All Forum Posts by: John Tran

I don't think the fees are out of line, but personally I'd prefer a HELOC. They're generally free to close and you don't pay anything until you draw on them. You're likely to get a higher line of credit too, as long as your DTI supports it.

Any reason you wouldn't go that route?

We have a HELOC for our residence but for rental investments I don't think the banks do HELOC. If anyone familiar with GA banking please let me know if I am wrong.

0 Votes

Atlanta, Georgia

Quote from @Jay Hurst:

Quote from @John Tran:

Quote from @Jay Hurst:

Quote from @John Tran:

Hello BP Experts,

I have a quick question.

I want to pull out some equity from my 9 existing rentals. Each of them valued about 250K all paid off and cash flowing. First Carolina Bank of GA offer me a $750k LOC for 35 months (to avoid intangible tax of $2250 it need to be under 36 months) I need to find out what my option with renewing this LOC with them at the end of term, whether there will be more fees. Part of the deal is me moving my deposit accounts to them.

Here are the fees they proposed:

Loan amount $750K Interest rate is prime flat.

Document prep fee $150

Loan origination fee $3750

Desktop appraisal with drive by inspection: $2475

Flood Determination Fee: $81

Attorney fee: $600 ( I work with this attorney often so I think his fee is good for this case)

Title insurance: $1613

Title review $765

Some other negligible fees.

My question is: Is this a good term?

thank you so much for any advices.

John

@John Tran I guess my first question would be what do you plan on doing with the funds?

I am planning to use the fund to purchase more SFH rental units or put it toward new construction of SFH rentals. $750k would allow us to build 3-4 more units of 2-3 bedroom.

Would the 750k be enough to pay cash for the properties or would the 750k be down payment funds? In other words are you looking to use the funds for short term use then a line of credit can be great. If using the funds for long term there are better options.

We plan to use this for short term use for paying cash should some opportunities become available.

We are not pulling the money out just yet. Hopefully rate will be lower when we need the money, maybe end of 2023 or mid 2024.

0 Votes

Atlanta, Georgia

Quote from @Jay Hurst:

Quote from @John Tran:

Hello BP Experts,

I have a quick question.

Here are the fees they proposed:

Loan amount $750K Interest rate is prime flat.

Document prep fee $150

Loan origination fee $3750

Desktop appraisal with drive by inspection: $2475

Flood Determination Fee: $81

Attorney fee: $600 ( I work with this attorney often so I think his fee is good for this case)

Title insurance: $1613

Title review $765

Some other negligible fees.

My question is: Is this a good term?

thank you so much for any advices.

John

@John Tran I guess my first question would be what do you plan on doing with the funds?

I am planning to use the fund to purchase more SFH rental units or put it toward new construction of SFH rentals. $750k would allow us to build 3-4 more units of 2-3 bedroom.

0 Votes

Atlanta, Georgia

Hello BP Experts,

I have a quick question.

Here are the fees they proposed:

Loan amount $750K Interest rate is prime flat.

Document prep fee $150

Loan origination fee $3750

Desktop appraisal with drive by inspection: $2475

Flood Determination Fee: $81

Attorney fee: $600 ( I work with this attorney often so I think his fee is good for this case)

Title insurance: $1613

Title review $765

Some other negligible fees.

My question is: Is this a good term?

thank you so much for any advices.

John

2 Votes

Atlanta, Georgia

Here is some information I just came across that real estate investors need to be aware of.

https://evergreensmallbusiness.com/biden-real-estate-tax-proposals-scramble-planning-for-investors/

0 Votes

Hello all,

My LLC owns a commercial building and my business(a separate LLC) leases it. If the city wants to force eminent domain on the building can I file 2 separate claims for compensation?

One claim is for the value of the buiding as an income generating property. The other is for the business being forced to move which will result in lost lease home improvement expenses, and lost of business due to the move, lost of efficiency due to the disruption.

0 Votes

All Forum Posts by: John Tran

John Tran has started 6 posts and replied 16 times.

Post: Refinance of rental properties

Post: Refinance of rental properties

Post: Refinance of rental properties

Post: Refinance of rental properties

Post: Biden Real Estate Tax Proposal

Post: Eminent Domain Compensation