All Forum Posts by: Chris Simmons

Rates are expected to rise but when the Fed raises rates, it will effectively impact the prime rate.  If you have any loans with floating rates based on prime + something....then you will feel it, albeit rather slowly.  This will not have any direct impact on the fixed, long term mortgage rates as they are controlled by the bond market.

 That said, for anything you plan to hold onto long term, if you can get a 30 year fixed rate on it, do it.  That is what I have done with most of my properties and will continue to do.  I have 5 now financed that way and hope to get 3 more done before I leave my w2 or otherwise can't qualify for that financing type.  Then I will be left with the typical commercial note that is not near as friendly to investors.  Of course, I can still get up to 10 properties financed under my wifes name per fannie/freddie guidelines, but my focus right now is to leverage myself fully before turningt to her.

I am highly interested in this as I am actively looking to do something similar in Tulsa.  I will keep buying and rehabbing older properties, but would consider projects like this to be my ultimate long term hold/retirement account.   Need to learn all the ins and outs of building from scratch, selecting floor plans, etc.

Please keep us posted and perhaps blog about this weekly.

when did this tulsa bp meetup start?  First I've heard of it.  If you've been trying to keep me away then sorry, but your secret is out.  

welcome to Bp.  I am in tulsa and always have questions for a cpa.  Maybe we can trade some knowledge. 

calculate it like you were receiving a realistic rent for the bottom unit.  If you are happy with the numbers, then go with it.  The fact that you will choose to forgo the market rent and live in the bottom portion is your choice.   Don't expect to hit a home run your first time.  More important to avoid striking out.

I have not realized the profit yet as I am buy and hold, but I have over $70,000 in paper equity plus monthly cashflow due to deals that would not have happened without BP.

Mine are basically BRRR with an extra R. I buy for cash, sometimes my own, sometimes provate money. I rehab them and rent them and after they have seasoned, I refinance them to get the capital back and that is what allows me to Repeat the process.

Ok BP'ers.....the year is almost over.  What have you all accomplished?  This was a busy year for me.  I more than doubled my rental portfolio.  This included 3 deals I bought from a wholesaler I met on BP.  I have learned a ton using BP and look forward to further growth.  

How about everyone else?  Share your success stories and how you benefited from BP in 2015.

Based on what you are describing and my knowledge of the area, I am concerned on several fronts.  Fortunately, you are going through a good commercial bank that should vet your numbers but don't trust them totally.  Banks will still give you enough rope to hang yourself.  

This is a big deal with low quality tenants for your first deal.  Be ready for higher than average issues with vacancy and such.  

While I like the area, (I just bought a duplex at 25th and sheridan) the price you are paying concerns me.  I'm trying to picture where you would get units like that at that price and I'm not liking where I think it's located.  Hopefully I'm wrong and you really landed a good deal. 

The seller fixing lots of stuff is expected, especially at this price point.  Hopefully he does it right, but again, at this price point and considering he's selling, what's his motivation?  

Fortunately, this is still considered single family under landlord tenant act and financing guidelines, so you could conceivably get a 30 year fixed rate mortgage for both sides, (2 mortgages total).  The landlord tenant act is important in determining what you have to do as landlord....more strict and higher levels of service required for true commercial vs quadplex or less.  

Are utilities metered seperately?  What do you have to pay?  What are your numbers regarding trash collection, outside lighting etc....assuming you will provide either for these properties.  

How confident are you with exit strategy?  As rates rise, cap rates and property values will tend to fall but of course there are lots of other factors that can impact and override those.   Unlike a boring single family home, you will pretty much be stuck selling to another landlord so you need to be cautiously optimistic about future values etc. 

Proceed with caution. I will be happy to help and meet you sometime if interested.  

Good luck. 

That depends on many things, primarily your lender requirements.  Some lenders won't let you get cash back, some will require the title company put it in escrow.  

Talk to your lender and your title co and they will tell you what they will permit.

If you are dealing with a commercial lender, they may not care.  I recently bought a duplex where HVAC was stolen while we waited for title to clear.  Rather than install new and risk another theft, they just handed me a chashiers check at closing and we left all the other numbers the same.  Closing company looked at me a little wierd but said that was between me and them.  My lender was there and did not care.