All Forum Posts by: Vinay Nair

I have been offered a rental portfolio loan with following and not sure it is a good deal. Can someone guide me?

20 single family rentals valued at 1.6m

60% ltv

20k expense related to appraisal and title and due diligence

1% origination fee

Rate : 3.9 + 5 year swap rate (1.9)

Loan term 5 year with 30 year amortization 

Recourse loan

We have not really seen the impact at all of government doing bulk rental deals.
Anyone see it otherwise?

Recently there has been lot of press coverage on big investors buying rented single family homes in bulk.
100 to 1000. There goals are to diversify. There has been talk of Moody's rating bonds related to rental portfolio. Few questions
Any one in the forum has been part of such deal?
How to contact such investors?
Is it worth cashing in now versus holding a rental for long term?

We have huge tax foreclosure coming up next week in Michigan. A typical sale is $15k. The bank owned or short sale in same neighbour hood is going for $25k. Rents are $750 to $900.

Will this be a good bulk buy ? What are the challanges of buying tax foreclosed properties ? Experts please guide.

I have 5 years of experience with REO investment and have done well. Most of my cash is exhausted and I have just some left. Recently I was approached by two investors who were following my success for last few years and asked me to invest for them. The proposal is to invest $250k each between 3 of us including me with my $250k. Total $750k. I will be the decision maker on buy and sale and will be spedning time to locate investment. These are single family homes being bought, rehabed and to be landcontracted to buyers. So lot of work involved.

Can anyone suggest innovative way to structure the deal so that I get compensated for my expertise and time since all 3 of us investing the same amount and is also fair to additional investors ?

How to foreclose on Landcontract ? What is the normal timeline? Does it take as long as the Banks are having to do ?
Please advise.

yes, I know the area.
Exit strategy is to wait for Market to come back in 10years and sale. Each one was worth120k in regular market. Will that increase ROI

I would request experts on this forum to advise if it make sense to invest and have a good ROI. This is real opportunity.
Metro Detroit
10 single family homes built in 1950s - brick
each : 3 bedroom, basement etc - 900+ sqft
All are rented
Avevrage Rent : $850
Average Tax : $2400
Average Insurance : $800

Asking price $350000

What is ROI in this after real expenses ?
What could be the exit strategy ?

Really appreciate some good feedback.

Thanks