All Forum Posts by: Tyler Smiarowski

I hear a lot of people on BP talk about that the best they can get for financing is typically 80% LTV. A local bank I work with will loan out 85% LTV on 4 units or less and 80% on 5 units or more...here is the kicker though.

They will loan on the appraised amount even if higher than purchase amount. Example: 4plex I purchased late last year for 115k...it appraised for 130k...so they loaned me 85% of 130k which is 110.5k. So when factoring proration of taxes and getting rents prorated...I basically brought now money to the closing. These loans are "in house" loans which make a difference of course. Has anyone experienced this with other banks???

MODERATOR: REQUESTS FOR BANKS NEED TO GO INTO THE MARKETPLACE FORUM. SORRY.

Hey Adam,

What do you do in CR? Do you own any property?

How is a typical contract structured for a wholesale deal? Does anyone have a contract on a wholesale they could share? How long is the typical contingency? What do you consider the stereotypical wholesale deal? Thanks

Just wanted to get opinions on how people approach investing in low income areas. I've heard people who have done very well investing in these areas and others who tell you say don't even consider it. My current properties I would consider to be all class B properties.

Some questions I have are:

What are cash on cash returns you would expect? cap rate? Do you put them on short notes and pay them down fast?

I'm using what you indicated what you use for CR/Marion. 5% for vacancy and 8% to 10% for r&m. If I used 10% for both I have a 9.45 cap rate.

I plugged in some new numbers...using 5% for vacancy and 9% for maintenance and using current income and expense....this comes out to a cap rate of 10.45% based on the purchase price. What do people shoot for when calculating cap rates?

Not trying to shoot the messenger. The co ops I have in Marion have already been changed to residential status....this happened when the assessor's office received the info back in January or whenever they received it.

Justin,

I don't see how they could do that since when the assessor's office receives the info on the co op in order to change the classification from commercial to residential which is done on the front end of the process.....then 18months down the road say "oh by the way you need to comply with such and such". When I did the coop on my Marion properties it initially got held up because the building codes supervisor indicated that they needed to meet building codes....which is completely false because Marion has nothing in their code indicating this. Once my lawyer followed up it was fine.

Justin,

I had two coops done earlier this year in Marion..I just texted someone about the issue....about 99% sure nothing has been done in CR to detour co oping...my lawyer at Riley and Bradley didn't mention anything either a few weeks ago..\

What kind of stuff do you do in the area? do you rehab and then rent out? Glad to see some local people on the site.

Justin,

Can you refer me to something that indicates this? I know of at least one person that has done a co op in the past 8 weeks or and I know for sure they don't have a sprinkler system, etc.