All Forum Posts by: Eric Johnson

Aaron, have you run this deal by your lender? STR is extremely conservative right now and not a hot asset type to finance...

The ability to refi the portfolio depends heavily on the portfolio itself, what the market values are, what locations, what asset type. Happy to  assist, you can shoot me a DM/email and I will be upfront with you on the possibility of financing.

Awesome story man! Big congrats! 

Lisa, 5+ unit buildings are not financed the same as 1-4 units. There is a lot to talk about. But in short, if you don't have equity there's really two ways to do it.

1. seller finance as much as possible and bring in a partner with capital to fill the gap

2. Bring in a partner who has capital & get the building financed with long term debt. Multifamily financing is heavily operating statement focused... they don't care about your personal DTI, the fact you have experience is a plus.

Derek, any reason you'd prefer investing in a syndication rather than doing smaller deals and deploying your own capital? Obviously, the passive nature, but you can find an operating partner and you wouldn't need to give up control. Syndications are very specific, if you have any real estate experience, you may be better off doin your own thing. 

Just some thoughts, good luck! 

Yes. Depending on the debt service ability of the building and the location, they can be harder to finance. However, still possible, but the money will probably be more expensive, especially being a true small balance deal. Feel free to shoot me a DM, maybe I can assist. Good luck

@Dharmesh B. there are many factors that go into this & is a different ballgame than residential. Shoot me a DM, I'd be happy to offer some insights. You need to clarify things like rate, term/ amortization, prepayment penalty (YM or stepdown), the best LTV to fit the deal, the overall deal process, & more...

Going from 4 units to 5 units is much more complicated just because of the financing component. You will not be able to translate your knowledge from one to another using only previous experience of residential deals.

Good luck

You can be in the high 2s. Just don't overpay for an interest rate though... Especially if your loan amount is above $250,000+. Why would you pay 2+ points? That's cost siphoned straight from your equity (on refis on purchases would be additional cash to close). 

Good luck

I have a minimum loan amount of $75,000 on Shoresides direct lending platform. However, mine are asset-based commercial loans. Not sure if you are looking at conventional. Go to credit unions if you have smaller deals. A lot of them are just not economical. 

You might want to look into SMS... direct mail will get you there...really really slow.