All Forum Posts by: Brian Cerezo

@Greg Scott yeah makes me want to stick with what I know with single families but… I keep wanting atleast one but I also don’t want that one to be a money pit I could have avoided 😅

Quote from @Greg Scott:

There is nothing wrong with this strategy, but I have concerns with some of your tactics.

The key part I don't like about your plan is your "hope" the appraisal is strong.  Hope is not a formula for success.  If you were using a mortgage to buy this, the lender would require an appraisal and you would know in advance if it made sense to move forward.  

To ensure you have a deal, get an appraisal immediately.  Let's say you got under contract for $150K but your appraisal comes back at $100K.  It would be better to walk away and leave the earnest money behind than buy and immediately lose $50K in equity.  Replace "hope" with "facts".  There is a cost for doing that, but it is much cheaper in the long run.

Related to that, interest payments are just a cost of doing business. If your business plan is solid, that should be no big deal.

So it’s not a hope. Just the comps around the area aren’t really there. I haven’t seen many duplexes in this area and the few I see range from 80-120k. The current rents are 535/month so overall 1070. If stabilized they are closer to 750/unit .

my plan would be to offer 80k cash. Take it or leave it. Of course still do my inspections and due diligence. So I feel like no matter what I should be ok. I either get all my money back with the higher appraisal and if the appraisal is on the lower end. I’m just stuck with option 2 pretty much 

Thanks! I appreciate the reply! Def leaning towards 1

Hey everyone!

I just got a heloc on my primary residence of 150k. For the first year the rate is locked at 2.99% then of course goes to prime after.

I’m thinking of putting a cash offer on a duplex which I can potentially get at a discount if it’s a cash offer. Then immediately after I would go to one of the lenders I work with for a cash out refi with hopes the appraisal is as good as I believe it to be. The property is pretty much turnkey so I doubt I’d fix anything big and is currently rented out below market.

Just wanted to know your thoughts on going this route of buying outright to refi, or just buying with a 20-25% down using the heloc and just have a mortgage on the property. (Only reason why I’m not fond of this is having to pay the interest on the heloc and the mortgage)

Thanks y’all!

@Zachary Inman I’ve made most of my money that I’ve put into buying real estate from crypto. Money is definitely to be made. Just with any new industry/asset … there’s going to be huge ups and downs and a lot will fail.

I’m big into crypto but not to a point where I think it’s the best asset

I’d love to hear more 

Quote from @Nick Belsky:

@Brian Cerezo

Interesting.  I've not run into this at all.  Find a national lender, doesn't need to be hard money at all.  They will work with you all over the country so long as you have the liquidity.

Plenty of folks investing in Ohio right now.

When you say commercial, are we talking 5+ Unit multifamily here or a portfolio of 1-4 unit rentals?  Two different animals.

Cheers!

1-4 unit. I was probably calling banks that are too small. I want to start buying properties into my LLC and land trusts.

I could continue to do residential mortgages for the better rates and quit claim them into my LLC. But at the same time I want to build my business credit up faster. Does that make sense? 

Quote from @Joseph Coleman:

Hi  @Brian Cerezo

There are about 8 pages of lenders in the BiggerPockets Hard Money Lending Directory listed in Ohio - link. 

Most of these lenders offer commercial loans for non-owner occupied properties. Some offer many different types of loans and others only do Fix and Flip or short term loans. 

 Thanks so much. New to the forum, I appreciate the help a lot!

Quote from @Andrew Garcia:

Hi @Brian Cerezo, I would be happy to refer a lender that can help you with this scenario.

Let's get connected! Always happy to help.

Yes please refer!

Hey y'all! Hopefully everyone is doing well in this market! I have a question for you guys. So I've been putting my rentals under my personal name and now I felt it is time to LLC the business and start scaling a bit faster… but now comes my speed bump I've run into.

Everyone has been telling me go to the small local banks to get the best rates and terms and a cash out refinance. I currently live in NY and invest in OH. All the small community banks said they only work with locals.

Does anyone have and recommendations for banks that do commercial lending in the Ohio area specific Toledo and Canton area?

Thanks,

Brian