an upscale suburb of Buffalo, NY) for much less than $400,000, and I only require 10% down and I finance the rest. It is easy, but have a good lawyer who will draw up the papers for you. Good luck investing.

]]> By: investment propertyhttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55550 investment property Tue, 25 Mar 2008 11:12:50 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55550 it gives a great information and wisdom about the multi unit investment properties and the way the goal is reached in this task.and also you can gather the information about down payment and self-employment. it gives a great information and wisdom about the multi unit investment properties and the way the goal is reached in this task.and also you can gather the information about down payment and self-employment.

]]> By: Ray Randallhttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55493 Ray Randall Sat, 22 Mar 2008 01:54:22 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55493 Sometimes investors stumble when making investment decisions. Every investment option requires information, discernment, and wisdom. Current events demand the keen wit that avoids a misstep, yet acts boldly when the circumstance and the opportunity present themselves. Real estate, when resources permit, makes sense. Sometimes investors stumble when making investment decisions. Every investment option requires information, discernment, and wisdom. Current events demand the keen wit that avoids a misstep, yet acts boldly when the circumstance and the opportunity present themselves. Real estate, when resources permit, makes sense.

]]> By: Will Barnardhttp://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55267 Will Barnard Fri, 14 Mar 2008 17:10:27 +0000 http://www.biggerpockets.com/renewsblog/2008/03/13/financing-a-four-plex/#comment-55267 Multi-family units are the best way to invest particularly right now. Prices are low (which is when you want to be buying) and a good investment can generate tons of cash flow. I love the self-directed IRA investing method and teach this nationwide every month. Although it is true that 30% down min. is required with SDI investments due to non-recourse loan requirements, there are several other creative startegies to use to avoid coming up with large down payments as mentioned in the post. I have 4-plex units available (NEW) in TX which cash flow and I can show investors how to get in with 10% down and sometimes less! I also have great duplex units (new) that cash flow $400 per month with only a $15k investment and others with 100% financing. . Keep up with the great pots! Multi-family units are the best way to invest particularly right now. Prices are low (which is when you want to be buying) and a good investment can generate tons of cash flow. I love the self-directed IRA investing method and teach this nationwide every month. Although it is true that 30% down min. is required with SDI investments due to non-recourse loan requirements, there are several other creative startegies to use to avoid coming up with large down payments as mentioned in the post. I have 4-plex units available (NEW) in TX which cash flow and I can show investors how to get in with 10% down and sometimes less! I also have great duplex units (new) that cash flow $400 per month with only a $15k investment and others with 100% financing.
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Keep up with the great pots!

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