All Forum Posts by: Larry H.

Thank you. I've never heard of that before. 

My loans are residential. I didn't realize you were looking for a commercial loan.

We are new investors. We just bought our first two 4 plexes in October 2015. I can't move on anything else until at least August, but we are already planning on acquiring more multiplexes in Baton Rouge. We are from there originally and have family helping us maintain the properties. 

Patrick Rowe contact Prime Lending on Bluebonnet. I have two multiplexes I finance through them. 75% LTV, 4.5%, 30 year fixed.

I currently have a 401k loan that I used towards my investment properties. I didn't want to do it, but sometimes you just have to do what you have to do to make things happen. At the time it seemed like my only option to get the cash I needed.

I recently bought 2 four plexes as my first investment properties also.  The seller was a family friend.  It just so happened that we closed at the first of the month.  He arranged for rent pickup and I met him there.  Since he had a relationship with all of the tenants, I thought it would be best if he was there for our first meet.  He introduced me as the new owner and I collected the rents.  I also had new leases typed up for them to sign and explained to them that everything in the lease was the same, except that it was between my company now instead of his.

The previous owner was pretty lax and it took a couple of stressful months to get the tenants to figure out how we are going to do business, and now it is going much smoother.

My wife and I just purchased our first investment properties (2 four plexes) in October.  The tenants are all low income and some don't even have bank accounts.  The previous owner is a family friend and he has always collected cash for rent, so that's what we have been doing.  It's getting to be a hassle trying to line everyone up to be home on the same day to collect rent in one day so I am planning to change our collection method.

I drafted a letter to send to all of them informing them of the change.  I am informing them that we will no longer be going there to collect rent and I am giving them 3 options to pay their rent.  mail a money order to a P.O. Box we are setting up specifically for this purpose, deposit the cash directly into our business savings account, or send the money via PayPal. 

Does anyone have any experience, suggestions, or warnings regarding this?

Thank you.

Integra Group just wrote a policy for a 4 plex in Baton Rouge. 

I created a spreadsheet using the formulas recommended by BP and I am having a really hard time to find a deal that meets the $100 per door cash flow criteria for a buy and hold property. I am primarily looking into multifamily deals and mostly what I'm getting from the MLS are duplexes.

I also searched a single family home in an area I know I can get $1200-1500 rent on a single family 3/2.  On a house I thought seemed like a decent price I am getting negative cash flow based on my formulas.  Am I doing this right?

I need to get a home equity loan for the down payment, so I realize that doesn't help, but even if I didn't this property would still have negative cash flow. I even ran a scenario where if I could buy the property at $70,000 and only used the HELOC to pay for the total purchase price, with no mortgage, the cash flow is only $31.

I did the same thing for our first investment properties. The big bank who held our mortgage valued our house $65,000 under market value. What is worse, their HELOC appraisal was done 4 months after they already did another appraisal to eliminate our PMI. So they undercut their own appraisal that much in 4 months when the market in the area was still holding strong and hadn't declined at all. We ended up going with a credit union and they valued our property appropriately.

Leases are not an issue.  A new tenant has state paperwork that needs to be filled out and signed and we were trying to get everything turned in to the state today (Monday).  After talking to the office we found out it wasn't that urgent and we can do everything by email.