All Forum Posts by: George B.

Thanks for the advice! I'll stick with the good thing I've got going on

I'm looking to refi my commercial property. My lender is currently offering what sounds like a good deal, but this is my first time, so I wanted to run it past the pros here in the forums because I'm hearing about "commercial DSCR" loans with long terms. Right now I'm being offered an SBA 504 loan at 25years carrying 44% of the value. The small, local bank carrying 40% of the loan at 10years, 20y amortization with a 5year ARM. That leaves me with 16% in equity, pays off investors AND allows me to personally pull cash out. The SBA portion of the loan has early payoff penalties that decrease year by year. I don't have plans to sell, but I'm also structuring the business so I could sell if needed. The interest rates are also better than I expected.

This seems like an excellent scenario and exactly what I was hoping/praying/planning for. Getting cash out is a huge deal for me. QUESTION: Should I be checking with other lenders? I've built a relationship with this bank, give them all my business and was introduced to them for the purpose of refinancing this property. My DSCR is 3.85.

On a Real Estate Podcast episode in either June or July of 2021, Brandon Turner mentioned a software they use to video capture a computer screen to help document tasks that he will delegate to someone else. I've tried searching the text of some of those podcast episodes, and I can't find it! Does anyone out there know the name of the software? I think it could saved the video directly to their google drive.

Here's my situation:

We bought a duplex in Mt. Pleasant, MI in July of this year and will begin house hacking in October. The other half of the duplex will be a short-term rental. I want to learn more about HELOCs and refinancing options on the duplex to fund the next deal. I also want to a tax professional to help with my duplex and future plans. I have multiple options to fund future deals, but not sure which path to take, so I’ll be reaching out for advice on that soon.

Goals:

I am still developing ideas to reach our goal, but I have a couple paths in mind. One path I am considering is doing a combination of BRRR/flipping vacation cottages in NW Michigan, while also operating a vacation rental property management company. I would also like to BRRR a minimum 20-door multifamily. Both paths are currently ideas a a whiteboard.

Learning to analyze deals is my next step after the renovation of the duplex is complete.

Finding BP

I found BP while researching mortgage information after we closed on the duplex. If I had found BP a month earlier, I would have done things massively different!!! We still got a great deal on the duplex using a conventional mortgage with 5% down and no closing costs.

My Background

I’m employed full time as a Project Manager. I’ve recently moved back to the USA after 3.5 years living and working in the UK. I was sent by my employer to open a subsidiary NW of London. The struggle of starting a new business in a different country by myself was an amazing challenge. Over time, I was able to build a great team and create systems to support the business without the need for me to run the day-to-day. Working myself out of a job took time, but I was able to hand the business over the British team and my wife and I moved back to Michigan. This also gave me insight to the commercial side of property rental.

@Jake Toth hi Jake! I've just moved to Mt Pleasant and bought a duplex to house hack right by CMU's campus. Although both sides need serious renovation a friend needs the apartment in 1.5months. I'm rushing to get it ready but all contractors seem to be busy, and it would take too long to do all the work myself. I've got a couple questions about the properties you bought in Bay City. I'll message you!

-George