hard money lending in new york

[Conor Duffin]

Hi bp gang!

found an awesome investment opportunity in the new york area. multifamily 3 over 1. It's a little risky because I've been furloughed with the virus, but i was thinking of pulling a hard money loan ( refinancing after 6-12 months ) and getting the remaining 25% from a private lender.

this is my first real estate investment.

is my strategy logical ? and if so what hard money lenders do you recommend ?

risky but without risk can one achieve reward ?

appreciate all input.

best,

conor

[Joe Jor]

@Conor Duffin

I can't speak to the HML side, as that is not my area of expertise. I am do "buy and hold" in Westchester.

As @Jason Meadows and @Scott Wolf alluded to, I don't think the numbers work after you get out of the HML. The break even point that I calculated was $6770; nearly identical to Jason's. The breakdown is below, hopefully, that will help you identify where the numbers are diverging. Monthly Cost breakdown:

Mortgage: $1900 (assumes 500,000 with 25% down as it is not owner occupied, 4.5% rate)

Taxes: $1169 (Spit-balled for lower Westchester as I don't know what town this is)

Insurance: $251

Heat: $300 (gas, I don't have oil numbers and frequently the tenant(s) don't pay this)

Water: $100 (frequently, the tenant(s) don't pay this)

CapEx/Vacancy/Repair/PM: $3050 (your number; should be adjusted for possibly higher rent required: think PM cost)

As always best of luck and I hope your first deal works, but be sure to go into it with eyes wide open.  As the carpenter says: "measure twice, cut once."

Joe