All Forum Posts by: Ryan Morrissey

Hi ya'll, looking for a lender for cash out equity loan on 2 unit Multifamily in Norwich, CT. Property is valued around $170,000, owned outright by LLC. Looking forward to hearing from you.

Hi, I'm looking to connect with anyone operating midterm or seasonal rentals on North Fork LI. I have a beach house in Town of Riverhead where STR is not allowed. Just getting out an LTR who hasn't paid in 18+ months hiding behind ERAP. Looking to see if 30day rentals will work for my property and what the pros and cons are.

Looking to purchase a property that needs some foundation rehab (and interior updating as well) and looking for financing advice.

Normally I would aim for 2nd home conventional loan (it will also be my family’s vacation home) and then refinance after the rehab to pull most of my investment back out.  However previous buyer’s bank backed out when foundation issues arose, so conventional lending may be a crapshoot, and don’t want to waste more time.  Plus ideally I would prefer having a loan cover costs for the rehab.


Don't think I can get a commercial loan on a SFH.

Any purchase plus rehab loans that roll into a refi for STRs currently on the market?

What would you suggest?

Purchase price: $225k

Structural rehab: $60k

Interior updating: $15k

ARV: $375k

Projected STR gross revenue: $45-$55k

Thanks in advance.

Quote from @Chris Seveney:

@Ryan Morrissey

Why add them to LLC as a partner and not just take a loan from them and record a mortgage?

If they are being added to LLC it's not a loan but now they have a % of ownership in the LLC and will need to determine operating agreement their ownership and then you technically could still finance the property..

My goal is to have them foot the investment capital and I supply the sweat equity and we share ownership of the property.  Some of my potential investors could qualify for a loan but cannot afford to purchase in cash.  With as difficult as the market is or if I was looking at a property that wouldn’t qualify for a conventional loan, I’m trying to come up with an angle where I front the cash purchase, but then recoup my capital and have the investor carry the loan.  Then we share the property where I manage it and they receive passive income.  Does that make more sense?

If I were looking to purchase a property with cash through an LLC and get it cash flowing with LTR or STR (depending on property). Then, have an investor refinance the property with their financials while being added to the LLC as a partner and they pay me the principle back directly, so essentially they are funding the purchase once the dust settles and my initial investment is paid back (or close to it). What's the best loan to approach for this scenario? Classic cash out refi? Are there any lenders willing to leave less than 20% equity in play (ideally 15% or 10%)? What potential hurdles do you see with this approach?

If this is your only your FIRST deal, just keep in mind that $400/mo you calculated could well end up being $600-$800.  There’s a lot you may end up being surprised by, so just be cautious. 

Quote from @Suzanne Player:

Our investing group is meeting very soon & the topics include information New York landlords should know.

 Thank you, how long do the meetings tend to run?

Quote from @Andrew Jennings Freerks:

@Ryan where is your property located? I have an eviction attorney I can recommend in the city. What type of asset is it (condo, coop, SFR, MF?)

Thank you Andrew.  His eviction warrant has already been served, but in NY that no longer means anything.

Quote from @Suzanne Player:

Ryan you need to get legal counsel immediately you are not powerless in this situation.  The sooner you act the sooner this is resolved, & time is of the essence.  Don’t make any assumptions about the  COVID programs’, have your attorney look at it the statute in light of your particulars.   You’ll need to get them a copy of your lease with this tenant.  

If you don’t have any attorney already that you use, ask around for recommendations and meet with at least 3, most attorneys will do an initial consultation for no charge, just ask about it.  You can (and should) ask about their fees in this meeting.  It looks like you’re in New York City, there is no shortage of landlord tenant counsel there.  

Thanks for responding Suzanne.  Property is in Suffolk County, Long Island.  We already have a judgement for monies owed and warrant for eviction against the tenant.  Warrant was served.  Tenant applied for ERAP AFTER the judgement in mid-march and now the Sheriff's Office will not evict until ERAP application is denied, which will take 3-4 months most likely, minimum.  NY has completely turned their backs on landlords and our hard working tax dollars.  You say we're not powerless here, but it certainly seems that way.  It's a disgrace.

Does anyone have any collections success stories or organizations to recommend?  Our thieftant is taking advantage of NY’s asinine Covid anti-landlord stance and currently owes $33,000.  He is a “freeload….I mean “freelancer” so wage garnishment I don’t think is in the cards. He is still in the property through ERAP protection (he registered 2 weeks ago even though they ran out of money October 2021).  I doubt we’ll ever see a penny but maybe some of you can help.  Thanks.

PS Never ever invest in NY