All Forum Posts by: Amad Osman

Interesting article on non-agency mortgage delinquencies from the 08 crash.

Why bubble-era home mortgages are a disaster waiting to happen -
https://on.mktw.net/2SpkCRx

@Chase McArthur, thank you for the info.

I also agree with what you said. The ideal situation is owning a successful business and using those pre-tax profits to acquire cash flowing assets like real estate.

@Erik K. I think you’re wise to start looking for other opportunities in this market. Although I agree that multi-family is a much safer bet and that’s reflected in the potential returns.  Two completely different animals though... I say if it intrigues or excites you, go for it! Just make sure you and your investors understand the risk.

@Chase McArthur I’ve always wanted to look into mezzanine debt investing. Do you have any good book recommendations or other resources you can point to?

@Jacob George Lada yes, commercial loan. Amortized over 20 years with a 5 year ballon. 75% LTV, 0.5 point, fixed rate at 4.49%

I used Orrstown bank a small regional bank in PA. 

Hey Ryland,

My first property was a 6-unit and my loan was approved in 48 hours. I used a small local bank and it was way easier than a personal mortgage. I am guessing if the numbers work and you have good credit as the guarantor it should be fine.

Good luck!

PB Services is a property management company in Chambersburg. They have an experienced lawyer in their office that may be able to help.

Thanks guys, appreciate you all taking the time to respond. 

 If only it was that simple. There are 10 additional events of default beside failure to pay. I also felt blindsided by this, but that’s my fault. Lastly, I just don’t trust banks I guess. I’m going to consult an attorney and make sure I understand all possible outcomes.

Thx @Andrew Beauchemin

75% LTV and there is a 1% early payoff penalty, but I'm willing to eat it.

So if I offered to put down another 10-15% I could have avoided it?

Hey Guys,

I was closing on my first multi-family in PA the other day and the lender had me sign a confession of judgement tied to the loan. It was the first I ever heard of it and after closing I researched it. After researching it, I am a bit concerned and wish I knew about this requirement before choosing a lender.

My questions: 

Are these required on every commercial loan product in PA?  

Do you guys also sign as Guarantors on your commercial loans with this clause?

Seriously considering early loan payoff. I'm not a fan of debt, but I figured leveraging for multis was a responsible use of debt.  That being said, signing as guarantor and the confession of judgement thing has me reevaluating my approach.

Thanks in Advance for any feedback!