All Forum Posts by: Waylon Themer

Great job @Eric Benzenhoefer !  We will get together soon!

@Eric Benzenhoefer  any updates on the project?  It was about this time last year I went and checked it out.  Wouldn't mind seeing it again and grabbing some tacos at that place down the road.  

Thanks @Bob Green  for the straightforward response.  Pulling 25% off the top and putting taxes and insurance in the denominator of dscr hurts things a bit, but allowing 1.2 on a 30 year definitely helps out.  

@Bob Green 

When calculating property cash flow how do you figure expenses?  Do you subtract vacancy, maintenance, management from noi? If so how do you determine the amount for these expenses?  Do you require escrows of taxes, insurance, and/or maintenance?  

I may be able to send some folks your way.  Yield maintenance is a tough pill to swallow but it's par for the course when utilizing non-bank long term financing.

Check out RICH and Lifestyles.  The basic membership  for each club is about the same cost at around $250 a year.  Lifestyles preaches buy and hold while Rich gives you a little dose of everything.

I have loaned on deals similar to that but not to anyone that lacked experience and liquid reserves ( and preferably secondary cash flow such as w-2 or business income). Or at least 2 of the 3.  You will find the smaller the deal the more it will depend on the individual; the bigger the deal the more it will depend on the deal.  This deal would only work for me with your uncle on the note if you don't have the reserves or experience.

Hard money or private lenders would do the deal but that typically isn't a long term solution.  If this is a long term hold you will need more attractive interest rates so you would have to be confident in your ability to refinance.  If you have that kind of cash sitting around and you are dying to get into multifamily, you may consider a passive investment like @Michael Ran  described so you don't have to qualify for financing.  

I don't own any commercial real estate but I make loans on commercial real estate with a local community bank here in Houston.  I currently only own houses but I'm interested on making the transition to commercial with the right partners.

The easiest way is to partner with someone who has prior apartment investing experience and decent financials.  You may have to give a little more equity than you would hope but partnering will allow you to go to the bank with confidence that you can get a loan.  A commercial loan from a bank shouldn't be too hard to get with 30% cash equity.

Great Video!  Thanks for sharing

Our max amortization is 20 years.  On lower end properties (under 75k in my market) we will put them at 15 years many times.