All Forum Posts by: Charles Carillo

@Jacob Willett

DM ME. I will send you a process list.

@Besim Osmani

The type of financing that will fit your circumstances best depends on the type of property and what your goals are with the property. If you have a small commercial apartment building and want to keep it for a few years; a 5 year term loan from a local bank or credit union might work for you. If you have a single family house and you want to keep it for 15+ years; finding a lender that will do long term mortgages on single family properties is what you are going to need.

I would not pay for an appraisal prior to speaking to the bank since they are going to do their own appraisal. Depending on if the property is residential or commercial; you should be able to figure out a ballpark value pretty easily. You can then subtract 5%-10% of that to get an idea of what the bank appraisal will come back at.

@Steve H.

A partner of mine is a foreign investor in US real estate. If you need the names of accountants that work with foreign investors, please DM ME.

@Rieanna Martinelli

Find a good eviction attorney in your area. It costs money but what are your other options? This tenant is not going to leave and what you have been doing is not effective. If you are serious about getting them out; I would not mess around with sending letters and listening to stories. Hire an eviction attorney that deals with this all day long and get them served. Even if you put the attorney fees on a credit card and pay them off when you sell the property.

@Account Closed

The debt-to-income ratio is commonly used when people are purchasing 1-4 unit properties where the underwriting is mostly performed on the borrower, not the property. Once you start venturing into 5+ multifamily properties, they are considered commercial properties and the loan underwriting is focused more on the property and less on the borrower. Yes, they want to see a good credit score and your tax returns but the property is what they are really evaluating along with the real estate investment experience of the borrower.

@James LaFarr

Typically, reserves of $250-$350 per unit, per year are held for future capex items (roof, parking lots, updates etc.). This does not include the money you will spend on repairs and maintenance for normal repairs. If your property is in tough shape or is older; I would increase this reserve, but this is a rough calculation for a property that is in good condition, not in need of major capex.

You can also increase this annually or do it on a monthly basis; i.e. $25 per unit, per month goes into a savings account and I will increase that x% per year. 

@Matt Parker

What you are describing is a wraparound mortgage or a "wrap". You can read online how it is designed and then I would talk to the seller to see if they would be interested in this type of seller financing. If they are interested, I would then speak to your attorney to get the details of how it would be designed etc. but I don't want to pay an attorney before getting some sort of verbal confirmation that a wrap is something they would consider.

@Rafael Correa

I would suggest having him as just a lender on the projects with his own LLC. An attorney will draw up the mortgages and it keeps it clean. It also allows you to edit the terms per deal as well. Maybe you need 95% LTC on one deal and 70% LTC on the next one etc. Maybe you want to pay interest when you sell and on some deals you will pay internet monthly (for a lower rate)...many possibilities.

@Sergio Moratto

The goal when you refinance is that the property also cash flows. You do not have refinance every penny out of the property either. There is nothing wrong with leaving some of your initial investment in the property when you refinance but of course the goal is to pull as much money out of the property so you can reinvest it while still having a cash flowing asset.

@Sarah 'Sadika' J.

It depends on how the house is setup for heat currently. I have some 3 families where the 1st floor is hot air; second floor is hot water and the third is hot air again. I have another one with hot air on all floors.

I would speak to a hvac contractor and see what would be the most beneficial way of doing it. If you go the natural gas route, you want to make sure there are meters there for all floors or you need to call the natural gas company. Putting electric heat in is inexpensive for you; but expensive for the tenant.