All Forum Posts by: Keith A.

Thanks @Chris Adams for the detailed response. I'll just need to package that information up so it's presentable. The DSCR's on the properties are in the 1.8+ range and credit in the 790 range. We also keep a conservative amount of reserve for them.

Does it help to have a high level overall business plan to present or is that overkill and should just focus on the specific property? My partner is in construction so he handles rehabs, contractors, etc.

My partner and I have a 4-plex in a multi-member llc. It is paid off and worth 240K. We would like to pull out the cash to use for more purchases and had some questions around this. I am experienced with conventional financing but not at all on commercial and I noticed most commercial lenders I have searched online have high minimums and/or 5+ minimum unit requirements.

Has anyone done a commercial loan on a property this size? Was it easy to find a lender doing so and if so any suggestions?

Is it common to have seasoning requirements on this type of loan?

How do you present yourself to the commercial lender on paper? Do you create a high level document with your work and investing background including current portfolio numbers? (we also have some SFH's)

@Jason Eyerly You can get a cash-out refinance from lenders with 6 months seasoning as @Matt Devincenzo mentioned. They will use the appraised value after this period. I've done a few of these in the past year.

If you find a private lender that is willing to do a short term note for a 75 LTV then it makes the conventional refi much easier with a better rate as it will be a rate and term refi versus a cash-out with them. They see it as less risky. Just depends if you have a private lender willing to do this.

@Jason Eyerly

You can drop the 100K coverage from Citizens and get the 300K underlying and umbrella from the same company in some cases. The agent I have used Hudson Insurance Group.

Originally I had USLI but they had exclusions for subsidized tenants so I switched to Hudson to cover that scenario.

@Steven Hamilton II Yeah, one of our software architects at the office got one as well and it is very nice. Basically replaced his alienware laptop with it with a much smaller footprint. His is the 256GB version which has 8GB ram but he is also running some heavy development and database software which needs it.

@Steven Hamilton II Thanks for the heads up. That's no problem. We have iPads but I want a Surface Pro 2 for this purpose.

Great. Thanks @Brian Kelsch for the quick response.

For tax purposes can you use the purchase of a tablet as an expense if it is used solely for the purpose of managing and purchasing properties? I would like to use one specifically for this and not my personal one.

Correct, @Bill Gulley I meant protecting the money I used to buy the property. Everything else can be split as long as I control what happens to this property. i.e. borrowing against, selling, etc.

@Ellis San Jose As I mentioned above it was more around protecting the money I used to buy the property.

It sounds like there is flexibility for this based on the agreement so I wanted to check before consulting an attorney. Thanks.

Is it possible using an LLC structure for buy/hold where I purchase the property and retain 100% ownership of the LLC but have a partner member(s) that I spit profits with on a percentage basis? i.e. 50/50, etc.