All Forum Posts by: Alexander Williams

@Jay Hinrichs great advice. I’ll will be sure to clear up the exit plan with the lender. Thanks!

@Rj Lindemann helpful insight!

@Eric Kump thanks!

@Brandon Plombon thanks for the feedback! I will check that with my lender.

Hello BP, I’m currently working on my first portfolio loan and have some questions. Here’s the scenario;

I'm doing a cash out refinance on two properties I currently own and purchasing two new properties all in one portfolio loan. I'm using the equity in the two properties that I own as down payment money for the two new properties. The bank will do 75% LTV for the current properties and requires 20% down on the new properties.

My question/concern is having four properties in one single loan. It makes it very clean cut for paying the mortgage and I’ll be saving on closing costs but is this putting too many eggs in one basket? I have no intentions on ever selling these properties as I’m young and in the building stage but I’m trying to look at this from all angles. If you’ve done this type of loan before what were your concerns?

For context all four properties are duplexes and are around 80-110k in value. They are close in proximity within 15min of each other(upstate NY).

Thanks!

I just recently bought a property that’s a 1 acre lot with 5 mobile homes on it, all currently rented. I don’t own the mobile homes I just charge lot rent. My question is:

1) Will a bank lend (specifically an equity loan or line of credit) on a property of this type?

2) If so, how do they appraise the land? Is it purely based on the monthly income from the mobile homes?

3) I have a lien on it with a private individual. I structured an owner finance, Will this effect my ability to get financing?

I hope I was able to articulate this correctly. Thanks BP members!

Crewin Haynes- Norwich does have a large inventory of multifamily houses. Because of the fact it's a low income area, people can't get approved for mortgages, making it a renters town. The last duplex I bought on an owner finance was in September: Purchase price-58K on a 10 year term with a 4% interest rate. Each side is a 3/1 and brings in $1350 a month for both units.

Nick Rutkowski- I started in RE while active duty in the Marines 3 years ago. I bought a foreclosure in Jacksonville, NC for 35K using a VA loan with almost no money down. It was a great success and I have been doing it part time ever since. How about yourself?

Nick,

I'm glad to see that there ARE other young investors in upstate NY! I found that in my area (Norwich) there isn't a strong buyers market and so seller financing seems to be almost a forced option for sellers. This is beneficial for my wife and I so we can keep our bank financing options open for the future.  I'm defiantly interested in what strategy is working for you and your partner. 

Thanks,

Alex