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All Forum Posts by: Eric Johnson

Eric Johnson has started 20 posts and replied 613 times.

Commercial loans, infinite scalability. Got cash? Non-stop acquisitions.

Post: looking for special lender

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

Okay, well what is the top line revenue and how many years in business?

Post: When is it appropriate to bring up seller financing?

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

Marcello, you need to clarify the terms of seller financing before you draft an offer for submission.

How can you write a contract and not know the terms of which the seller will agree to finance to? Call up the agent and have a discussion and find out what the seller wants. Do they want to hold the note long term? Just provide you acquisition and have a short term note, so you can refi? These are some questions to ask as you go about navigating this deal.

Post: 4 Unit in Woonsocket

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

Do more research on the area. Usually investing in positive net-migration areas/neighborhoods are an important factor of msa analysis.

Post: Texas investment property heloc options

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

This is a question for your local lender, BP can probably only get you like 50% of the info you need to make a good decision or have info you can trust. I'd recommend just dialing a couple lenders and asking.

Post: Market analysis - Tampa Bay MSA

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

Bernard, if you want to see increased cap rates, go to secondary markets. Instead of relying on loopnet, call those brokers and get on their coming soon list. Let them know, if they have a listing coming up, you want to see it before it goes live on loopnet. 

This can give you a slightly better chance of seeing something with a higher return. Multifamily doesn't have to be a grand slam, you can pretty much get there with base hits.

good luck

Post: Is it a stabilized property or not?

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

A better question to ask is what state are you buying in? If you have any difficulty with these tenants, you should know the timeline on the process of replacing them. 

You can stipulate one year leases, but then one of those six tenants probably won't agree, so you have a problem there. You need to make sure you can actually get them out if the need arises, even if the lease is month to month.

Post: looking for special lender

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

Have you tried going non-bank business financing? Is that the request? 

From the post, it's hard to tell what the exact ask is. 

Post: MultiFamily Purchase under FHA in Los Angeles

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

Broker is wrong. Lender should tell you the the actual formula: income from total number of units - 1 unit (whatever one you are living in) x .75

That's what the lender should have told you. That net result of that formula needs to cover your mortgage, also known as self-sufficiency test, which make it tough for investors.

Feel free to shoot me a DM.

Post: Buying a House With a Credit Card and No Money Down

Eric JohnsonPosted
  • Lender
  • Chicago, IL
  • Posts 653
  • Votes 313

Ross, interesting experiment. Congrats on your results. It ain't all too shabby, haha