All Forum Posts by: Marc-Antony F.

I tried something similar to that. In fact I had a meeting with a bank president to discuss it. In return for my deposits every month they were not really willing to give me any type of good deal and couldn't even give me the rate they would charge me.

Quote from @Jonathan Taylor:

@Marc-Antony F. as much as I would love to jump on this one, MN is tough state to lend in due to their licensing requirements. Most NMLS lenders (like myself) still need state specific licenses to lend on investment properties. I would search locally in MN as to not waste your time. A lot of lenders will jump at your loan amount but may deem useless due to licensing.

I got one better than that. A lot of local banks won't even lend to me because I am an out-of-state investor for some reason they think that I am more accessible if I lived in a state or something to that sort. Have a property management company whose job is to be my local eyes and ears.

Looks like I didn't get approved for my loan. The lender wanted almost 2 years of reserves for a cash out refinance which is crazy.  Perfect credit and cash flowing properties and they still want it ridiculous amount of Reserves. Shouldn't the Cash out refinance counts as Reserves? I guess not. Broker did a great job but the bank was way too conservative and unrealistic. Does anyone out there know of any other banks that will allow me to do a portfolio loan and use Land Trust in Minnesota?

Quote from @Jeff Schemmel:

Quote from @Jeff Schemmel:

Reach out to Tim Swierzcek.  He can help you.  I tried to tag him but I'm on my phone so it's not working.  Dm me for his info if you'd like

 @Marc-Antony F. reach out to @Tim Swierczek

 I sent him a message.

Quote from @Matt Cartwright:

Hi @Marc-Antony F. just sent you a PM. We aren't able to close in a land trust however we have DSCR rates with a 5 in front of them still so may be worth a look!

 Matt I don't need to close in a land trust.  I just need permission to transfer back to a land trust after closing.

Quote from @Erik Estrada:

Quote from @Marc-Antony F.:

Does anyone know if any good portfolio lenders that lend in Minnesota? I was going to use lendingone but they will not allow me to place the property into a land trust after closing. I'm doing a cash out refinance of about 20 properties and the loan to value is between 60 and 65%

Thanks

 Hey Marc! What are the property values? The minimum loan amount for a portfolio loan I have seen is at $750,000. The minimum for a blanket is $50,000 per property. 

 The property valves are approximately $220,000. The portfolio loan amount is about 3 million. Which is 61% of the value of my properties

Does anyone know if any good portfolio lenders that lend in Minnesota? I was going to use lendingone but they will not allow me to place the property into a land trust after closing. I'm doing a cash out refinance of about 20 properties and the loan to value is between 60 and 65%

Thanks

Let me tell you something!!  Last year my management company wanted to wean me of subsidized rent.  Their idea was that if I had better qualified tenants with higher credit scores, no felonies and higher income that they would stay longer with less headaches.  

Since 70 percent of my units are subsidized with multiple vendors, the current situation is not effecting me much financially. Most of my mortgages are paid from the large deposit I received from the subsidized rent.  I am getting new section 8 inspections scheduled within 3 days of my request for tenancy.  I am actually cold calling section 8 prospects and pre screening them.  So far I have filled 5 or so vacancies by cold calling.

I don't treat tenants that have their rents subsidized any differently than anyone one else.  Tenants are masters of psychiatry.  One they learn what the learn what the landlord with let them get away with, they will keep doing it.  If you come of as passive they will find an opportunity to get over on you.  

Screening is great to determine what people have done in the past.  But it won't determine what people will do in the futures.  I don't care who you are,  when money gets low the first thing people do from all walks of life is not pay rent.

I guess I need to go back a little further.  I have a bunch of duplexes in Minneapolis.  I pay the water and trash and bill the tenants in the duplex each half of the bill.  I didn't care what the water usage was because I knew I would just divide the bill in half.  I think 6 or 8 of the units have washers and dryers. They were in the units when I purchased them.  The water bill for the units with the washers have always been higher than those without.  

Recently the management company was audited.  They informed me that I just can't divide the bill in half.  I have to come up with a fair way to determine water usage by using square feet or number of occupants.  I was ok with that. But they told me to do that it would be an extra charge per month per unit.  I was looking at an extra thousand dollars per month just to do calculations to determine fair water usage. 

So instead of doing that,  I just increased the rents when the lease ended to cover half of 1/12 of they average annual water bill.  Some duplexes were 200 per month for the building and some were 300 and up.  For most of my buildings this increase is working out. But for some of the units with the washers,  they are sometimes more than what I factored in during the rent increase.

So my question is regarding my actions as the tenants move out or I renew their lease.  My plan is to put coin operated washers and dryers in their units to replace the free ones.  That being said. Could their be a potential issue with me charging them  to wash and dry clothes in their unit, while also using their gas and electricity. I was also maybe thinking about letting them get their own dryer while just charging them with a coin operated washer  I am looking for any suggestions.

Thanks

Please elaborate on the problem.  I removed the non coin operated machines.  The water bill was getting high.  It was actually more that what I increased the rent by to include the excess water usage.  The unit is vacant and I was going to put the coin op in after the tenants move in.  I am getting some good deals on washer/dryer sets.

Thanks!