All Forum Posts by: Meghan McCallum

Time to swoop in and pick up even more SFRs

Jenna,

That's a really complicated question. Did a large employer leave the area causing many to lose their jobs? Perhaps many people's balloon loans have expired. This is a question best suited for a real estate professional in your area. It could be a wonderful opportunity for you.

@Michael Le that is absolutely what I meant! The series thing threw me fore a loop because when I asked the loan officer if she wanted me to create subsidiaries from my parent company she said series were different. I don't know. I will report back when I do, but what you said makes perfect sense. 

Thanks for your help!!! I Love BP!

Nice @Damian York,

Are you in the area now or did you do all that from Seattle???

Hey guys,

Just wanted to let you know that what people are saying on here is right. YOU NEED TO HIT UP A SMALL LOCAL BANK. The loan officer told me that loans wouldn't be a problem up to $1M! after that...it would just take longer. They said they would do cash out loans, the suggested becoming an entity (LLC),

The just want:

LTV- 25/75

DCR- 1.25

They will write a 20y loan with 3/4/993, 4/5.243, and 5year/5.493% loans

She also suggested that the LLC hold each property as a separate "series" I don't quite know what that means, but...I meet w my CPA tomorrow and will tell ya more.

Good luck all!

@Celine F, @Nick B., @NazzWang

You guys,

Thank you so much for your time and insight. ALL of you made some great points. I think before I go jumping into this property, or any for that matter, I should feel comfortable with it. This one just doesn't feel right. And after taking your suggestions and running them...its not a good investment. This is all great info to chew on for my next analysis.

Great! Thank you!

Hello BP,

I was presented an offer today that I walked into without warning. While introducing myself to some local commercial real estate agents I mentioned to the oldest member that I was really interested in an opportunity for a 20 something multi unit property with seller financing. A little bit about me...I have a sizable amount of cash, but what I'm learning from this site is that its better to use less cash to score deals if you can. After talking to the team about what I was looking for he came back to me and said that he had actually been looking to sell his property and that he would finance it. Here are the numbers:

27 Unit Mixed property

                                             #        /ea         /m total

Efficiency Units    10 @  $410    $4100

1 Beds                 11 @  $480    $5280

Loft Efficiency      2  @   $600    $1200

storefronts 1             @  $900    $900

                   2            @  $300    $300

                   3            @  $500    $500

                   4            @  $800    $800

        Laundry            @  $370     $370

                less vacancy     4%    -538

                                 Monthly      $12,912

                                   Yearly       $154,944

Yearly expenses 42%   (-64,907)

Net Yearly income   $90,037

What price would you pay for this property?  Would you pay more because it is seller financed?

I'm going to sit down and read more into this, study local rental rate a little harder, but in the meanwhile...an opinions?

@PatWilder,

The meetup group doesn't look all that active. Have you been to any of their prior events?

Despite owning a few properties already I'm a total NOOB. What are yellow and white letters?