All Forum Posts by: Martha Daisley

Thanks for everyone's info!

@steven E. yeah the banks i spoke to for commercial loans all said they dont do preapproval letters for commercial. Besides that the sellers dont require one anyway.  

I got the financials from the seller yesterday. The rent roll and property income/expenses were all detailed in a spreadsheet. Is that how the financials are usually presented?  In other words, is that sufficient or should there also be actual bank statements, deposit slips, airbnb report etc.  I think they gave me the spreadsheet so I could get a better idea of the financials in order to be able to make the offer. Would the supporting documentation come after an offer is accepted?

Thanks again for everyones input!

Martha

Hi @Israel thanks for all the great info. The sellers are very informal, they said to just let them know verbally what the offer will be. My only setback with not having all the actual financials and rent roll is that I cant get a more accurate picture of what my potential lenders can offer me in terms and rate until i have that.  So my offer is going to have to be based on assuming worst-case scenario finance-wise. 

Martha

Hi Stephen. Yes, i know the asking price and the sellers also supplied a write up of revenue and expenses. So i have a pretty good picture of where the offer needs to be in order for this to work for me personally.  Im just not sure if i submit it now or after they get me the official paperwork of financials, rent rolls etc. ?

The sellers are still working on getting me the docs. The lenders ive been corresponding with all want to see this documentation before they give me terms and rate.

Im not working with a realtor and neither are they.

Martha

Hello

i am in the process of evaluating my first multi family deal. I have been speaking to potential lenders all of last week. Today i just finished looking at the property and id like to make an offer. The sellers supplied a summary of the financial info (revenue and expenses), However i havent received the actual accounting financials , leases, and rent roll from the sellers yet.  Most of the potential lenders want to see this info before they can give me terms and an interest rate. So what is the next step? Do i make a preliminary offer?(which i may need to change later when i get the info and get terms from the lender) or do i wait until i get the financial info first before making the offer? There are also other interested parties so i want to make sure im moving quickly.

thanks!

Martha

Hi guys

Im evaluating a multifamily deal right now. Ive always done residential loans. This is my first time attempting to do a commercial loan. For a 6plex multifamily, what is the min net profit you would expect to get per month to make it worth the effort?  On my re residentials, i like to get at least $400 to $500 a month in net profit per month in order for it to be worth my while. So for a multi, what is the min you would take or what is a "normal ballpark" amount that would be considered a good return?

thanks!

Martha

Thanks for your response Dan. How would one calculate cap rate on this?

Martha

Hi everyone!

Im an investor with a couple of residential properties and an airbnb. ive never done a commercial loan but Im considering my first multiplex deal with 6 units in it  I have two questions. First off, how do you guys usually structure these multiplex deals?  Just go to the bank and get a commercial loan or some sort of creative financing?  I had one lender tell me they are not doing commercial loans during covid so im hunting around for one that will. 

Secondly, how can i determine if this deal has a good cap rate based on these figures:

Price: $424,900 
Total Average Monthly Rent Income: $5,160 (currently fully occupied and no repairs needed)
Average Monthly Expenses: $955 (utilities, lawn etc)
Taxes & Insurance: $537 / month

These expenses dont include my loan payment which im estimating would be somewhere in the neighborhood of 2k a month.

So im estimating my net profit would be around $1400 or $1500 a month. I would set aside some money for vacancies and repairs too so it would really be around $1300 a month in profit. 

Does this sound like a good deal?

Thanks in advance for your input!

Martha

Hi guys

My husband and I own a couple of rental properties and the loans are in both our names.  It occurred to me that having outstanding loans on multiple rental properties may negatively affect our debt to income ratio and our ability to qualify for another primary residence loan should we decide to buy another primary home in the near future. 

I am currently in the middle of refinancing the two rentals we have and I thought  maybe it would be a good idea to see if i can get the refi loans in my name only when they close rather than having my husband on them.  My thought process behind this was to reduce his debt to income ratio so that when we go to buy another primary residence, he can apply for that loan by himself and have a lower debt to income ratio without multiple rental properties on his credit.  He has great credit and the higher income too.   Are there any drawbacks to what im thinking? Is it worth making this change or is it a none-issue?   Would lenders still include the rental property debt as part of his debt to income ratio even if the loans are not in his name if they see those properties on our joint tax return?  

thanks!

Martha

@mike Mcarthy, ok thank you, good to know! Yes, what we really need is just the access so the bank can get in and do the appraisal. The owner actually already mailed the keys to the realtor thats working with me its just that they wont get to her in time for the appraisal. 

Ok. I have a text from the owner giving the go ahead.  He said he didnt care if will drill the lock out but not sure if he means to just leave a hole there or change the locks and give him new keys. im going to clarify that with him.  If he does just want to drill the lock out and just leave a hole, the locksmith can do that too right? This owner abandoned the property like 15 years ago so he really doesnt care.