All Forum Posts by: Arnie Guida

hmph, I figured Dawn's expertise was worth the extra $5!

@James Wise

I didn't know if it was appropriate to post the name of the lender publicly, so I'm sending it via private message.

Arnie

Edit: Now I see no messages unless your a colleague... Oh well...

@Patrick L.

Thank you.

@James Wise

It's a local bank, one of the bigger ones.

I inquired on financing for a 12plex and the lender, a local bank, offered several options, one of which was pledging one of my free and clear 4plexes as collateral for most of the down payment, and then about 5% cash from me to have some "skin in the game" (his term).

I was unaware of this option, and thought that was pretty aggressive. I'm meeting with him today for further discussion, and was hoping for some advice on what to ask. Do they just put their name on my 4plex title? How do they specify the dollar amount, or percentage of ownership of my 4plex? What do they get in return, just partial ownership? That's it? Don't they want some cash during their ownership?

As for terms, he said it was 3 years, and a ball park interest rate of high 5's to low 6's. Does that sound competitive?

Any other advice you can offer as far as questions for me to ask would be appreciated.

Thank you,

Arnie

Ding ding ding, we have a winner!

Your level of leverage is directly related to your level of stress.

...one thought about never, or infrequently driving past your properties, if you don't tend your garden, you'll get weeds, and weeds left unchecked, will overgrow your flowers...

I didn't drive by two of my properties today, and may not tomorrow... ;-)

...and the one I did drive by, it was collect the balance of the rent...and late fee, of course!

I guess I was overdoing it, but the excitement of this last property, and being retired, well, it was something to do to fill the day...maybe once or twice a week from now on. It's just that they're so close  and on the way of so many errands.

I'll tone it down...

For the record, I don't stop and stare, I move with traffic and glance at it. I seriously doubt the tenants know. I'm sure they don't sit at their windows for hours waiting for me. It's not my intent to snoop, I've got a lot of money sitting there, I'd be derelect to not keep an eye on it.

I do.

I can't help it. It's part keeping an eye on things, but it's also part pride. I feel so fortunate to  be able to say, "I own that."

I realize many here don't live as close to your buildings as I do, mine are all within 5 miles, but for those of you who don't live far from your properties, how often do you drive by?

Arnie