All Forum Posts by: Percy N.

Keep in mind that anything over 4 units will be considered commercial and you cannot owner occupy it and ask for a FHA loan with 3.5% down. For 5-100 units I would approach a local bank that does portfolio lending and speak to their commercial division. LTV will be lower and rates a bit higher. For 100+ units, talk to a lending broker who has relationships with several lenders who offer various types of loans including agency, CMBS, bridge, etc.

It definitely is good value and will be a good tool for a quick analysis. There are more detailed models out there and over time you may even create your own. At the $99 price point, you can go wrong with it, even if you use it to practice underwriting. There are a few assumptions in the templates I would recommend updating and formulas I would change (e.g. the way the Acquisition fee is calculated in the template is not Industry best practice, IMHO). We used it to underwrite several dozen properties before getting something a bit more sophisticated.

@Alan DeRossett, I believe Tenantcloud, Cozy.co, etc have good tenant portals as well.

It sounds like to you have a similar background to mine, so you also probably realize the true cost of implementing and maintaining a system such as that. Only you can be the judge of whether that is time and resources well spent/invested or whether to use a COTS product.

Alan DeRossett are you looking for free software or open source (you will get the source code and will have to maintain it? Try TenantCloud. It is free up to a certain number of units and has good functionality and easy to use IMHO. There are other software programs too but they generally have a higher fee. You may want to create a list of must have features and them do a bake-off

Sergio Fetter , as an investor in several syndications, I will say that most investors are skeptical of cold calls. The best chances to get them to invest is via an existing trusted relationship or referral from a trusted source. You can form these relationships locally via meetups and other events. Have you considered partnering with a cosponsor who may have these relationships already? Good luck!

Laurent Feral , banks that sell the mortgage to Freddie or Fannie will not issue a residential mortgage to an entity. However, local portfolio banks who don't sell to Fannie/Freddie, so they will lend to LLCs at a slightly higher rate than a large bank.

Peter Kim , if it is not a REO, have you looked into an automatic escalation clause where you bid say $500 more than the current offer (not yours), upto a certain limit. BUT you state that upon acceptance of your offer, seller will need to disclose the second best offer. I have used this tactic before and amazing how some scenarios magically change. If you really want, start at a lower price than your previous offer with an escalation to your best offer in increments of $500. The agent may try to push back on this but tell them they are legally supposed to present the offer to the seller and you will make sure the seller knows of your offer. If they are playing games, it will backfire on them, if not, you are still in the running. Good luck!

Thao Kieu , great story and even greater success story. Don't give up, you can find a lender. Are you speaking to traditional banks or local portfolio lending banks? Have you approached true private lenders (via a REIA, etc)? Consider doing a flip or two to enhance your cash pool then buy at a low LTV for cash if needed. Be careful of those who claim to be private lenders online.

Charles Frederick it is interesting that South Florida investors are looking in Philly and Philly investors are looking in FL; guess the grass does seem greener on the other side. Do you have an area in mind? Like many cities, the neighborhoods and prices vary vastly. What are your investment and purchase targets? That might help choose an area.

James Perez city gate is a big one in the area and I think capstone may also consider it. Not sure about the min number of units they will manage since we have been looking at 200+ units.