All Forum Posts by: Aaron Smith

@Farakh Zaman

I've been looking for almost a year now. We JUST got our first property under contract TODAY! We live in UT and the property is in Michigan. 

Florida has GREAT options. As does Michigan, and Arizona. The Utah market is RIDICULOUSLY expensive right now so that's why we've looked out of state. 

Keep at it, and something WILL come along! 

@Stephanie P.,

None at this time that I'm aware of. I'll know more for sure once the inspection is completed. 

@Daniel Roca thank you for the amazing input. It's amazing what you forget when you don't use your accounting degree :/ didn't think to use PV. 

@Douglas Larson

LOVE that bathroom! Job well done sir! I'd like to get a break from the rain we've been getting in SLC. Hopefully you're missing out on it up there in PC! 

Aaron

Hey everyone! Just had an offer accepted on a 6 unit in Detroit!!!! Now I need some help with reviewing/choosing the right loan. I've received three funding offers. The interest only one will be 8.5% (he forgot to attach it to the email). Can you smartly people help me weigh the pro's and con's? 
- Lender A:

• Fixed Rate (3 year or 8 year) with 30 Year Amortization
• Max. 75% LTV
• 3 yr Fixed Rate = 7.99% / 8 yr Fixed Rate = 8.74%
• Pre-Payment Penalty 3yr Fixed = 3%, 3%, 3% / 8 yr Fixed = 5%, 5%, 5%, 5%, 5%
• Lender's Origination Fee = 3% (Fee Buy Down add . 50% to rate per 1% in Fee Discount)

• 18 Month, Interest Only Payments with a 6 Month Extension Option
• Max. 70% LTV
• No Pre-Payment Penalty
• Extension Fee is 2% for 6 Months

• 12 Month, Interest Only Payments
• Max. 85% LTV
• Interest Rates 8 - 12%
• May Finance Closing Costs
• "BORROWER WILL NEED TO DOCUMENT 2 SUCCESSFUL FIX & FLIPS OVER THE LAST 2 YEARS".

As I'm not flipping this, I'm not sure why C has that there but, it may be I may have to choose between A/B. 

Thank you everyone for your help! 

Aaron

@jj 

@JJ Chojnowski someone may have covered this, but if you're going to purchase a MF, then MOST banks require it to go into an LLC, and usually don't have a "due on sale" clause. That's usually for SFR when you're trying to transfer it to an LLC (USUALLY not allowed for SFR).

All the best to you! 

Thank you everyone for the replies. They wanted it all their way. And so when I told him to draw up the contract with my offer I never heard back. So... Adios.

@Jim Bowser is this still available?

@Jim Bowser is this still available?

@Federico Gutierrez is this still available? If so, could I obtain the rent rolls/expenses so I can run the numbers? I'm in Utah so this makes it easy to determine if things will work out for everyone : D

I hope this finds you having a great 2017! 

Sincerely, 

Aaron