All Forum Posts by: Kris Wong

I am familiar with Quest Trust Company and Rocket Dollar, both out the Austin area. They are very different business models (checkbook control vs. not). They are both very active in the local RE investment scene. I would recommend checking out both.

@Remington Lyman the important part is that the trend reversed in recent years.

@Remington Lyman Cincinnati also has positive population and job growth.

Generally speaking, I would expect to pay higher prices in Cbus than Cincy. The higher growth rate isn't "free". =)

Based on the price range you mention, I assume you're talking about duplexes, specifically. The Fannie Mae guideline in terms of a down payment on a 2 family home in which you do not occupy as a primary residence is 25%. That means any lender offering a conforming note will require 25% down. You may be able to find a portfolio or private lender who will accept less, but you would pay a higher interest rate for that.

Also, that price range is pretty low, especially for a duplex. You're going to limited to some fairly sketchy areas, just so you know what you're getting into.

When you say multifamily, are you referring to 5+ units, or multi-unit residential (2 - 4 units)?

Yes, I have. I would not discuss this with your lender. It technically violates the due on sale clause of your note.

https://www.youtube.com/watch?v=D50ZqerbKe0

@Imran Ahmed

> could you explain exactly how "deed the properties over to your LLC after you have closed on them (for legal protection)"?

This is a function of the title company. The ownership of a property is transferred using a deed, which is recorded with the county. A property can be deeded to a person or a company.

> and for 3% down on 4 unit without me occupying (solely for investment ) I got to convince a loan officer on that only thing she said LLPAs gonna be little higher.

I suspect she was mistaken. Unless the lender is offering you something other than a conventional note per Fannie Mae guidelines. In that case the interest rate will probably be a little higher.

@Imran Ahmed the majority of commercial loans under $1MM are recourse loans, so your "company credit" isn't particularly relevant. It's only when you get into agency debt (non-recourse) that that starts to become a concern of sorts. I would pick the debt that makes the most sense for the deals you are looking at currently. If you want to deed the properties over to your LLC after you have closed on them (for legal protection), you can do that. Also, 3% down scenarios only apply when you occupy a property as your personal residence. A conforming note will require 20% down for SFR, 25% down for 2 - 4 units.