All Forum Posts by: Nicole (Dunlap) Pendergrass

I'm not familiar with Bay area either, but I'm in another high priced market (NYC) and I've never heard of banks requiring 25% down for 1-4 family properties, esp if you are living there! 4 units is still considered residential

@Isuf Aruci There are also conventional loans that let you put down 5-10% (just in case you weren't planning on living there). But your question was basically put less down and pay PMI or put more down and don't pay PMI. Like some of the other posters said, it depends on what you're looking for. PMI on my 3 family (bought last year) is about $300 extra per month. If you are looking for cash flow, that will hurt it a little, but may not kill the deal. I would compare your cashflow with and without the PMI and compare your cash reserves with a low DP vs 20% and see which scenario is the lesser of two evils :-) It may be that even after a 20% deposit you still have enough money to buy another multi (if that's your goal).

The problem isn't doing the lease with an option, its finding a seller who is willing to sell with that method. In NY everyone wants top dollar and wants all their money upfront! If you're good with negotiating you might be able to get someone to see the benefits... I'd love to get another property that way too.  You might be able to find another investor who rehabs and resells on a Lease Option, but then you'd be paying a premium (I also haven't seen that for multis, normally singles/condos).

@Cris Agui Did you find another multifamily yet? Interested to hear  how you do with finding a way to finance the next one!  I'm currently wracking my brain to figure how I can buy another when all my money is tied up in this first one (esp since I'm no good at raising money, etc).  Good luck :-)

Yeah thays what I did... I bought a 3 family house in the Bronx with FHA and I rent out to of the units. Been a very thorough learning experience and its gives me a better idea of how I'd want to manage future properties I get :-)

Great plan!  I'm not sure if banks do HELOCs on co-ops, but it wouldn't hurt to look into it. Otherwise you might have to sell it to get the downpayment for the multifamily (if you don't already have it saved).

Welcome! I love your enthusiasm and willingness to learn and help out to get experience :-)

There's a Bronx Meetup tonight at 6pm. If you can make it that would be a great place to start networking http://www.meetup.com/The-Bronx-Real-Estate-Network/events/229411845/

@Elvin Garcia it starts at 6pm http://www.meetup.com/The-Bronx-Real-Estate-Network/events/229411845/

You should go to as many meetups as you can to find investors who are looking to purchase commercial. There's a Bronx Meetup this Thursday here: http://www.meetup.com/The-Bronx-Real-Estate-Networ...

  If you just want to bird-dog the deal to another investor (or assign it if you have the means to get it under contract), you can let them know what your fee is and negotiate it if needed. If you really want to learn and not just hand it over and walk away, maybe whoever your buyer is will let you tag along and help with the details of the deal - analysis, inspection, closing, rehab (if needed), and anything else they do to turn the building around (if it's underperforming).  If you are in a position to raise the money yourself to do the deal, you would normally work your Acquisition Fee into your numbers.

Good Luck!

Depending on the financing she is using, they may not allow her to purchase in the LLC. She might have to purchase in her name and then transfer ownership to the LLC afterwards. As long as you mom can qualify on her own (with her credit score), I don't think adding you to the loan application would hurt even though your score is not good (but I would still double check that). If your mom is ok with you owning half the house but not putting any money down then you should be fine. As long as your mom has the full down payment I don't think the bank will require you to put money as well. But each bank/loan program has their own requirements so you should also double check with whatever loan officer is submitting her application.