All Forum Posts by: Justin R.

Can someone please help explain guidelines for apartment loans. I just went under contract for a 6 unit multi fam in Michigan. My plan is to BRRR (buy, rehab, and then finance) this property. Are their min/max amounts to apartment loans, whats typical LTV, seasoning period, rates (in comparison to sfd investment loan), closing times? Has anyone used a lender they highly regard? Thank you

Im in Ventura county which is also an elevated housing market. I push the envelope above 70 percent, but never above 80. Obviously you have to go beyond that initial "rule of thumb" and determine rehab and holding costs. Dont forget you give up appx 8 percent on closing costs alone.

Does anyone have experience with a property manager in Portland Maine? If so I would love to get referred. 

Thank you,

Justin

Hello Everyone!! I am looking for a quality Property Manager in Santa Rosa CA. If you have any referrals of PM's that you have worked with please let me know. Thank you for your time!

@Curtis Harvey 

15k down. House was already dialed in with medium quality rehab.

In my opinion, one of the best way for newer people to get into the business is finding deals. If you can find a great "deal" everything else will fall into place. 

Researching and analyzing gives you education and experience within multiple facets, including assessment and analyzing, local markets, trending, etc. 

If you find a great deal people will want to partner with you, offer you loans, or take the contract from you. Most importantly, this allows you to network and create new relationships.

@Brynn Misener I listed the home just above market value. The buyer offered full asking price. The loan is a 30 year fixed, with an interest rate one point above prime (4.8) and ten percent down. After four years the rate bumps up one and a half points, with the intent the seller will refinance out of my loan.

This gave me the opportunity to sell my home at the higher end of comps, allowed a less qualified buyer to own their own home, and gave me a place to invest my money other than the measly .75 yield I would receive in my savings.

@Curtis Harvey I still have rentals in various places throughout the South, and Midwest, including Indiana. I've always utilized property management because I enjoy the idea of "passive" investing, although I use that term loosely. I run my numbers to include PM fees so it's not an issue.

I sold the property because it wasn't performing as a rental. It ended up being a decent situation because I sold the property and am carrying the loan. Due to this structure, I was able to ask a higher price than I feel I would have if it was a conventional buyer.

I hope I answered your questions.

Many districts have a Homestead discount, which is basically an investors tax in theory.

Thats cheap!!!! Where can I rent a place for 1300? Its all relative......

I have a great referral for you as well. PM me if interested.