All Forum Posts by: Michael B.
Michael B. has started 12 posts and replied 26 times.
Quote from @Bob S.:
Quote from @Michael B.:
What up guys. So I just bought a 8 unit building for 1.3 great deal 9.8 cap rate. But I owe my LOC 500k now. I'm trying to find out how much money can I pull out from the 8 unit which is now valued at 1.7 million. I want to pay back that LoC cause I'm getting smash with the interest at 8.5 percent killing me.
net
10% net or gross ?
Post: Florida - Market risk with insurance providers jacking up rates or leaving...
- Posts 26
- Votes 2
Quote from @Ray Hage:
Hi, as an investor, it is a major risk for sure and I am a bit worried. That being said, I still plan on investing in Florida (I have properties in Fort Lauderdale and West Palm Beach). It could be the one thing that destroys the FL market. Do I think that will happen? No but it is certainly a possibility. More likely, it will be lower profitability in the future. That being said, I have faith in this market and people are still moving here and need somewhere to live. So on a 1-10 scale, my concern is in the 3 range. We have to see how it plays it out over the next couple of years.
Quote from @Dennis Muno:
Hello Michael,
So how long ago did you buy the property? What kind of loan on the 8 unit property do you have? It should most likely be a commercial loan. Depending on the kind of loan there is usually a period before you can do a cashout refinance.
Is the LOC for $500K on another investment property?
How much cash you can pull will depend on how much the liens(loan payoff) on the 8 unit property are vs the $1.7M property. Your FICO will matter, as well as the cashflow on the 8 unit property.
Quote from @Dennis Muno:
Hello Michael,
So how long ago did you buy the property? What kind of loan on the 8 unit property do you have? It should most likely be a commercial loan. Depending on the kind of loan there is usually a period before you can do a cashout refinance.
Is the LOC for $500K on another investment property?
How much cash you can pull will depend on how much the liens(loan payoff) on the 8 unit property are vs the $1.7M property. Your FICO will matter, as well as the cashflow on the 8 unit property.
I took over the loan on the 8 unit at 3.7%. Building makes 174k year. Noi 146k
Quote from @Ray Hage:
Michael, first, congrats on getting the 8 unit. It sounds like you're in a bit of a tough spot. Do you absolutely need to pull the money out now? 8.5% is a bit high on the rate but that's our current market. You could do a DSCR loan as well but I would bet that rate will be high also at the moment. Talk to @Ash Hegde as he is based down here and maybe can advise a little better on the situation and what kind loan and rates you can get right now.
Probably going to cash out Refi in the near future hopefully when interest dips a bit. So i can pay back my LOC. Nothing else i can do im stuck.
@Dennis Muno so i assumed 800k Fannie Mae 3.5%. The line of credit i took was for this property. Im most likey gonna cash out refi once interest drops next year or in future. While trying to make flips to pay off debt faster.
Quote from @Michael B.:
What up guys. So I just bought a 8 unit building for 1.3 great deal 9.8 cap rate. But I owe my LOC 500k now. I'm trying to find out how much money can I pull out from the 8 unit which is now valued at 1.7 million. I want to pay back that LoC cause I'm getting smash with the interest at 8.5 percent killing me.
What up guys. So I just bought a 8 unit building for 1.3 great deal 9.8 cap rate. But I owe my LOC 500k now. I'm trying to find out how much money can I pull out from the 8 unit which is now valued at 1.7 million. I want to pay back that LoC cause I'm getting smash with the interest at 8.5 percent killing me.
How to avoid your children paying capital gains tax on millions of real estate when parent die? Ive heard you can put a percentage of building in the kids names so it will automatically go to them both or a very good TRUST
Post: Im stuck i have a pretty hefty LOC nothing underwrites
- Posts 26
- Votes 2
The issue is find deals, but i also have to pay my LOC plus new mortgage so the number don't add up i keep going under water on the deals I underwrite. I pay the whole deal cash but i still have to pay like 16k month on interest for the LOC. So it takes my profit from the new building completely. IDK what to do can any one here give me a new strategy. Should i just wait it out for interest rates drop. I had found Property for 4 million bring in 420k gross NOI was 350k low expenses. The building made money but once i had to pay mortgage interest plus my interest on LOC i was just making it on 4 million dollar deal.