All Forum Posts by: Tim W.

Hi All,

Was hoping to tap the groups expertise on explaining/guiding me on financing options. I'm looking to by a 4-plex property outside Pittsburgh for about $220K, and am confused about lending options.

I'm 41 and have a successful career thus far in the Investment Banking space. So i have pretty sizable personal assets, along with a relative high income. Due to my personal assets, i really need to have the Loan under a newly created LLC for liability protection. I also am fine closing my purchase in cash, and refinancing shortly thereafter (or even down the road in 6-12 months).

So for my questions:

1) I've spoken with some mortgage brokers- they all seem to charge a lot of upfronts and are telling me I need to do a DSCR loan. Is that really the only option available via a mortgage broker? Are there other options i should be asking for?

2) I haven't yet reached out local banks, but seeing the quotes from brokers makes me wondering if Banks may be better? I'm fine if things get drawn out weeks/months, and would not mind building personal relationships with Banks. But I'm wondering if the LLC loan is a no-go for banks.

3) Last question- i'm seeing rates on DSCR loans in the 7.2% to 7.5% range, in addition to 1 to 2 points and they likely track 10 yr treasuries (4.26% as of today). Is a roughly 3% premium to Treasury's typical for a commercial/DSCR loan?

Many thanks for any insights & guidance.

Tim

Great share Gabriel & congrats. I'm newer to multi-family and doing something similar in Pitt. Will share a similar update on mine when under contract. 

Hi- I'm new to BP, so apologies if i'm not going about this in the right way. 

Could anyone provide some recommendations for property managers in the greater Pittsburgh area?  Looking to buy a quad plex and have it professionally managed. 

Thanks!

Tim