All Forum Posts by: Richard Sherman

"Hey, umm, there are guys with machine guns and DEA jackets kicking in the door of the downstairs neighbors...and I think a helicopter is trying to land in the street....oh and my boss is out of town so I am going to be late on rent this month"...in a voicemail...wish I was joking...falalalalala!

@Jay Hinrichs yeah...I had a conversation with Chase about this...they were pulling out of markets like Salem and wanted A class in Portland...I thought..hmmmm what could go wrong ;)   Funny since they bought WaMu which took it REAL hard last time with similar strategy.

@Kenneth Garrett I agree with @Jay Hinrichs and @Joe Villeneuve . Reserves are key and planning for an issue if you are stuck at a refinance cycle and are not able to get funding (the stronger your reserves and lower your LTV the more likely you are to get the loan.) We were much smaller last time, and everything was paid off at that point (we have since grown and used debt) but we keep 70% or lower LTV AT purchase so after reposition we are 50-60% LTV and they cash flow very well.

Rents went up in our market last time.  HOWEVER, the A properties had issues especially in bigger cities with lots of competition...and the only way construction of many of those deals in markets like mine (greater Portland OR) make sense is the higher rents...when they have to start making concessions and then have to refi...it will hit the fan...again...just like last time (just maybe not that severe.)

@Stacey Lauren That sounds amazing.  Any chance of doing airbnb type stuff there in the future?

@Stacey Lauren Sounds like a great plan!  I love that idea, live there a couple of years, figure out landlording then do another and another!

I would start the process on eviction and getting a judgment asap.  i.e. get an attorney who does these things.  OR I might talk to the son first and say "I am so sorry and really hope your father pulls through.  How can we best unwind this issue with the property?"  It could be they want out as well but are worried about logistics, lease break issues and fees etc.   It sounds like something else was going on though if his house was sold several months ago.

@John Brees 25 year term or 25 year amortization and shorter term?

@Chris Virgil-Stone we have done 3 (2 closed in past 4 months and 1 in process and will close in Feb) and all 3 have been between 900k and 2.4 million loan amounts, all with Opus bank out of Socal (through a local broker) all had 4.75% initial 5 year terms with a second 5 year term with rate reset and lifetime rate cap of 5.25% (both have 30 year terms, so when rate resets, amortization resets to a new 30 year as well...this is good as payment drops.)

75% LTV, 1.2 debt coverage ratio. We did a portfolio loan with a regional bank on 5 properties (1 loan with 5 properties) and had 4.65% with 5.125% cap but it was a year ago.

As others have mentioned, it can be hard to find anyone wanting to do under 1 million, but shop around, talk to brokers AND banks, especially local ones and credit unions.

@Alan Johnson I like the idea and something similar is used with timber and ag properties I think...sort of modified lease options where they don't actually control the property I do not think.

@Vincent C. You need to talk to an accountant/estate planner first.  Your mom could be in for a big gift tax hit if she does not structure this correctly.

I agree with many of the other comments.  I want to support an amazing site and podcast and this is a great way to do it..AND the tools (calculators) and forms are awesome!