All Forum Posts by: Manny Cirino

I would put the ARV closer to $125k - $130k. Waterbury is an acquired taste for most people. Although it's hard to tell the condition of the property. But I agree that it would be a better buy and hold investment. Even at $150k your profit margain is to tight one miss step should eat up your profit. Also you closing cost are low you have cost at buy and sell.

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Yes, monster sounds about right. I live in New Britain and can tell you that the base board heaters in those old @%$ buildings suck. Maybe not so much the heater but the draft the creeps in makes them worthless.

You have all the right to be concened about the violations, but I think you're out of line and being extremely judgemental assuming what programs they may or may not be on. And suggesting someone put there parent in a nursing home is not your place remember some cultures just don't believe in that.

It seems as if you may be going about address them the wrong way. If you are coming at these people the way you write your post good luck getting them to comply.

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Hartford, Connecticut

Originally posted by @Lupe Camacho:

Hi!

I'm about to apply for a mortgage with several lenders to shop the best rates. However, I started in on the first application and have to select either single or multifamily. I'm open to both at this point and it's more of a question of what's available and what the numbers look like.

If it's a SFH I'm open to house hacking, but in a perfect world I'd get a multifamily. Should I just choose multifamily on the application? Are the rates similar? Should I ask for rates for both after I submit for one? I was reading that the approval process on a multifamily mortgage is more stringent, so I'm guessing I should start there (?).

Thanks for taking the time to read this! I've obviously never done this before. :)

You should definitely start with multifamily! That will allow you to eventually move in to the sfr of your dreams. The loans are no stringent they just vary from property to property because the cash flow changes.

Also know when shopping around for lenders anyone who advertises no lending fees usually has higher interest rates. They stick you with a higher interest rate, earn a higher commission and use that to cover your lending fees. Avoid them all together.

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I have been hearing everyone screaing for the next market crash. Now that the stock market has reached a point of correction and teatering on the verge of a recession. It is going to take sometime for the effect to trickle down to the real world but it is coming quick.

I am curious to know how much people have lost so far and what are you doing to prepare?

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Originally posted by @Ben Hunt:

Thanks @Manny Cirino and @Jordan Moorhead for the responses!

I know that the seller pays the 6% and I'm also aware that by not using an agent does not guarantee a discount of the purchase price.

However, I felt more pressure than I would like for making an offer from an agent when touring a property. It seemed we had our own interest. Mine was to find a good investment and the agent's was to get a good commission.

Like everything, it varies from person to person and I can't project that view on to every agent.

Also, I'm not talking about not using an agent in every circumstance, rather the specific circumstance when there aren't really any properties listed for sale on the MLS.

I understand that is the trait of a bad agent. Agents should never be high pressure. All you have to do is cut them off and wait for the right deal and the right agent to present themselves.

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Originally posted by @Jon S.:

@Manny Cirino

How is institutional funds defined? It sounds like hard money won’t be available? My concern is that banks will tighten their criteria making it harder and more costly for smaller investors to get loans. Is that about right? What can small investors do to be more eligible for funding in a downward market?

Institutional funding is essentially big banks. Money will always be available but just more expensive reflecting the risk. All you have to do is adjust your analysis accordingly vacancy rate will increase debt coverage ratio requirements may increase as well as interest rates. Don't over think it a deal will always be a deal

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Originally posted by @Ben Hunt:

Hello BiggerPockets!

There's a small supply of MF properties, specifically 4-plexes, in the area that I'm looking in and I don't see much value-add from a buyers agent. I plan on house hacking a 4-plex that has some value-add potential.

I'm currently set up on the MLS for a feed of 3 & 4 plex properties, but there's hardly anything on there, just a few listings.
In addition, everything that I've seen on the MLS, I've seen on other sites like Realtor/Zillow/Craigslist and etc.

So, from this, there's not much to manage in terms of property searching. I'm already resorting to an off-market search, so especially in this case, would an agent provide any extra value and 3-6% of the sale value at that?

Also, this would be for my first purchase. I wouldn't want to use one solely because "you're a newbie", but if there's actual value-add that can be had.

Questions:

Is there enough value-add from a buyers agent in this circumstance to warrant the 6% cost. (or 3% after split)
What would I have to now manage if I didn't go with an agent? What would the difficulty be in making an offer myself?

Please let me know!

Best,

Ben

Working with an agent cost you nothing. The seller pays the 6% commission. And just because you don't use a buyer's agent doesn't guarantee an automatic discount on price. It definitely sound to me like you need a professional to guide you threw this purchase.

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Originally posted by @Erin Elam:

Originally posted by @Brian Gibbons:

That's like I want to learn ice hockey, lol!

Hey @Chaz Reid

What's SME ?

Here is a mini lesson on subject to

Subject to means get the deed or subject to existing financing

You buy the house subject to the existing financing

It's on the HUD 1 what loans are being taken subject to the existing financing

The business model is cash or terms

Low equity deals like 95% loan to value deals are commonly use subject to or lease-option assignment or wraparound mortgage purchases

I generally talk to sellers are not agents

The closing question is,

Mr. Mrs. seller I know you could pay the cost to sell with an agent but you probably have to pay to get rid of the house, as the cost to sell about 10% to 12% of the value of the house

You could rent it out

But here's a question I want you consider

What if I can get you a payment that would pay your P ITI for 24 months, someone would move into your house take care of it, at the end of the 24 months your house price would be whatever you are we can some mortgage or the ending balance, I don't even know if I can get my business partner to agree to it but if I could get those 24 payments paid on time, and you kept the loan in your name for 24 months just assuming the payments, with that be something you'd even consider or maybe not?

Hi Brian!

I hope you're still around 😊.

Question about your question to seller. You said 'at the end of 24 months your house would be whatever you are we can some mortgage'... can you please explain what you are saying? With 95% LTV there's barely any equity right? So at the end of the 24 months, do you offer to just pay off the remaining mortgage (meaning the seller doesn't make any profit) with a refinance from your new homeowner, or is there a balloon amount agreed on at the beginning of the 24 months (and seller pays anything in excess due to taxes or ARM, etc)? Trying to understand what you said 😊.

Thank you in advance,

Erin

Translation what Brian's smiley faces says. Is you have to pay to learn further.

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Not if the market is in deed crashing make no mistake about it.

Best thing to do is sit back and watch patiently as things start to collapse. I already know several people around me in the medical field being laid off.

Study subject to, seller finance or wrap around strategies and most importantly, negotiating short sale. People made alot of money in the last recession investing in short sales and loss mitigation(loan modifications and short sales).

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Institutional funds will always be available. Hard money lenders will have a hard time raising capital to lend out. Lending money on a property that is losing value fast is way to risky for fix and flips. Lenders will favor cash flowing assets mostly.

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All Forum Posts by: Manny Cirino

Manny Cirino has started 18 posts and replied 540 times.

Post: Fix and Flip Help me analyze this deal

Post: 15 day notice for lease violation in CT

Post: Mortgage applications - single or multifamily?

Post: Anyone Looking for A Market Correction???

Post: Should you use a real-estate agent for multi-family properties?

Post: Capital Availability In a Real Estate Recession

Post: Should you use a real-estate agent for multi-family properties?

Post: Subject To

Post: What Will You Be Doing if the Market Crashes?

Post: Capital Availability In a Real Estate Recession