All Forum Posts by: Rudy Manna

This is excellent idea, we did a few BRRRR with rate-term re-fi because of the seasoning limitation of cash out re-fi. Do you know if the bank's re-fi costs are par loan or is it aggregate for all loans? Any pointers on banks that do such loans?

The partner in the LLC brings other value such as finding the deal, executing the deal. The partner offering his/her credit is usually a passive partner. That way it's a win/win.

We have several people who want to do JV with us. I heard people who structure the loan such a way that the back-end loan after the initial bridge loan is under the passive investors credit. Basically the property will be a 50/50 JV between the LLC and an individual. The loan will be a recourse loan under the individual's credit.

Do anybody have success setting up such structures with regular mortgage loan? Some people suggested to get into a regular 50/50 loan as an individual and then transfer your share into a LLC. Don't want to do this since this is borderline illegal, and comes with risk of mortgage recall.

Thanks in advance.

Got a few mortgages, and looking into more. However, every-time during mortgage there is a hard credit pull and 5 point impact. So when I am looking into 5-6 mortgage this year, that will send my credit score down significantly. Anybody figured out work around this issue? Do any lender reuse credit ratings, over multiple loans? Or, are there portfolio lenders who don't do a credit pull.

Any suggestions?

Time for a new year resolutions. Goals, Teamwork, Actions..

But, the economy has peaked, or pretty close to it. Mortgage rates are pretty sure to go up. All the recession signals are flashing - high flipping, booming real estate seminars, low affordability. Prices may stay flat, or reverse to a declining trend in 2017-2018.

So, how do you all action oriented RE folks hedge the recession risk? This is what I am doing:

1. Focus on BRRRR predominantly..that way if the prices go down, I will be losing my equity-profit only, not my shirt.

2. Aggressively diversify to non-RE asset class. I am opening discounted retail stores which are recession resistant.

3. By end of 2017 get into HML, which is lot less risky. My primary channel will be tech platforms such as realtyshares.

4. Aggressively contribute to 401k, which is bankruptcy protected.

Love to hear what you are doing?

20 BRRRR (in) Tacoma

We are gearing up for a new type of rehab project, renovating a retail store space in downtown Seattle. We are designing the place for a beautiful storefront where we will launch an ethnic cafeteria. The space is 1000 sqft feet, square and open. Anybody have experience on how much the floor and ceiling drywall might cost, even ballpark range. 

1. What are the options for flooring that might give high end, bright and attractive  look. I looked up marble but those are like ~$20 sqft total.  Looking for beautiful but some-what cheaper options.

2. Rough idea of ceiling dry-wall costs?

 I am not trying to make a determination on how much they should be paid.

All I am trying to understand is that if I am paying above market rates, i.e, what others are paying.

On another note the appraisal rates were $400-$500 in 2012, which almost doubled in 4 years, so they aren't tracking CPI isn't right. Whether its enough or not is another question.

@Ben Lukes 

@Alex Chin

Which banks are you using?

It seemed high to me as well. Bank tells me it just went up few weeks ago. 

Looks like SFR appraisal costs are through the roof in Seattle area. I am financing two houses (SFR) in Pierce county and bank appraisal costs for each house $1k. These are regular non-expedited appraisals.

Want to hear peoples experience from the area.