All Forum Posts by: Meredith Mihm

Quote from @Chris Mason:

FYI:

For the last little while, differences between this day and that are significantly greater than differences between this lender and that.

It had to keep myself from laughing at the dude earlier today who wasted a week on this (count backwards 5 candlesticks on the below image), and then called me a week later (today) expecting me to honor what I told him a week prior. 

Lock it up, stop wasting time. :)

Mortgage backed security sales prices below, 6 month chart. Stock ticker "MBB" is a mirror, if you have robinhood or etrade or whatever. As this continues to plummet, back-end profit for banks goes down, so they have to make up for it with more front-end profit out of your rate and fees. 

Nov/Dec and before, I was spending time comparing this lender v that. 

Lately, it's more a question of which lender can I register the loan with the quickest, before we get hit with yet another mid-day rate hike. And, how fast can I get that borrower to complete the online application so I have something to register, without them feeling too pressured.

BONUS NOTE: Interestingly, they keep re-scaling the vertical axis. See those "small" drops in November? According to the November scale (when I would look at this image in November), they were BIG drops at the time. But now, due to re-scaling, getting dwarfed by Jan/Feb, they look like "small" drops. According to the scale that was in place in October, those teeny tiny drops in October (today's scale) were also giant drops at the time.  So these aren't just rate hikes, they are literally scale-changing rate bumps, like when you stop measuring something in inches and start measuring it in feet or yards.  The fact that you switched units of measure entirely is the most telling thing of all, you're no longer talking about pounds of gravel, you are talking about TONS of gravel. 

Chris, thanks for this! I am a visual learner, so you're speaking my language.  I'm working on at least two other quotes, but from what I'm hearing on this thread, it sounds like I should at least try to get my 4.9 locked in while I still can! 

Quote from @Kurt Pauley:

Don't forget to try a commercial portfolio lender! 

 Thanks, Kurt, I definitely would have neglected to do that-- any recommendations? I haven't ventured into the commercial side yet.  

Thanks, Scott and Adam, I'm so happy to have a lead and not just feel like I'm shooting in the dark! 

Thanks, Tim, that's what I'm trying to do.  I guess it's kind of a trial-and-error kind of process, since it appears that you have to apply in order to get an idea of the options that are available.  I'd love to find a broker that could check multiple options for me, if you have any recommendations.  

Thanks, Nick, do you have any recommendations for brokers that serve Minnesota?  Thanks!

We're putting in an offer on a duplex in Winona, MN. Our normal lender just quoted us 4.9%, with 25% down on a 30 year. I'm hoping we can beat that! All help is appreciated! 

Welcome! Are you still in Winona? 

Investment Info:

Large multi-family (5+ units) buy & hold investment in Independence.

Purchase price: $195,000
Cash invested: $39,000

We're about to close on this 6 unit apartment complex. We have owner financing, and we negotiated with the owner to replace the roof as part of the purchase price. All units are a bit under market rent, and we are planning to add a 2 bedroom apartment to the attic ($700), so the cash flow will be $1400 soon, with rents raised a bit. We're also planning to add coin-op laundry in the basement, and possibly large storage lockers.

What made you interested in investing in this type of deal?

Cash flow, and the bones of this building. I like crappy buildings with good bones. This was a nunnery for the first 60-70 years of its life, and the church took good care of it.

How did you find this deal and how did you negotiate it?

My extrovert husband found it, and we negotiated by analyzing the way that purchase price and interest rate can be tweaked to make the same offer look different. We had many possible offers lined up, from 160K to 200K, at varying interest rates. But they were all more or less the same offer, when amortized out over the balloon period!

How did you finance this deal?

Owner is financing. 39K down at 3.9% with a 10 year balloon, amortized over 30 years.

How did you add value to the deal?

Plans: new roof, 7th 2 bedroom unit in attic, light reno. when units turn over.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Ray Hughes, our lawyer in Eau Claire, WI, has been amazing, and has walked us through all sorts of things, from negotiating, to contract details. Highly recommend.

Tell me I'm not alone... how many times have you clicked on "create post," when you meant to click on  "post reply?" That blue button at the top is just so enticing, and I delete my own replies regularly by accidentally pressing it...🤪🤔🤯

Originally posted by @Scott Schultz:

an LC is a form of owner financing, like any other, the seller retains the deed till the contract is fulfilled if you dont hold up your end, the seller has the right to the property back as liquidation for damages, just like a mortgage. 

Here in WI a Land Contract is looked at just like a Mortgage, I hold one on a lot I sold, and recently went down the road of determining my rights under the law, I am in 1st position, and if an action  is needed I would have to foreclose just like a mortgage, your state may be different, but the concept is the same. tax wise its the same, everything is pretty much the same, just that you are buying the deed over time

This property is also in WI (Independence). This is all great to hear-- thanks!