All Forum Posts by: Michael Masters

Thanks all. In my case I’m using an agent and he’s bringing me off market properties so the seller is still paying a fee but maybe it’s lower? Maybe they just want to know they are getting properly vetted buyers. Thanks again for your thoughts.

While I haven’t done this yet, I have included an opportunity to get a loan out on my car as another way of raising cash for my next purchase. I think it’s a great way to access a cheap loan.

I’m an OOS investor from neighboring CT, just purchased a MF in the North End. Looking to do more in Boston eventually. I can’t attend this meeting but may be interested in future get togethers.

I decided to use a Property Management team for my recent multifamily purchase and glad I did. Their knowledge of local market and how to get the highest rents will pay the fees with ease. That said, they are charging me a very low percentage so easy to overcome the cost. I would echo learning from a professional manager before venturing out on your own.

As somewhat of a newbie to REI I’m curious as to why a seller would want to sell their property off market? What are the advantages? It seems to me the more people who see your property the better, so why limit the audience?

A link to loan requirements, feel free to ask questions:

http://www.freddiemac.com/multifamily/product/pdf/small_balance_loan.pdf

Also, I can message you the firm I went through if you wish to talk to someone.  I don't think I'm allowed to plug the firm openly according to biggerpocket rules.

Originally posted by @Brian Karlow:

Thanks for sharing the Freddie Mac details Michael M.  Did you go direct to Freddie Mac for this loan?

I did not go directly to Freddie and I don't think you can.

Important to go through a firm that understands your situation and has dealt with it before.  The first person I tried told me I was crazy for buying a property at such a low cap rate (my cap rate was just below 5%) and I wouldn't be able to get a loan.  He said this even knowing I was putting down about 50%.  Anyone buying in a top market knows these cap rates are standard these days (which is why most people stay away and invest elsewhere).

I'll post a link to requirements to qualify for this particular loan.

You don’t mention size of loan, fees, or points. These all help determine how good the deal is. However $1300 seems decent. Rates are expected to go up after this fed meeting and twice more next year.

I got a rate if 3.9% this summer through Freddie Mac. Here are the particulars: Loan of a little over $2m 5 year fixed with 25 year amortization LTV of 55% DSCR of 150 Property located in “A” rated part of Boston This is from memory, I can check details tonight.

I quickly flicked through this and it doesn’t bode well for my home state of CT. Here’s the CT ranks and forecasted price changes: 78. Hartford -1.05 88. New Haven -0.67 100. Stamford -2.87 I can’t say I disagree. In Westport (in area ranked 100) prices are dropping like a rock. Luckily I knew this and had made the decision to invest out of state because I don’t like Connecticut’s prospects in the near future. I’m sure more clever investors than me can make money in this local market, but as a newbie I would struggle. Connecticut’s biggest problem is it is losing it’s tax base. Personal income tax revenue down as Fairfield County struggles with loss of jobs in hedge fund Industry (the state’s 1 percenters). Corporate tax is lost as big companies like GE continue to move out of state. I love living here, close to NYC, close to beach, close to lots of good things but wouldn’t invest here right now. Like I said, better RE investors than me can make money here but not me.