All Forum Posts by: AL Brown

When dealing with 5plex and up the banks now look at the NOI and cap rates. My question is when applying for a loan for a multi-family over 5 units do the banks still take into account your personal debt to income and do they question any huge deposits (hard money/Private lender/friends&family) compared to conventional lending. I would like to use hard money for the down payment but however before I go that route want to know what if any impact would it have when doing commercial loans. Hopefully I'm making sense.

Wow very impressive! Not only is this inspirational but its motivation for anyone having doubts or think something they would hope and wish for is unattainable. 

I would like to personally thank @Josh Mitchell@Account Closedfor the much needed advice in order to make a sound decision. After careful consideration, I will be staying clear of Condos for now. Currently have a townhouse under contract with tenants in place. Carrying cost will be low, HOA is low and covers the important upkeep, one of which is the roof. Fingers cross this first deal is looking very good in terms of the bottom line. Thanks again all.

If i purchase a condo all cash and 6-12 months down the road i want to do a cash-out refinance to put as downpayment or other investment activities what are some of the issues if any i may come across being as though its a condo and certain banks do not like financing condos. Location Palm beach county Florida 

Thank you sir! Hoping to get the ball rolling with the next several weeks. 

@Patrick thanks for your advice and thanks @eugene for the link will be checking out the options 

Starting an LLC has different price ranges. I want to create one before purchasing my first Multifamily property. What specifically do i need. For example do i need a business license, Corporate Seal and compliance kit, permits, tax registrations and operation agreements. Plans start from $49 all the way up to $600.

Very good question. Im in the beginning stages as well because I'm looking to purchase my first multifamily property hopefully within the next month. In my scenario I would set up a business address through UPS then the LLC and establish a EIN number then a business bank account. Its costly however it's best. I do not want nothing linking my personal home address or social security number. Also for liability purposes and protecting my personal assets I would recommend setting up and purchasing and investing through the LLC. The last thing you want is to be sued (in my case scenario) because of negligence on the tenants part I.e. Party at there unit and someone slip on the steps or lean on the railing and fall over. So I would say analyze the risk of what you are going to be investing in and have a safety net just in case.

Thank you so much for welcoming me! Will be utilizing the site in any and every capacity to learn what i can, apply it, then share my results as needed. 

I've always had an interest in real estate but never took it too serious and i just felt with the economy slowly recovering it wouldn't be a good idea to even waste my time in that area to dabble with RE investments let alone use my dead money (stocks & funds not earning any money or interest) I had sitting around to pursue it. Little did I know RE has so many aspects as it relates to the 4 quadrants. I found myself eager, as everyone else, learning about wholesaling, rehabbing and flipping, to build up enough reserve to flip and hold for steady cashflow, depending on your vision. I'm hoping to network with seasoned individuals as well as mentors and other individuals with stories to teach myself and others of the pitfalls and red flags which although some is self explanatory and common sense, things can still be overlooked and your running like a dear in headlights.