All Forum Posts by: Kevin Yeats

The best advice that you got here was to contact your insurance company and perhaps even a lawyer.

Do both.

There are some issues here that work in your favor.

The tenant moved out and then claimed that their child contracted an infection.  Unlike the ceiling collapsing on their child (with obvious injury), it is not clear from the information that you presented that the child contracted the infection from living in your property.

It is possible that the child developed the infection from the new place of residence AFTER vacating your property.

There are the issues that courts and lawyers decided and why insurance companies settle or take the issue to court ... and why you pay insurance premiums.

As others have stated, this is not legal advice.

REIA meetings. Look them up for your area .... and keep reading here on BP

Eric Drenckhahn wrote several great blog articles on screening tenants. Very worth reading for someone in your position. Look in the blog section.

Lamonte, It sounds like your subpar credit (I am assuming here) is holding you back. Work on repairing your credit (Captain Obvious talking).

You also mentioned "owner occupied multifamily." I take it you would like to live in one of the units. This could provide the opening. Check into FHA multifamily funding with low down payment requirements.

Another avenue would be to find a partner and buy a property together with your doing all of the property management and maintenance while living in one of the units. This partner could be the current owner who is 10 years away from selling and retiring. You and the partner would need to work on an agreement on the equity split and how that changes over time as you improve the NOI.

Have you envisioned some goals for yourself and your business and did you write them down?

Steve,

A couple tips.

Don't sound desperate ... no matter what.

Try this as a conversation starter ...

"I'm expanding my business and I need your help. Who do you know who has invested in ____________ (investment real estate) in the past?"

If you get a name, follow up with "How do you know Joe/Jane Investor" and "What is the best way for you to introduce me to Joe/Jane Investor?"

Be sure to ask it as "Who do you know ..." (requiring a specific answer) rather than "Do you know ..." (which is a yes/no question).

Good luck.

Rub

This will have to be a cyber rub as I am in Florida.

What questions do you have?

Chris, thanks for explaining the situation from a bank's perspective.

One word ... paragraphs.

Chris, what is the current loan balance? Any prepayment problems?

What is your time frame for refi?

When was the appraisal made?

Do you have a waiting list of tenants so that once you rehab the remaining vacant units you can fill this right away?

Gary et all, another MAJOR issue with blanket loans arises when the borrower wants to sell one of the properties under the blanket. Many lenders will NOT release individual properties from under the blanket. Best to get that cleared BEFORE closing the loan.

Justin, other types of lender such as hard money lenders or the "softer" hard money with who I work will not make you wait if you have a good deal. The down side is that they will require larger borrower equity stakes in the properties (ie lower LTV of 65%-70%). Some of these lenders may allow a second mortgage.

Find the right deal at a good price (with enough of a margin that you are assured to make money).