All Forum Posts by: Steve Morris

"At what point do I need to use a 503b when building capital for a Multifamily property."

Call an EXPERIENCED RE attorney and set up a TIC. You're over-complicating this. The structure works well as long as you're staying in the deal (I assume for ongoing asset mgmt fees).

Ummm, kinda new to the RE business?  How about just looking at the listing service or for a sign to find the broker if it is listed?

In a conventional listing, the seller picks a broker and agrees to give him a fixed commission (I do a co-op / no co-op fee, so am different).

Usually, whether the seller co-ops or not, he pays the same commission, so why would he drop his price for that reason alone?

Do you actually want to make money selling stuff for others to others?  Am unclear.  If that's the case, about any brokerage will take you on for the desk fee.

However, I'd recommend if you're new, find a place with a senior guy willing to learn you.  Training helps also and tools like access to listing services and creating marketing stuff helps also.

Now, if you're just parking a license to buy for yourself only, tougher sell to a brokerage.  May as well get with one of those 1% places.

Son, am a commercial broker.  

Can assure you if we have an off-market (i.e. no listing agreement), why would we tell other brokers who will go after the listing against us?

Just make you case with the other rentals at lower prices / better amenities.  When things were bad in 2008, I had a couple of tenants I did give-backs with, but they brought me competing units so I could see.

Well, usually they're about $5/unit/month to generate a letter which isn't that hard to do.  Make sure they do colllections also however.

Of course, I'd talk to your prop mgr.

Go to a commerical broker.  Makes no sense that if you're renting it our that you can't count that as income.  The 3% may be a deal on investment property, however, since that leaves the bank with ZERO equity to go after.

Broker apartments in Portland.  Right now, I've told people I wouldn't buy in Bend since pricing is up with Portland, but Bend still doesn't have any real well-paying jobs.

Think you'd have a lot more price appreciation in Boise if you can find something.

Well, yes, rent = income which goes toward your DCR (debt cover ratio). What's your mortgage amount and rate?

1) the interest rate is higher than what I'd expect. The lender said there is something to do with the current environment. I was wondering what rate is normal nowadays. 

That does seem high.  For a straight-up re-fi with NO cash-out, I'm seeing 3.5%-4.0% depending on the property and borrower.  Cash-out is a little higher rate, since once you get cash the bank's recourse is limited.  I'd call a mortgage broker that has history with rental housing.  Right now though, most banks are not really eager to take on new debt, especially cash-out re-fis.  It'll prob be better later in the year.

2) the closing cost for a $90k property seems high. Is this what it is or I could call around for lower closing cost?

Well, if by closing costs you mean title, those rates are usually set by the state insurance commissoner.  The other costs are usually from the lender and your broker owes you a GFE itemization.  Sometimes (like if you're good customer of the lender otherwise) you can those reduced.  Alternatively, you can wrap them in the loan is the lender agrees and you have some acceptable charges.