A commercial mortgage bites the dust!

[Steve Vaughan]

I never do this! A little nervous with the Just Stop thread going on - but had to share.

Freedom is more important to me than anything. It's why I do REI. My 3-word goal for 2017 (if you remember that thread) was 'satisfy commercial mortgages' and I aim to do it!

In case you don't know, commercial loans usually have 5 year calls.  Some will call automatically and make you get a whole new loan, and some will just make you submit docs to re-qualify.  

I would like to share a letter (a little embellished, but I'm proving a point) I just sent to one of my local commercial lenders today, a community bank.  Hasta la vista, baby! 

Dear Claudia,

Thank you for your recent letter, providing me the opportunity to re-qualify for our little loan of $114,000 that is secured by $700,000 of income-producing assets, the entire LLC, my wife and I's personal name and my management co that has rights to collect all rents in my portfolio.

I do hope you will find my past 3-years tax returns, personal financial statement and the entire completed 1003 mortgage application sufficient to extend my loan for 5 more years at whatever interest rate you choose. Will this require another $3500 appraisal as well? Oh please, please - bless me with your mercy and grace.  

Just kidding!  Please accept this letter as a formal request for the pay-off amount and full reconveyance of the deed of trust as of May 1, 2017.   Is 2pm in your office a good time? Would you prefer cash or fed funds wire?    Kind Regards,  Steve

ONE DOWN - 2 TO GO!

A private lender I have known and done business with since 2005 is giving us a 10-yr fixed rate mortgage at 5.5% (the current bank rate) to pay this off.  No appraisal, no points and none of the usual underwriting docs.  

Thank you for sharing an important milestone with me!  

[David Faulkner]

Sounds like a great strategy ... what zip codes are you investing in again? :)

Actually, I wouldn't be so worried about the Just Stop thread nearly as much as the barrage you are about to get on debt good, equity bad ... you won't get that from me, though. Congrats!

Your hunting gun is now racked, stacked, and fully loaded ... ready for the next recession, coming soon to a market near you ... or if you decide your hunting days are over and you'd rather just sit on the front porch drinking a beer, polishing your hunting rifle, telling tall tales of hunting seasons past, and laughing at the newbies gearing up ... hey, you probably now have that option or will real soon. It feels good to have lots of options, doesn't it?