All Forum Posts by: Chi Cheung

There are lenders who will lend to LLCs but still make you personally liable for the mortgage. You also need good personal credit. Rate that I got a few months ago was 7.25% for 30 loan. Let me know if you want the contact info.

 Good luck with your search!

Interest rate is clearly defined on the note, and in most cases are fixed. While cap rate is anticipated. It would be wise to have a little cushion in case unexpected expenses pop up and lower your cap rate.

If you were to invest the money, what is your expected cap rate?

Like Mark says, Zillow has no way of knowing the condition of your house, so it just uses comps from neighboring sales and square footage for its estimates. But here's the kicker: this is the same approach that most appraisers use. 

So don't use it as the holy grail, but it does give you a good idea of the average sales price for the given property.

@Andy Sturm

CAP rate is probably more pertinent for apartment buildings as it takes expenses into consideration.

@Sean Connolly

What's the tax penalty for cashing out your IRA?

@Eldar M. Check out the Download section on this page: http://www.kellerink.com/mrei

Chi

@Simo Hak do tenants or landlords pay for water & sewer in Louisville?

Hi Daria,

1-4 units are usually considered residential.

This might have been a commercial loan. I think mortgage companies state this in the lien to make it easier to foreclose on the property in case the borrower does not pay. This is why some hard money lenders require the title of the house to be held in an LLC.

Chi