All Forum Posts by: Frank Chirkinian

Hey thanks all for the responses.  I've been out of town and not checking biggerpockets or I would have responded earlier.  The main reason I'm looking to refi the property ahead of selling it is this window we're in looks like an opportunity to get a great price for the property.  At that same time, we're in a great time to finance the property.  Soooo, my thought it refi the property while attempting the find the right buyer, which may take a bit longer than the refi process.  The right buyer who is willing to pay the right price will more than make up for the $14k it's going to cost to refi the property.  If I don't find the right buyer, then I'm still in a good situation having refied. 

Also, there's the possibility of getting another wave of another COVID strain hitting us, and with my limited ability to find local banks to refi the property (and since this is a loan under $1 million, small community banks are the only ones that will lend), I don't want to lose the opportunity to refi now before that window possibly closes as it did 8 months ago.

I hope that answers the why.

I'm in the process of refinancing a multifamily property of mine in Fort Myers, Florida and I'd like to listing the property on Loopnet at the same time.  Wondering if anyone out there in the commercial mortgage market can let me know if this is a no no.

I do know that in the residential market, listing your property on the MLS will more than likely kill your refinance. I don't plan on listing the property on the MLS...just Loopnet.

Any thoughts from the finance crowd would be appreciated.

And by the way, my rentals I just put on the market in North Fort Myers are in great demand.  I just rehabbed 4 of the 7 units and they have a large number of people that want to rent them.  They are lower income units, but the applicants area showing current and previous years of employment. The area appears to be doing great based on the number of calls and the info in their applications.  

@Tony Blasioli

The look and feel of this downtown is not at all like the 2008 downturn.  The months leading up to that crisis where punctuated with tremendous building and insanity on the buy side, with no money down loans and way too much excitement as prices crested.  This time around, we have folks with skin the game,  and lots of investor cash sitting in accounts looking for a place to go, and low inventory (not to mention reasonable prices relative to interest rates).  I think the retail sector will get hit for sure, but I believe this too will be transitory as those commercial properties get repurposed by some smart chaps. 

Yes Paul they are in their own LLC and hey many thanks for the fast reply. And yes, you're right about many of these banks which appear to have back burner their commercial lending. Many of them are working on PPP loans. Even Wells called my today to ask if I had gotten a PPP. Shocking.

All the best!

I purchased 7 concrete block homes on 3 aces in North Fort Myers, Florida last Sept. for $225k. 6 are one/ones and then there's a 3/2 main house. Yep a nice deal. Having spend $120,000 on rehab costs we've completed 3 one/one's with new roofs and everything new inside and am finishing the 3/2 which also has a new roof and everything done inside.  I'm now renting those recently rehabbed 1/1 units out and should be normalized with all units rented by end of June.

I'm looking to do a cash out refi of $400,000 on a new valuation estimate of $600,000 (8% cap with fully transparent rental records).  

With the minimum Fanny Freddy commercial loans starting at $1 million, I'm restricted to local credit unions and banks.  Looking for other ideas to refi this property.  

Also, since so many folks are wanting to rent these units (and yes we're very careful about who we rent to), I've spoken to an engineer about building more units on the property and there appears to be entitlement possibilities.

Any ideas Biggerpockets community?

Yes I am.  Our last bookkeeper was virtual.  We only need about 1 hour of bookkeeping a week.  

I'm trying to find someone that can fill the bookkeeper role we just had open up.  Our girl is getting married and moving on.  I'm trying to find someone with quickbooks online experience and who knows real estate and in particular the flipping business.

@Christopher Brainard has the equitable interest right if we're talking about the state of Florida.  The above statue even states that the buyer must have  "substantial consideration" to be a valid agreement.  You also must have the resources to purchase the property if your end buyer fails to materialize.  So if you have a substantial earnest money deposit (suggesting it's more thank $10), and you have access to funds to purchase the property, then you do qualify as having equitable interest.  

Well my first question would be how much time do you have to close with a potential second lender?  Do you have time to go through the underwriting process a second time or can you/will you get an extension?  Are you at risk with a deposit if you get turned down a second time?

If you can work out the above, then go find a mortgage broker with a good rep.  Make sure you have a very direct conversation with him/her about how you expected to be treated by the underwriter (no stringing me along).

If the traditional lender fails, and I had a great deal on the line or I really wanted the property, I'd find a private lender and pay the points and higher interest until I could find a traditional lender that would take that private lender out.  The private lender will typically give you a one year balloon note, but you'd better be very confident you can qualify for a Fannie loan within the one year period.  Otherwise, you'll be looking for another private lender for year two.