All Forum Posts by: William Walker

I’m interested in understanding the typical steps. Is my first step to contact a commercial lender and see what I am approved for?   Or is it more along the lines of once you have the portfolio selected you see if the lender will approve based on the numbers?

I definitely do not want the last option of buying the LLC. I've read stories about people buying a portfolio but having each individual property appraised prior to purchase, and then either cash out refi or sell individual properties out of the portfolio for substantial gain. While nice, I'm more interested in buying the portfolio whole and making a profit from the rental aspect.

Do you typically need 25% down for a portfolio purchase? Im assuming a lender will look at the portfolio on how it performs vs your DTI ratio when applying for the loan.

I own a few SFH rental properties and have for years. Own my primary residence and have refinanced both so I'm familiar with the lending process/steps.
I’ve been looking at local multi family properties which has led me to portfolios.  I’ve read articles and watched a few videos but I’m still confused on the general process. 

I see a listing for 6 SHF together. There is a price and a pro forma. Say I like the numbers. I get a rough value for each individual property and decide I want to purchase. It’s listed on say realtor or loopnet. Do I treat this as a normal purchase and get funds, pre approval, contact agent?  Do I talk a bank and get a commercial loan?  What are my next steps to buy a portfolio as an individual W2 earner?  Thanks

I often see people post asking if they should pay down a mortgage or their student loans/car/credit card. And often times a reply says something to the tune of pay down the credit card because the interest is +10% and the mortgage interest rate is 3% or whatever. 

When I sign for a mortgage I get a % such as 3%, but I also get a % over the life of the loan, something like 40%. So if I pay the minimum payment every month for 30 years, the total % I will pay is 40%. I buy a house for 100k, I pay 140k. 

Explain to me in simple terms why I should look at a mortgage as 3% and not 40%. Much appreciated. 

I’ve been following Multi family properties in Wilmington pretty regularly. There were a good number of properties available until recently.  I looked today and there was nothing. You probably need to know someone selling or a realtor about to list if you want anything close to a deal at this point. 

Some really impressive bad advice in these replies. 

Cancel the pet fee. Let them know that if they want to get a pet again that you’ll reinstate the fee. 
you should inspect the property just as you normally do

Why does your tenant have the contact info to the owner?  I have a PM for a reason - the primary being that I don’t want to be bothered with this kind of stuff. 

Don’t sign the contract. You don’t have the funds. Stop placing offers on things you can’t pay for. 

You’re going to be making 500k a year and you’re going to pick up 8 tenants to make another 20k a year?  

Let’s guesstimate after taxes you’re bringing in 23k a month for MD job. Is the extra $1,700 a month worth it for the hours, liability, risk? and to irritate your wife?