All Forum Posts by: Stephen Stokes

Reason to do a single note is just to cut down on closing costs, each note is another fee to the lawyers. Plus wanted to target staying at 75% LTV across the board to lower the risk profile as well.

10-12% rate is just not feasible for rental properties nor would it be commensurate of the risk (well managed and seasoned). Rentals in Austin stay full and my capital reserves for rainy day are excellent. The risk here is actually lower than buying a 10 year treasury!

For the borrower (me), this is just a way to avoid doing a cash out refinance as the 1st mortgage rates are super low (sub 4%). Texas does not allow financial institutions to do 2nds on rentals so it has to be done through private lending. 

I just closed on a private secured note with a friend who I helped move money to a self directed IRA but we both know the rate is relatively low (5%) and they will probably want me to prepay it before the 12 month term expires once another investment opportunity comes about. This is a 2nd position secured note backed by deed of trust on few of my rental properties which are in Austin, TX. The rental properties are now at 75% LTV with this new note included. All very well maintained and consistently updated properties in nice areas close to downtown. My question is, what would someone think is reasonable to get something like this done for a longer term note that makes sense for both parties. I would not be willing to pay 10% for example but would be interested in rolling this into a longer term note with another interested party in the near future. Also the payments are interest only to keep the cash flow relatively flat on the rentals.

@Joe Scaparra look back at some of my previous posts and see you and I mostly agreed what was coming and we agree now that it is here. What is somewhat perplexing is there are still those in complete denial despite the facts and data right in front of their faces. Happy new year sir.

@Tim Duggan just remember you’re essentially going to be suing yourself. It is always better to just get on the bird if you can and work change from the inside.

 Lee G. Vickers, Attorney at Law

Martinec, Winn & Vickers, P.C.

611 S. Congress Avenue, Suite 450

Austin, TX 78704

20% is in line with the market from what I have heard

Is that in total or for one side? If fully rented on both sides that is in line with the market. 

@Jordan Moorhead so how much in rent is that?

@Jordan Moorhead I have one just across the street fully remodeled and up to date. What were you assuming you would be able to get for rents?

@Jake Bryant if you have a deal you won’t have trouble finding a partner. List your deal here once you have it under contract and plenty of investors will be willing to partner/fund.

@Tye Ripma can you post some figures so we can see?