All Forum Posts by: Ed Poltonowicz

I am not too worried about having to refi in 5 years. I have considered the costs of refi-ing and possibly much higher interest rates, however, I plan on selling another building that I own within the next two years and having that money in reserve in case I can not get adequate terms when I need to refi. And since I am amortizing over only 20 years, I will have already paid off 125k

We ended up doing two loans. A cash out on the building I currently own that is used as the down payment on the new building. They did not make me get new title insurance or charge any other fees on the first property so it made no difference to me whether it was cross-collateralized or two loans.

Here is an update, in case anyone is interested:

The lender issued a commitment letter with the above terms but included 2 points, which which was not part of the original offer. The old bait and switch I guess. I told them to kiss my *ss.

I went to two other lenders. The first had an underwriter who seemed confused by the whole deal and another lender needed to pass it upstairs and get back to me, which they never did.

Finally, I went to a small local bank. They had a commitment in my hands in less than a week. 4.75%, zero points, 20/5. Needless to say, I am very happy.

It is amazing how the various lenders perceived the same deal differently.

Thanks for all the replies. I plan to follow up with the sellers and see what I can work out based on the suggestions you have all given to me.

I need to get the true details of what is going on with the tenant but I wanted to be armed with solutions before I spoke with the sellers. Thanks for the help.

I am in the process of buying an 8 unit apartment building. In the Commercial Disclosure, the seller has indicated that one of the tenants has been late on rent several times in the past year and has been "asked" to leave.

I plan to ask the seller to begin the formal eviction process but it will take about 6 weeks in my state. That is about two weeks after our planned settlement.

I hate to push the settlement back but I also do not want to find that the tenant has trashed the unit after I have taken title.

Has anyone run into this before? Any suggestions?

I am not sure I understand. I hear of owners holding paper all the time in Pa. I am looking to sell one of my buildings and planned to hold the mortgage myself.

Are you saying that the seller can still hold paper but that he needs to have everything written up by a lawyer, or, that it is now illegal to hold paper, and many people are inadvertently breaking the law?

This has happened to me quite a few times. The fact is, it takes 45 days to evict someone in my state and costs $250. Just money down the drain.

The threat of a bad mark on their credit, etc., rarely works. I just insist on inspecting the apartment early and make them fix any problems so that they would have received their deposit back anyway. I also start showing the apartment while they are still living in it.

In almost every case, it was not a tenant trying to avoid paying for damages, rather a tenant trying to come up with the down payment for their next apartment/house before moving day.

In the rare case that it was a tenant trying to avoid paying for damages - this type of tenant does not usually care about credit, reputation, threats of eviction, etc. I hope for the best and carry good insurance. ;-)

Hello,

Also from Pa - Bucks County. Joined Dig and attended a local sub-group meeting last week. Looking forward to the next general meeting.

Thanks for the responses everyone.

They offer a 7 year reset at 5.75%

I do not know the PPP yet. My thought is that I refinance to a fixed rate within the next 3 years, but if for some reason I cannot, at least I do not need to worry about a 5 year balloon - just the floating interest rate, which would be close to the rate if I refinanced anyway.