All Forum Posts by: Matt Burr

I am looking at a couple of deals where I can get a commercial loan on the propertise. However I want to barrow the down payment from friends that are interested in investing.

I am pretty sure this is very possible but need a few simply answers to get out of the gate:

1) What kind of note would you offer to the investor?

2) What if anything guaranties the note?

3) I assume banks will likely require that they hold the first position is this true?

Any other thoughts comments or experience would be appreciated?

Thanks

Matt

Doing just that. Form a separate LLC owned by both parties LLC.

@John Teachout yeah it now looks like taxes reflect 2550

@John Teachout the new one is 2275. Which after measuring my house and comparing to it is correct. The original two literally added 15 ft through the center of the house causing it to be much larger than it actually is.

@John Teachout I am comparing measurements on the appraisals. The original two have a very glaring error. However six years ago we were moving from out of state so had only been in the house twice for showings so from 2000 miles away we couldn’t double check the measurements. The second one was online with the first so we didn’t question it then.

When we purchased our personal home the appraisal listed the SF as 3028 and was apprised and compared as such. 3 years later we refinanced. Again the SF came in at 2975 and was compared and appraised as such. We just went to refinance again because our market has been rising quickly and we wanted to fund some deals. To our surprise our appraisal came in very low. To be specific the exact same as when we bought it 6 years ago in a market that has been on fire ever since. 

After comparing the 3 appraisals and doing my own measurements it is clear the first 2 appraisals that were done by the same company have a critical measurement error. This error caused the house to be drastically overvalued both times. The first time had it been done correctly it should have never even made the purchase price level to finance. 

Now I am about sick realizing my house likely just took almost a 30% loss because of the bad appraisals. Has anyone else had anything like this? Is there any recourse that can be taken since the error is very factual and not part of the "opinion of the appraiser at the time"?

Thanks for any help in advance.

@Alex Bekeza I have a good relationship with a morgage broker but unfortunately he only does conventional. He has made some recommendation on how to get around the ten cap. I’m really more interested in being able to buy 4-30 units at a time and how to finance those.

@Jeff S. Thanks I suspected that was likely the case. Certainly seemed to fall in the too good to be true category.

I live just outside of Detroit and have been working on trying to buy deals in Detroit. There are plenty of Duplexes available but I’d like to get commercial units (over 4). The issue in Detroit is the values are not high enough to qualify for standard commercial lending.

An example was I found a solid fully rented cash flowing 9 plex for $245,000. I didnt have the full amount cash but had plenty for any down payment. I was never able to find a way to finance it before it was pulled from the market.

Anyone out there know of someone in Detroit to get in touch with to make sure this doesn’t happen again?

Does any one out there have experience with websites advertising hooking you up with private money lenders. Saw an add for privatemoneygoldmine.com and it glad me wondering if anything about it is legit or if there are other sites that are.

I am starting to run out of my ten conventional loans very quickly so trying to stay ahead of the game and come up with new was to finance deals.

Would appreciate any thoughts.