All Forum Posts by: Tou V.

Are there any reputable lenders today allowing 80/20 combined loans? There's all the talk of purchasing properties with the lowest down payment. I've found a few sellers who are willing to carry a 2nd for the 20 - 25%%. Also have a lender who will loan up to 80% LTV on SFR or 75% on 2-4 units. Only issue is the lender will not allow the seller 2nd. Thus making me come up with the full 20-25%. Any lender out there still allowing seller carry back or 2nd, while loaning 75-80% LTV on first deed? I need some loans.... Thank you.

Are there any reputable lenders today allowing 80/20 combined loans? There's all the talk of purchasing properties with the lowest down payment. I've found a few sellers who are willing to carry a 2nd for the 20 - 25%%. Also have a lender who will loan up to 80% LTV on SFR or 75% on 2-4 units. Only issue is the lender will not allow the seller 2nd. Thus making me come up with the full 20-25%. Any lender out there still allowing seller carry back or 2nd, while loaning 75-80% LTV on first deed? I need some loans.... Thank you.

Just wondering how does public tax auction work?  If I win at one of these auction do I get title (become legal owner) of properties?  Does the previous mortgages get cleared out, considering the lender had years to redeem the property and avoid the tax auction?  I've seen some houses going to auction for $20k and the winner bidding only $40k for a house worth at least $120k.  Anyone with experience with this?  Thanks. 

I would probably view the places once, then trust my agent and PM to take care of it on a regular basis.  Don't plan on making too many trips out there. 

I've been trying to decide whether to invest locally or out of state.  Here are the 2 scenarios.

Option 1)  Buy 3 x Triplex in Stockton  area at $180k each triplex, total 9 units.  It will require 30% down, say $162k for all 3.  Each loan would be $128k at 5% = $676 a month.  Gross rent is $2200 / triplex.  Basically spend $540k for gross of $6600 month.  Good thing is they're all local to me and have better chance for appreciation.

$6600      - gross income

-$825      - taxes and insurance

-$900      - water / garbage

-$2028    - loan payment

-$660      - vacancy estimated

-$660       - repairs estimated

-$660      - PM - but I'd most likely take care of it myself

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$867 - NOI each month....???? (Am I being too conservative, as expenses are way above the 50% rule)?

50% rule would be $3200 - $2038 = $1272 NOI

Option 2)  Buy 3 x duplex in Rochester, NY (yeah, out on East coast).  These duplex average about $50k each.  Most likely, I'd be paying cash as loan fees are pretty expensive relative to loan amount.  Basically $150k for all 3 duplex.  Should rent for $1400 per duplex.  So, $150k for $4200 of gross income.

$4200      - gross income

$600        - taxes and insurance

$600        - water / garbage

$420       - vacancy

$420       - repairs

$420       - PM

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$1740     - NOI each month

50% rule saye = $2100 NOI

If you're buying turn key properties from Engelo Rumora or Holton Wise's , then as long as the financials works for you, it should be good.  As both Engelo and James are both stand up guys and will treat you right. 

Andrew,

I've been searching for the same thing, such as JV with other turn key operations. So far haven't found any that makes sense to me yet. What I'm finding is the other party wants me to put down most of the cash required to obtain property, while profits are split evenly. I'd have to put down between 75-80% , even had a few who wanted 100%. While I understand that the JV (other party) will be doing most of the day to day work and should be compensated for such. It puts most of the risk on you as the other party has very little to lose if somehow the deal goes south. If you're purchasing the properties all by yourself and just having them manage it then, that would be the ideal way to go. As you'll get all of the rewards while taking all the risks also. Only way I'd put down most of the money is if it was such an awesome deal making so much $$$ and the JV had exclusive rights to it. Just my thoughts.

if you can hide the fact that you're the owner, sure hiring might be good.  If they find out you're the owner, they'll still go straight to you.  If I felt comfortable enough living there.   I'd just PM it myself and save some money.  

Have a question about properties for sale by RE agents who are also offering owner financing?  Is it better to just go through listing agent or get my own agent to represent me?  Reasoning is they may be offering 3% to selling agent.  If I just work with listing agent, then obviously they'd get all 6%.  I've asked and listing agent says, they have a contract with owner for 6% total, which they're offering co-op of 3%.  What are the pros and cons?  Thanks.

Most of you guys agree it's a good but then, based on the numbers provided? This will potentially be my first commercial buy. Currently only have a few duplexes and SFR. This will be something different. Thanks for all the input.