All Forum Posts by: Matthew Saskin

 Bingo!  I can (and have) done this before.  That said, I've agreed to sale contracts where the potential buyer had the ability to provide input into tenant screening requirements, lease duration, and rental price.  I won't cede full control of the process over as that puts my business at risk until the moment the deal closes.

 All of the MFH's I've purchased in NYC are single water meter, so I've been responsible.  Never had any major issues as a result, just factor it into your calculations/pro-forma to analyze for the added expense appropriately.

As for what that expense is, it's all market specific of course.  I can't comment on anything outside of NYC, however there I historically run around $100/unit/month for water & sewage - that's for typically a 3b/1ba apartment.

100% dependent on your personal goals, the market, etc. Speaking personally, if my initial pro-forma doesn't show me making at least $150-200/door/month (and that's with super conservative expense assumptions, reserves, interest rates, etc.) I pass without giving it a second thought. May be a bit myopic, but for my goals, it's worked thus-far. Also of note, I don't invest in SFH, period.

 First recommendation - find a new mortgage broker.  Anyone that tells me they can't justify something to their underwriters is someone that's not actively working on my behalf, in my opinion.  PM me and I can put you in touch with some brokers I've worked with in the past.

As for purchase under residental vs. commercial mortgage, that's a whole different discussion. For only a single property (single duplex, etc.) I can't give any good guidance as I've never done any commercial deals that small - all of mine have been for blanket loans across multiple properties (eg; 10+ units) or single high value properties (eg; 4 unit/1M+ properties in new york). You are correct that in most cases, any commercial loan to a smaller/not established LLC is going to be personally guaranteed by you - that said, these still don't appear as residential mortgages on your credit report, so although you're guaranteeing the loan it won't appear as a mortgage (or any debt for that matter) on your credit report. Also correct on the down payment - my experience with using residential loans for investment properties has always required 25% (or more) down - on the commercial side I've usually been able to do 80% LTV depending on the market.

 The two most recent commercial loans I did are:

750k @ 80% LTV, 20 year amortization/6 year term, 4.25% fixed rate

1.4m @ 70% LTV, 30 year term fully amortized, 4.375% for first 6 years (maybe 7, can't recall), annual adjustments thereafter

 They do fund loans in NY - the property I'm working with them on right now is in Brooklyn.  You can likely just get in touch w/ BCB directly.  Certainly don't need to run through a north carolina mortgage broker for it.

My .02c, you're SOL. Either accept the risk or kill the deal.  You're always free to ask for some concession, but if I were the seller and you didn't obligate me to anything, I'm going to keep running my business as-is in case the sale falls through.

Incidentally, I always add an addendum to my purchase contracts requiring the seller to seek my approval for any tenants for vacancies or renewals that come up during the sale period.  Likewise, I have agreed to such terms when I've sold properties.

I just wrapped up two commercial loans for similar properties.

One is 80% LTV on 750k, 20 year amortization 6 year term, 4.25%

The other is 70% LTV on 1.4m, 30 year fully amortized, 4.375% fixed for 7 years, readjusts every year thereafter

 A group of them were handled by Citizens Community Bank, based out of virginia.  Another group was handled by BCB Community Bank in NY/NJ.  Both of them were run through a mortgage broker I utilize down here in Raleigh.

Bingo. MLS listing depends a lot on the area, but the rest of the expectations are the same. I have realtors manage all of my leasing in both North Carolina and New York. In NC, I pay a fee of 1 months rent for placing a tenant. In NY, some of my properties I pay a 1 month fee, others the tenant pays the fee (but that's a market-dependent NYC thing).