All Forum Posts by: Adam Craig

All of my properties are currently set up to pay tax/insurance through escrow.

My new portfolio lender who does commercial loans said they typically don't do escrow on the commercial side but they can do it if needed. He made is sound like its not what they want to do but would.

I have 12 properties and for me, escrow is easier with 1 monthly payment. 

What is involved paying tax/insurance on my own, specifically taxes. I know they are due every 6 months, will I get a notice in the mail when they are due? Can I set up up as a monthly payment instead?

Not sure how much more leg work it will be without escrow....

 Just for the sake of using too many numbers I factored that in. But yes my portfolio lender only does 80% which I think is a good thing

 Thanks for the invite. I have basketball league tonight but do you guys meet up on the regular?

I am starting to do some cash out refinance deals on several of my rentals.

After I hit my 10 mortgage maximum, I found a portfolio lender with 20 year / 5 year ARM loans. The loan process was so much quicker. Now that I have a relationship with this bank the refinance was fast and easy - much easier then Fannie/Freddie loans.

So my concern is that with my portfolio lender - I am refinancing some of my 30 year fixed rate conventional loans into a 20 year 5 ARM loan. Is trading 30 year fixed for 20 year adjustable something to be concerned about?

That is similar to the way I think - just good to get confirmation. Thanks!

 I has a second business that generates a good income and I have saved all that money and invested into real estate. Then I have used those investments to finance additional investments.

Quick background - I am 27 years old. I own 10 single family homes in the Cleveland suburb market and have a second business outside of real estate that generates most of my income/cash flow.

I recently got approved for a cash out refi on 2 of my properties with my portfolio lender. 

The numbers for each are:

Appraisal:  130 / 115

Loan Balance: 37 / 44

Available Equity : 93 / 71

Total cash available : 164K

I plan to take 100% of the cash to invest in additional properties and my SEP IRA.

So how much equity would you take? I dont plan on retiring for 30+ years and the Cleveland market didn't gone gangbusters like some other markets so I dont think declining prices should be much of a factor.  How greedy should I get?

After buying 12 single family homes - I have come to think the sooner I transition to apartment buildings the better. Economies of scale and bigger numbers make apartments seem more appetizing.

I have a commercial lender lined up who lends 80% LTV.

Its the 20% and the rehab costs I am confused on. Is it common to request seller financing on 15% of the remaining 20%?  What would be some example financing terms so I can run some numbers on seller financing.

I have a nice income and a solid bank roll from 2 businesses - but I hear read about investors who have close to zero skin in some of these deals and that sounds better :) - how common is it? Who lends on rehab costs?

I am somewhat new to the commercial terms. My lender is offering a commercial loan at...

4.25% with a five year fixed rate with a 20 year amortization and a 20 year term.

Just to confirm, this means the loan can have the rate adjusted in 5 years - does this mean they will defiantly adjust the rate or just that they have the option.

Thanks

Right now I have 10 rental properties - each with 30-50% equity. I am in the Cleveland suburb market so home prices are defiantly not overvalued like some markets.

In terms of maximizing returns on available funds, is it always a good idea to pull out equity to reinvest? I do have time on my side (27 years old). Seems like refinancing around 5% is a good deal all day long because I can reinvest with a much better return.

I understand lenders will only do 80% LTV. What kind of other costs/pitfalls should I be concerned with.