All Forum Posts by: Ryan Weimer

Has anyone worked with Landshark Lending LLC before? I am getting weird vibes they are scammers and just want to do my due dilligence here

I am doing a 12 unit multi family new build apartments in Boise Idaho - The numbers are so good I'm using essentially a hard money lender to fund it because I can get 18% down (funding land acquisition and full construction costs).

The estimated time to complete the build is about 4 months. I am giving myself 6 as a buffer.  The units will be pre-leased so renters can move in immediately upon completion.  My question is - can I refi to a regular commercial loan once all the units are done and rented around month 7 or 8?  Or do I need to wait until the property is fully rented for 6 months seasoning aka a net 12 months from start of project?  Trying to estimate my holding costs here on the hard money loan.
Appreciate the help

We are buying an 8 unit multifamily in OR and our new property management company we are considering hiring is telling us billing the water back to the tenants is included in the 9% rent control maximum yearly rent increase.

I am skeptical of this because that doesn't make any sense to me... but I could be wrong.  I would think only costs associated with rent would be in that bucket.  Any one have any experience with rent control states and utilities?

@Jordan Graham you wouldn't be able to get a decent loan for these... and I think that would be a waste of that kind of capital. If cash flow is what you're after you can just go to a midwest market and buy 5 or 6 homes for that same amount of cash.  You'd have more cash flow as well as the potential for appreciation over time

@Jordan Graham not an expert here at all but I live in Encinitas/Coastal SD and would be shocked if you could find a remodeled mobile home on land for only 150k.  Perhaps you are meaning inland CA?

Beyond that - where are you getting the $4500/month guaranteed HUD rent from? Why would it be that high?

Not saying you aren't correct I am just skeptical about the numbers, but I could be proven wrong.

One of my friends was cleared to close on a refi on his primary and lost his job after being cleared to close.  He still signed and they asked the standard "did anything in your employment status change" and he answered no since the refi will save him $300/month and has plenty in reserves and no issue paying it.

I told him once he's cleared to close from underwriting he'd be fine, but I'm also not an expert on this specific situation and he is concerned there may be repercussions about lying.  Can anyone shed some light on this scenario?  Are there any negative consequences even if he makes payments on time?

@Matthew W. that sucks... on the other hand prices haven't really dipped yet so you should still have enough time to get cash out to capitalize. 

@Joe Splitrock this is a fair point... but I buy positive cash flow assets in the C to B range so I could care less about the short term. Rent in C class multifamily will still be relatively stable, not to mention if there is mortgage forgiveness granted by the government.  I can understand your point of view for flips which I would agree everyone should proceed with extra caution.

If you are asking me "would I rather have 60-70k equity upon purchase on a deal based on today's prices vs. wait to time the market on any kind of meaningful pullback (if there even is one in the real estate market)" for this asset class - I would say give me the bird in hand all day long

@Maurice Smith @Kerry Boyle I should have specified this earlier, I already tried to get him to carry it.  This is an off market deal I've been working directly with the seller since November and the seller wasn't too motivated to get rid of it to begin with, very apathetic guy and tons of deferred maintenance etc... didn't even know what his P&L stated.  Appreciate the advice though, I will definitely go down swinging here.

Not sure if I agree with the statement "in today's market, that 4-plex is going to be in less demand than before".  This is a C+ class property I'm getting roughly so I imagine it would fare very well even during a recession given the rent price point.  At least if we are comparing it to other asset classes.  But that's a whole different discussion...

@Jay Hinrichs 30 day hold for investment loans. They told me mine was still in process despite everything signed already days prior. I'm going to ask If I can get another 30 day extension but it's highly unlikely. We'll see what happens.