All Forum Posts by: Chris Field

Everyone in the islands is a real estate investor and trying to sell a deal. 

Last time I was on Cayman I was dragged to another $5m spec house to have drinks on the back porch as lots were pitched to me. 

Not saying don't get involved, just remember that if only two guys on an island are doing something their is a reason. I'm sure money can be made but I doubt its as easy as it seems.

YMMV

I have a 2015 Ram 1500, sold my last work truck at 10 years and 150k miles, I plan on doing the same with the Ram. 

After the Ram is paid off I'd like to get a toy car, right now my eye is on the Tesla Model S, or a Maserati.

 No one can predict the future but I'm terrible concerned about this as well. I'm paying my mortgages down in the event that interest rates are significantly higher in 5-7 years. 

No way around it though, fixed rate commercial loans are hard to come by.

I find commercial financing to be much easier, I'd just get a commercial loan on all the properties under one company like 24 Unit Main St LLC. The other option is a kaleidoscope of residential mortgages which just sounds awful, residential loans are a PITA to apply for.

If they were in poor shape and this was going to be an extensive rehab and value added deal my bank would structure it as an interest only construction loan for the first 12-18 months. Interest only is nice it keeps the cash outlays low until the rents come in, a million bucks is only like $5k a month.

It depends on what your goals are, but cash flow is king. Cash flow will smooth out the bumps in the road a crash like 2008 will bring.

Every investor has a different strategy, mine is I focus on A areas because I rather have fewer doors that pay me more. Less headache IMHO to have one that pays you $1900 than 4 at $500. 

Hire an eviction attorney and start the process. If the current owner is wiling go to the police and file a report for the threats as well. This will help the eviction process. 

My bank doesn't care what I paid for the land this particular parcel has been in the family since 2007 and has been horse traded around a bit. Most of my family does this, so we trade parcels around once in awhile. They will loan 70% on the land as well, but the value is not their until its approved. As a crappy house its worth $190k, as an approved 15 unit site its worth $600k or so. 

I bought my interest in this piece a couple years ago with a SFH building lot, which I got for almost free. I exchanged about $10k of actual money, and about $30k in approval costs for a 50% ownership position.

Their are probably plenty of deals within a 20 mile circle of you, if you look around you will find them. 

IMHO 30 minutes is my limit. I'd only consider something out of state if the property was large enough to support a full time staff. I'd never consider a SFR by itself that far away.

The parking lot is tired, and its ugly as sin.

OTOH if you know what your doing and have access to some hard money you can buy it, drop a couple hundred thousand into it, and refinance it. Maybe making a nice profit. IDK though the area would have to support it. 

Will the local area support $500 a month per unit? What's the competition look like?

My bank just wants the land paid for and for the project to appraise. They loan 70% of the value of the completed project as a typical construction loan, than after its done it converts to regular mortgage. 

For example the loan I'm doing now:

Finished project value $2,660,000

@ 70% LTV is $1,860,000

I'm putting up the land, this is a very typical structure in my area a lot of rental projects are financed this way.