All Forum Posts by: Michael Leffelholz

@Account Closed You can find lenders who will refi loan to LLC but you really should focus on small community banks or as others have suggested perhaps local credit unions. Generally terms will be a bit more stringent. My partner and I bought property all cash. After completing some improvements we deeded to an LLC and were able to refinance and recoup some of our initial equity. Best of luck.

Michael

Hi @Ana Haynes-welcome to BP There is   a lot of great information here and plenty of people who are willing to help and offer advice. Sounds like you are off to good start. Can you tell mme a little more about the process of converting your two-family to a three.  What kind of municipal approvals did you need? What was that process like? Continued success.

Michael

@Karan Narang

 You've gotten some good investor friendly realtor recommendations so I will give you a lender recommendation. I highly recommend Millington Savings Bank.  They are in the Basking Ridge area but I believe they will go statewide.  Best of luck.

Michael

@Travis D. I don't know if they go to Monmouth area but McAulifffe Contractors  in Kenilworth NJ. They were involved in large structural project on old home in Westfield, NJ. I called them to look at giving me an estimate for two family in Morristown, NJ.  That had some issues. Never used them because we couldn't come to terms with the seller so contract fell through on inspection issues. Would have used them as they seemed pretty knowledgeable. Hope this helps. Best of luck.

The 8 family puts you into the commercial space. In the multifamily sector I routinely see loan terms of 7-10 years with amortization based on a 30 year schedule. Rates currently are often sub 4% maybe low 4% range. Banks will lend up to 75% LTV. More often than not the loans will be non-recourse with the Borrower being a LLC. As @Derek Carrollstated the loan size is small and lot of banks will not be interested.

@Account Closed Welcome to the site Igor. There's lots of good info here and you will learn a lot. Unfortunately our market is very expensive. While prices in Newark may seem like a relative bargain its likely for a reason. While there probably are pockets that are ok you would be better off starting somewhere else. Have you looked at all in Union City. It's close buy and a pretty good rental market. Best of luck

@Helen Kolton

 While I can't specifically help on cost estimates I think that you need to provide a lot more info. I installed French drain in my home about 15 years ago as I used to get some water seepage-nothing to bad. My recollection is that it was about $2500-$3000. Also make sure everything drains away from foundation. Is this a single family or multi? Was the basement a legal apartment? Is area zoned for multi? How many bedrooms and bathroom? What are the expected rents. If multi are utilities separately metered? Is the house comparable in all respects to the one that sold next door? By the way where in Middlesex is home located?Sorry couldn't be more help. Best of luck.

@Dwayne George Looks like you did well on your purchase. You took the first step which is arguably the hardest. I would question why your attorney did not ask for a copy of the lease during your due diligence. I am also curious about the low purchase price compared to property next door.  Anyway seems like you're off to good start. Best of luck.

@Corey Demuth

Corey, there are lenders out there who will lend to an LLC for 1-4 family investment property. Your best bet is to find a small local community bank that holds the loan in its portfolio. While I'm not in the NY market (other side of the Hudson) I was able to find a small savings bank willing to lend to an LLC for a 50 BP premium in rate and they offer the same options as they provide for owner occupied units. The one option offered that I found attractive was what they called a two step loan with rate fixed at 4% for 1st 10-years (30-year amortization) and after 10-years rate increases to 6.25% for remaining 20 years. Oh-and they will do up to 80% LTV. My only point is there are options with some digging as many of these banks might be off peoples radar. Like you I didn't want to deal with any of the shenanigans of buying and financing personally and then trying to deed to LLC risking the potential due on sale trigger. Best of luck

Just curious if you have actually done this. I was wondering what the bank said when they found out that the named insured was no longer the individual to whom they originally made the loan.nut rather an LLC. Since the bank is named loss payee it seems certain that they would find out. Thanks

Michael