All Forum Posts by: Jay Myers

Hello, I started buying duplexes and 4plexes about 2 years ago using the BRRR or BURR method. (Buy, update, rent, and refinance). I've purchased 12 properties, 90% of them being 4 plexes. I have a total of 6 conventional loans and a few commercial bank loans in my portfolio. I recently purchased 2 more 4plexes with money from a LOC, which i plan to refinance asap. It is my understanding that I am allowed up to 10 conventional mortgages. However, It is becoming more and more difficult to get these loans approved. Any advice on which mortgage companies are easiest to work with for multifamily financing? I've used Quicken, Stonegate, and NOLA lending so far. I've heard about portfolio loans, but don't really know anything about them? I'm just looking for advise to continue future purchases. I feel I'm about to hit a roadblock in the near future. How do I keep this from happening?

Thanks for your input.  Yeah, I've heard that smaller banks have smaller regulations.. I'm seeing 20yr amoritizatikns with most banks?

Upen, concerning your 30yr fixed portfolio loan? I assume that is the same thing as a blanket loan?  Didn't know banks would do 30yr?  What kinda rates?  I assume I would have to sell all properties at same time?

Thanks guys for your input!

Hello, I'm new to BP and really could use some advice on what financing options are available through banks for 4plexes. I have acquired five 4-plexes over the last year through conventional loans. Now that I'm maxed out, I'm starting to seek commercial loans. What are some of the best terms you guys are seeing from banks? Are there any other options available? I really don't have much experience with commercial and could use guidance. Are there any options over 5-7yr arms? 25-30yrs?  Interest caps? 

Thanks!

Hello, I'm new to BP and really could use some advice on what financing options are available through banks for 4plexes.  I have acquired five 4-plexes over the last year through conventional loans.  Now that I'm maxed out, I'm starting to seek commercial loans.  What are some of the best terms you guys are seeing from banks? Are there any other options available? I really don't have much experience with commercial and could use guidance.  Are there any options over 5-7yr arms?  Thanks!

Sorry Greg,  I assumed your previous post was dealing w 4-plex or duplex.  I've read so many post they run together.  Comparables are for 4-plexes or duplexes.  Anything over 4, Brosn has you covered

This is generally a rule of thumb for finance companies.  I am not sure about the states listed above, but several companies like Quicken, Stonegate, etc.. do not require the two year rule.  In fact, I purchased several 4- plexes in the last year using documented income that was only months old.  Stonegate is very cooperative.  Maybe keep them in mind.

Greg, 

Cost per sq/ft (appraisal) will be based on the comps in the area. Then they will compare condition to other like units, if there are any sold in last 6 months.  Unfortunately, your documentations of cash flow or rental income has little to do with appraisal.  It does determine whether you will be approved with some banks, according to policies.  Your best bet is to find another similar property sold in the area to determine how much it sold for per sq/ft.  Then again, appraisers can be all over the place with numbers.  I have lost a lot of great deals because of bad appraisals. Unfortunately, the new laws will not allow us to pick which appraisers to use.  The banks have to rotate through appraisal companies.  Have I seen banks cheat the system, and handpick their appraiser--yes!  Goodluck!

It's the rule of having "Seasoned Funds" which most banks require that makes borrowing the down payment scenario difficult.  I guess if you were able to borrow the down payment and leave it in an account for three months, that would be different story.   Just my experience.