All Forum Posts by: Erick Garske
Erick Garske has started 27 posts and replied 62 times.
Post: CPA Comfort Letter

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
My lender is requesting a CPA comfort letter. Has any had experience with a lender requesting this type of document from their CPA? Has your CPA been reluctant to provide such a document due to the perceived liability associated with this letter? I have never received a request for such a document.
Thanks,
Erick
Post: Investor looking to isolate neighborhoods and zip codes

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
Thanks @Ned Carey. Would you be able to recommend a contact who may be able to help vet investment properties in the Baltimore area? Please feel free to contact me directly and connect.
Post: Investor looking to isolate neighborhoods and zip codes

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
I am an investor in Real Estate in Baltimore. I have lived in Baltimore years ago, and visited last year. I am trying to isolate which area to avoid and which to pursue either by neighborhood or zip code.
I like Hampden, Fells Point, and Charles Village but these are all priced out. I think that there are neighboring areas that are more affordable. I believe that areas to avoid are Druid Heights, Greenmount and North Avenue.
To that end, I am nearing the completion of a RE sale in California and am searching for replacement properties in Baltimore that would meet the 2%-3% rule and comply with a 1031 exchange.
Post: Need Home Owner Insurance for Baltimore, MD investment.

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
I am looking for a competitive quote to the one provided to me earlier for two investment properties in Baltimore, MD with a combined worth of about 150K. The original quote provided to me of $3858 seems way to high.
This policy includes liability at $1,000,000 each occurrence/$2,000,000 aggregate.
Both dwellings have a $1,000 deductible and contents coverage of $10,000 per dwelling. The contents coverage is applicable to non-permanently attached appliances such as a stove, refrigerator and a washer/dryer, etc...
Also a great benefit, this policy automatically provides Loss of Income (aka Loss of Rents) coverage up to 18 months and for your actual loss sustained. This is the coverage that would supplement any rents you would have lost after a covered loss that prevents your tenants from residing in the home and paying rent while repairs are being made.
Water & Sewer Back Up coverage (it’s required by law in Maryland that this coverage is offered on primary homes/condos due to the high number of these types of claims in Baltimore city) is also included up to $5,000 which is really nice given that it is often coverage not made available on commercial rental dwelling policies.
The quote is fairly straight forward but, please let me know if there are any follow up questions.
Post: Alive Investments

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
Post: Suggestions for DP-1 Homeowners Insurance

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
I am seeking advice for purchasing an home owner's insurance for a three bedroom row house that is 1092 square feet. It is currently vacate, but will be rented soon. I did receive one quote for $696 which seems too high to me.
Post: Alternative Financing Question for 1031 exhange

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
I am nearing the end of an escrow for one property, and am busily vetting deals for replacement properties to satisfy the requirements of a 1031 exchange.
The advice that I need is on evaluating the two types of financing.
Conventional - Typically LTV of 75% with a 4.5% rate limited to ten properties at 30 years
Pros
Low interest rate, No PMI, no points.
Cons
Extremely time consuming, much documentation, costly to cover closing cost.
Unconventional LTV of 50% to 60% with a rate of 10% not limited to ten properties interest only five years with a ballon payment. The intent is to either sell or refinance the properties prior to the end of the balloon payment. Cost of five points but is negotiable.
Pros
Can close in a week, only an appraisal is needed, avoids the time and energy of originating a loan. It is easier to refinance than an existing loan then to originate a new one. Closing cost is limited to docs and escrow.
Cons
High interest rate, high points.
Thanks in advance or your insights on these financing options.
Post: Portfolio Lenders

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
I am looking for a portfolio lender to lend against a group of yet to be identified properties in order to satisfy a need to complete a 1031 exchange. Briefly looking through the archive, I see that there are two: The Bank of the Internet, and First Key Lending.
Typically, what are the loan restrictions? Is there a limit to the number of properties that can be loaned against ( four to ten)? Is there a property value threshold?
What are the usual terms ( points, rate, duration )? I
Thanks,
Erick
Post: Looking to purchase a mobile home park

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
I am interested in leveraging the funds from a the sale of two residential rental properties currently on the market into a 1031 exchange. Generally, I am looking for:
Areas with increasing population
Avoiding A Class mobile home parks
Mom and Pop Parks
At Least 10% minimum Cap Rate Going In
Easy Rent Increases ( $10, $15, $20 ) per pad
Cost Reduction Options Turn Utilities over to the owner
No Park owned homes
Not in a Hurricane Zone
In an area not dependent on a single industry with a diverse economy
Offering Seller financing with 10% to 20% down.
I am not interested in a JV arrangement that would split the income 50%-50%. I've seen that being offered on numerous occasions but I believe better.
Thanks,
Erick
Post: Business Plan

- Investor
- Anaheim, CA
- Posts 66
- Votes 8
Is this a business plan to purchase and receive bank financing, or is it a more general business plan stating the type of investment ( i.e. sole ownership, JV, or 506 c fund participation)?