All Forum Posts by: Jason Taken

 7.5% is still a really good historic rate. Refinance probably doesn't make a lot of sense absent substantial appreciation or a substantial rate drop. I wouldn't even say a certain %...but something that makes the costs of the refinance worth it.

There are some subordinate debt options that go up to 90% CLTV. But the problem you're experiencing isn't uncommon right now. I'm seeing a lot of refinances come in the door where the cash flows aren't great.

One primary way to fight this is to talk to your refi lender BEFORE you sign a lease to ensure the debt service pencils out where you need it to. 

Have you done any deals before? 

What are your goals with the entity creation? Depending on that answer would drive whether you set up entities to hold your properties. 

This seems on the lower end for chicago. If you were paying for full blown policies, you could probably stack on another 2k. We fund stuff nationwide and chicago/illinois is on the higher end for fees. 

** NOT LEGAL ADVICE ** They're certainly enforceable, but the question of legality would ultimately fall on their motivation to take you to court over it if it ended up being a breach of contract. You could start my emailing them and saying you want out...and if that doesn't work...email their managing broker and say you want out...they barely did anything for you so not much invested...

One would hope it would work right there, but if it doesn't, then its up to you whether to roll the dice and wonder if this other agent will decide to take you to court over it. 

Most breach of contract cases are ultimately a risk-benefit analysis anyhow.

*STILL NOT LEGAL ADVICE*

I’ve been slowly writing content articles for all the hot markets covering these items. Really good for investors to know!

Most lenders will require you to have equity in the deal and reserves in the bank. The reserves can sometimes be in the form of securities but it’s not often a 1:1 exchange for reserve dollars. 

The number you need will Be based on the loan amount 

100% financing is a myth in most cases. There are some NON-QM lenders that do 100% financing on investment type properties (not long term, but rather bridge loans). These usually come with lots of experience though. A newbie will not likely qualify for 100% financing under any scenario for investment purposes. There could be exceptions, but it's largely not available. You'd spend more time trying to land 100% financing than you would putting 10-15% down and knocking the deal out with some skin in the game, and walking away 60-90 days later with some profit.

@Shamar Gregg hey man, welcome. I'm an attorney in Chicago and HML. If you'd like to meet for coffee and talk shop let me know!