All Forum Posts by: Seth Mosley

I have a lender that will do 30 year amort, with a 15 year ballon. It's fixed for the first 5 years and no prepays. I can refer you if you would like.

Please do refer! :)

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@Michael Gomez is your man

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Thanks for the reply!

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Originally posted by @Roy N.:

@Seth Mosley

Here to your north the norm for a mortgage is a 5-year term - either fixed or variable rate - though terms can be as short as 6-mths or long as 10-years. Yes there is a balloon at the end, but you just simply roll your mortgage over into another as it approaches maturity.

In fact, our preference is for a 5-year, variable rate mortgage with conversion rights {the right to convert into a fixed-rate mortgage of duration equal to, or longer, than the remaining mortgage term. Our biggest frustration when looking at residential properties in the U.S.A. has been the poor selection of variable rate (ARM) offerings.

So Roy, you've never hit a wall with rolling your mortgage into another as it approaches the balloon? (refinancing)

Glad to hear this is a viable option if so..

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Wondering if any of you are Dave Ramsey fans out there. Myself and my wife have greatly benefitted from going through his financial peace book, and getting our personal finances in order, which has enabled us to invest more in Real Estate.

My question comes about his initial venture into real estate:

"In the 1980s, Ramsey was heavily involved in the foreclosure real estate market, and by the age of 26, he had a rental real estate portfolio worth more than four million dollars. However, he lost it all: the Tax Reform Act of 1986 brought about major changes in the real estate market and forced bankers to take a closer look at people they were lending money to – and Ramsey got burned. He lost everything and started over from scratch."

He says all of his loans were called because the banks were sold.

My question to all of you is, how is this even possible or legal? And can a similar situation happen again? All of my properties are leveraged under 30-year conventional fixed loans and I would be in the same boat if the banks called my loans.

Any thoughts?

+Seth Mosley

Mosley Properties

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Originally posted by @Justin B.:

I have 9 SFR's and all 9 properties are "commercial loans" with a 5-year call and amortized over 20 years. We just refinance every 5 years (usually sooner to pull our initial investment out and then some if we're lucky). Of course our goal is to be completely out of SFR's and in MFR's in and Commercial property in less than 10 years anyway. Since they are all in my LLC's name, we don't qualify for the typical residential ones. I doubt you'll find a commercial loan for a residential property that doesn't have a 5 or 7 year call. They might be out there, but you'll probably pay for it in points and interest rate.

Thanks for writing Justin. So you've never had trouble refinancing at all? No prepayment penalties or issues getting a refi? If refi-ing every 4 or 5 years is all it takes then that doesn't seem to be a bad option at all.

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Originally posted by @Frank Jiang:

Your profile says you're married. Any chance you can get 10 more loans in her name?

No, she would not financially qualify as I am the main source of income. Good thought though.

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Hey Guys!

This question comes from my search in finding the next stage of funding after I max out my 10 conventional 30-year Fannie Mae Mortgages for our rental properties. We've met with several commercial/portfolio lenders and I'm kind of finding the same things everywhere I look. The standard is that either it is an ARM (on a 5 year lock or sometimes 7) - or it has a big balloon payment due at the 5 or 7 year mark as well. I haven't found just a "standard" 20 or 30 year amortized fixed rate loan option, except for ones that are in excess of 9.5% interest rate, which shoots most deals apart in terms of monthly cashflow.

I am wondering for those of you out there dealing in commercial / portfolio financing, how do you evaluate a property for purchase with monthly metrics, when there is an ARM? (ie, how do you predict the future, to know what the rate increase "might be"?)

Or for those of you who do the balloon route, do you just count on refinancing before the balloon payment comes up due? And what if you can't? What then?

Thoughts or suggestions greatly appreciated!

+Seth Mosley

Mosley Properties

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All Forum Posts by: Seth Mosley

Seth Mosley has started 31 posts and replied 142 times.

Post: Getting Started and Sharing

Post: Getting Started and Sharing

Post: Commercial Loans / ARMHOW TO PREDICT THE FUTURE?

Post: Nashville, TN - Looking for an investor-friendly realtor

Post: Commercial Loans / ARMHOW TO PREDICT THE FUTURE?

Post: Commercial Loans / ARMHOW TO PREDICT THE FUTURE?

Post: Dave Ramsey / Losing it All

Post: Commercial Loans / ARMHOW TO PREDICT THE FUTURE?

Post: Commercial Loans / ARMHOW TO PREDICT THE FUTURE?

Post: Commercial Loans / ARMHOW TO PREDICT THE FUTURE?