All Forum Posts by: Christen G.

Hi there, 

I am doing a major internal rehab + a roof for the first time - yay! My roofer is having me sign some paperwork and on the Bond paperwork there is this huge, "YOUR PROPERTY MAY BE LIEND" jumping out at me in bold. It also says for additional protection I may request the contractor to provide me with original "lien release" documents from each supplier or subcontractor on your project. 

My question is - other than vetting the roofer/contractor well, how do I protect myself from a lien happening? Is the Lien Release document something I can get pretty easily, or will the roofer supply one if I ask?

Thanks!

It's nice of you to think of your tenant in this way. If you can swallow the $100 without much of a loss, sure, give them a discount. Bigger issue for me are those plumbers leaving a mess...maybe have a chat with them and have them knock off $100 from their bill if you can - or just let them know what they left behind was unacceptable - and they should think about that for future jobs.

I'm sorry you had this experience. I would second the Estoppel Agreement idea that @Anthony Wick suggested and also understand that you're not getting rid of these tenants due to A) the new lease and B) COVID restrictions still in place. If it's a home-run and you want the place then a simple letter to them apologizing for the misunderstanding and recognizing how much of a nuisance it is to have your home traipsed through by investors (especially during a pandemic) is. I would also be upset if I was say, throwing a birthday party for my nephew and strangers came knocking on the door unexpectedly wanting to walk through. As Joe said, these are not "bad tenants" - this seems to be someone justifiably upset at strangers trying to interrupt their life and their home. A sincere apology can go a long way.

Is anyone still using Cozy? I am trying to transition from tenants using checks, money orders, etc... and get everyone paying in one way - Cozy was bought by Apartments .com and the set up is really a slog.

Appreciate it, @JD Martin - my mortgage company is taking their time - but I'm inspired by your rates not going up. My broker is telling me "it probably will a little b/c you're going from no claims to having a claim" - so we'll see. Thank you again.

Thanks, @Tom Harkins - this is helpful. And sorry about your fire! I have hired the contractors and am fortunate enough to have been able to come out of pocket to get them started I'm trying to get this done and re-rented before the winter. Hopefully I won't have to do that 2nd round of authorizations/payees thing - sounds annoying. Thanks again for the insight.

We had a major flood in an upper unit that spread through 2 units and now I'm in the middle of a major insurance claim and subsequent rehab - good times! I've never done this before, so some of the procedures are pretty foreign to me. For example - because of the amount of the first check, they had to physically mail me a check to endorse, then I had to send that to my mortgage company - who also has to sign it and then they're mailing that back to me. The pillar of efficiency!  I understand that this is to ensure that we actually do the rehab and not just pocket the money. My questions are: 

- Should I expect some kind of "final inspection" from either the mortgage or insurance side?

- Is my insurance premium certainly going up now?

Thanks for any insight, tips and encouragement! Some "before" pics below!

I agree with @Cameron Tope and @Drew Sygit - get in there and DIY until you have systems in place that you can hand over to someone. You'll save yourself money, you'll learn how you want your business to run and then when it's time, you can hand it over and set up the person you hire for success. Best of luck!

Hi all,

We're working on re-fing three small multi-families that we're holding that have higher rates and ~$300k in combined equity! In the COVID-19 financing climate locally, we're seeing higher interest rates for investment props and cash out products. We're deciding between:

1) Refi into lower rates and payments (1-1.5% lower) and then getting a HELOC on the equity. Pros: lower base interest rates, lower adjusted monthly payments, lower loan costs, HELOC applications costs are minor, not paying interest until the money is used for that next investment.

2) Cash out refi on all 3 properties - Cons: higher base % rates, higher loan costs, similar monthly payments, Pros: fistfuls of cash to parlay into the next deal

3) 1st Lien HELOC - buy out the current loans balances with a HELOC with 1st lien - Pros: Even lower loan costs ($10-$15k less!), lock in rates on the balance used to pay off the loan, and continued use of 10 years revolving line of credit. Cons: you tell me, I hate the word "lien."

Some questions:

- Are folks having problems getting access to HELOCs right now? I hear these are the first to 'dry up' during 'uncertain times.'

- Is everyone seeing higher rates for investment properties and CASH OUT refis?

- What are concerns with HELOCs if we plan to lock in rates on the $$ used, pay down principle ongoing, and treat it like a loan (with the benefit of a revolving credit line)?

- Why does Cash Out Refi come across on BP as the holy grail with little to no mention of the HELOC method?

Happy to help where I can. A Trailing 12, T12, or TTM, is a financial statement that shows a multifamily property's previous twelve months of operations. It's a common ask when looking at this type of buildings and a reputable seller who ran the building well should have it. If they don't, use 40% (of rents collected) as your expenses line.