All Forum Posts by: Charles Carillo

@David Lewis

If you go through a broker, they will charge you a broker fee; this ranges depending on the type of loan and the loan amount, but the higher the loan amount; usually the lower the broker fee percentage. 

@Daniel J Harris

Usually when you purchase a property it is in a LLC for tax purposes (speak to your CPA) not a S Corp. If you are having questions or issues with setting one up; speak to an attorney to have it done correctly. It does not cost that much.

@Christian Rangel

I would start reaching out to local banks and credit unions in your targeted investment area. See which ones lend on your target properties and what loan programs they have available.

In this episode, Monick Halm talks about "Growing Your Real Estate Business to Over 1,000 Units"

Here are some of what you will learn:

- The Wealth Orchard

- The 4 myths of real estate

- Goddess Program

Listen to https://podcasts.apple.com/us/...

Youtube: 

@James Polhemus

I would find a property manager by referral from a local investor that is invested into similar properties and areas as you are. You want to make sure the manager is local and that they are focused on managing properties similar to yours.

@Bill Smith

I would consider accepting the funds and placing the additional funds in a savings account or money market. If you go over budget (very common); you can pull funds from this account without going back to the bank. After the project is complete and rented; you can send the funds back to the bank. The thing with borrowing money is when you really need it; it is difficult to get.

@Matthew Jarosz

Make sure you speak to your accountant and attorney prior to quit claiming the property to a LLC; even if the one owner of the property is the only member of the LLC. There might be a "due on sale" clause in the mortgage.

@Adonis Yancey

The interest rate on a mortgage depends on a number of factors. What type of property is it? What is the term? What is the loan-to-value? Is the loan government backed/insured? What is the credit rating of the borrower? If a commercial property; what is the borrower's experience? Is it a No Doc Loan (no income verification)?

Lenders base fixed rate conventional (15 and 30 year) mortgages off the 10-year treasury. The lender will then have a "spread" that is added to the treasury. Local banks and credit unions will usually base commercial lending off an index. For example; if you were getting a commercial loan in New England; the bank would usually base the interest rate off of the FHL Bank Boston Long-Term Classic Advance Rates: (https://www.fhlbboston.com/fhl...)

Prior to purchasing a property or putting offers in on properties; reach out to a lender or broker and get an idea from them for your specific situation of what you can expect.

@Peter Jindra

I have been investing in multifamily since 2006 and went through the downturn with our rentals (I was self-managing them) and the rents never went down for us. That being said; we did not have any crazy rent increases either (2%-3% maybe) and your insurance and other expenses are consistently increasing each year at a rate higher than that.

I do not think rents will decrease but I would make sure that you are using accurate rental comps when you are setting your rents or underwriting a deal and verifying the rental amounts you are being told are accurate. You want to find comps as similar and as nearby as possible.

@Corey McNabb

It depends on how you are structuring your deals. For small multi-families I would lean towards setting up joint ventures with your family. It is much less expensive to setup with an attorney and since everyone is an active investor; you do not need to deal with the SEC. If you have passive investors; it is now a security and will cost tens of thousands of dollars to setup and is not worth it unless you are raising $500k+.

With joint ventures; usually it is required and recommended (to show everyone is active) that all partners sign on the debt. This might require some convincing on your part but will help with loan approval.

Speak to an attorney before doing anything.