All Forum Posts by: Shuvrajit Mukherjee

@Shuvrajit Mukherjee - if you stay within the 4-unit range and owner occupy, then yes you have options at 10% down, even 5% down assuming credit, DTI...etc. You will definitely not cashflow while living in one of the four units (especially with such high leverage), so live in one of the four units for a year and make sure it's positive when you move out in a year.

For commercial lending in Chicago at this exact moment, the most aggressive I've seen is A&N that has 20% down options for certain scenarios. 

Hi Shuvajit,

Melanie is absolutely correct that unless you are living there and will qualify for some of the new mortgage products that the Feds just approved you will need a minimum of 25-30% down for the project.

Chicago neighborhoods are unique and have many characteristics that make them special. When you are getting a better idea of neighborhoods, let me know.

I think if that cost range is your expectation you should probably re calibrate the number of units in your building. Especially in the B/C neighborhoods you are going to also need to put in substantial upgrades to get things up to code most likely. You might have an easier time finding the classic Chicago 4-6 flats and starting to learn the unique quirks of dealing with City Hall first before trying to take on a really big property.

@Jeff Koval I have a fantastic property manager in Akron. He works in Cleveland as well but main base is in Akron. He is very familiar with STR and has taken on my Apt. building in Akron. If you want his info, PM me and I'll send it over.

@Shuvrajit Mukherjee ok, I'll answer this in 2 stages if you don't mind:

First, you can purchase a rehab a primary home with a traditional mortgage.  These mortgages work similarly to other loans in that you wrap the rehab into the new loan and make payments to your contractors in stages. However, there's one really nice benefit - no large downpayment.  So, where an investment property would need 20%-25% down...this loan would only need 5% down...or maybe 3.5% down...depending on what loan you use.  And since you are coming out of pocket so little...there's not really a need to refinance.  We refinance on our other properties to get that large amount of money back.  Here, you don't have that need since you didn't come out of pocket a large amount.  Now, let's say that in 2 years rates decrease....then yes, refinance.  But we aren't going to refinance and pay all of those closing costs again unless there's a real benefit to it.

Now, the second thing I would like to point out is that buying a primary home that needs NO rehab will also have a downpayment of only 5% or 3.5% down.  I'm saying this because your ability to choose a house is SIGNIFICANTLY higher if you just pick a house that's already on the MLS and you negotiate with the seller. Meaning, if you are shopping for a house right now...you're the only one doing so! Seriously, just about all the purchase contracts that we see these days have seller concessions on them. If you can just choose the right house for you, negotiate a good deal, and not have the risk of renovations....that's not a bad thing.

Hope all of that makes sense.

Quote from @Shuvrajit Mukherjee:

I am new to investment, and I want work on BRRRR strategy. I made my first purchase, rehabbed and now it's rent ready. But I find it very difficult to refinance without an LLC. I am here on H1b visa, and according to my lawyer, forming an LLC solely in my name will be seen as violation of the status by USCIS. However if I could form an LLC where someone else is a "manager", and I could be the member. That way it can be shown that I am only an investor in the company, and not working for it.

I wonder how others on H1b has gone around it? Also would love to know if someone ho is a citizen would like to partner along?

 You are not getting any bank to work with you unless you have a US bank acct. I have done about 500 deals there with dozens of overseas cash buyers, NON refi 

Good luck 

Well @Shuvrajit Mukherjee if you decide to switch things up and start investing here locally in Chicago I am more than happy to connect and be a resource.

I have some friends around Cleveland and Columbus which both seem to be solid midwest real estate markets.

Quote from @Shuvrajit Mukherjee:

Quote from @Erik Estrada:

Quote from @Shuvrajit Mukherjee:

Is there any lender who does not require an LLC at closing?
ARV should be around 110-120k, and looking for 70% LTV

You can close on a DSCR loan with your personal name, however the ARV in this scenario is low. The minimum loan amount for a DSCR loan is $75k, which can work in this scenario, but the rate and the cost will be high.

Can you qualify conventionally?

 I can, but I guess they will have longer seasoning period. I was hoping to refi in 3-6 months period 

 You can refinance with no seasoning period. There is a requirement of at least $10k in rehab completed to use the new appraised value. 

Otherwise you the minimum title seasoning is 90 days. 

I am currently out of 2870 with them they never funded the deal… please report them to the FBI Using this link

https://www.ic3.gov/Home/ComplaintChoice

Also could we all try to work together to get our money back… maybe we can all sign a letter or petition to our banks with all of our signatures… please let me know if youll want to try to work together.. we are stronger in numbers