All Forum Posts by: Michael Albaum

The refi process is usually quite easy, but most lenders don't like lending to LLCs...that was only in your title, but not in your post, so not 100% certain how you hold title.

Rates may be ever so slightly higher on a refi than on a purchase, but nothing significant. The better your credit, the better your terms. Yes, most lenders offer refi products, but you'll want to find one that works with investors and has investor friendly products. 

Hi BP,

I'm looking for some great recommendations for cost seg companies that are nationwide or do work in Cincinnati OH. Thanks so much!

Look for a hard money lender or a portfolio lender. If there is enough equity in your primary and your investment property, a lender may be willing to blanket all the properties under one note and also lend on the new purchase. You should uncover every option you have. Local lenders are more likely to give a portfolio loan, so that's where I'd start. If you can't qualify for financing, maybe bring in a partner who could qualify; you supply the deal, they supply the financing and you come up with some kind of partnership agreement. Hope this helps and good luck!

Hey Joseph, I think you nailed it. You guys can be partners on the deal 50/50, or whatever you agree upon, you bring the money, he supplies the labor and when you cash out refi you buy him out at an agreed upon price. Or even simpler, don't make it a formal partnership, but simply hire him for the labor and construction at an agreed upon price and you can incentive him based upon a higher ARV upon appraisal. If the property appraises for higher than you thought, he gets a cut. That way, he can get paid for labor and you can own and hold RE. Hope this helps!

Hey Theresa, I'm not sure if you mean to not include a down payment on this, but are you able to find a lender who will give you 100% of the cost of the purchase at 3.7%?! That's pretty amazing if you are. Also, on a property of that size and seeming age (1920's build?), I would estimate the monthly repair costs to be closer to $100+/mo. I also don't see a property management fee built in here. Even if you plan to self manage, I would include it in the estimate to ensure that the property will support management if someday you decide not to self manage. Lastly, I don't see any utility expense here, are there separate meters for everything including water? And who pays for trash and sewer? Hope this helps and best of luck!

Hey Igor, since it's not an absolute NNN as there are still landlord responsibilities, I'd assume a small cap ex reserve dollar amount off the NOI. Since it is NNN obviously the NOI is going to be the rent and use an inflated cap rate since there are only 6 years left on the lease. Best of luck!

Hey Joshua,

Going the commercial route is often a great idea because the lender will look at the property to support the loan, not necessarily you as the borrower. However, they are still going to expect you to put down at least 20% as a down payment. So you may need to look to friends/family/partners to come up with the down payment if you're strapped for cash at the moment.

Best of luck!

Michael -

Hey BP,

I’m looking for recommendations for insurance carriers and agents in the Cincinnati OH market that knock it out of the park for multi family properties. Any and all recommendations are appreciated.

Sure thing! I have both of those as well and I really like old republic. I also have choice home warranty which I wouldn’t recommend to anyone. But unfortunately they’re the only game in town for one of my markets.

If you're using your primary as collateral for the new loan, your primary will remain as collateral until the mortgage is paid off. Why are you not wanting to keep your primary as collateral for years and years? If you're purchasing property, you want to make sure you're not going to default on your mortgages, thus it shouldn't be of any concern which property is being used as collateral. 

Also, a typical BRRRR is where you buy a fixer upper, do the rehab on it, rent the property out so it is performing, refinance all or most of your money out of the property because now that it's fixed up and rented it should appraise for more, and then repeat the whole process over again.

Best of luck to you!