All Forum Posts by: Anna Catron

Quote from @Raymond J. Rodrigues:

@Anna Catron conventional financing has a 12 month seasoning waiting period to do a cash out refinance based on after construction value. Anything prior to that will be based on total acquisition cost which is land value plus construction cost. You need a portfolio loan to do a cash out based on construction value. Happy to share some contacts with you if you need them. Feel free to reach out. 

Fascinating!  Those are the details for which we were looking!  And is the land value what we paid for it or what it's worth currently??  We bought a duplex and they owned the lot next door, literally threw it in for $500. It was worth 20k at the time, now we have an offer for 81k...
Thank you, sir for the information!  It'll help!

Quote from @Ray Hage:

Congrats on the newly built duplex. @Ash Hegde might be able to help out with this one. I don't think it should be too difficult to get a 15 year mortgage on it.  Why not 30 though?

Thanks! We're excited to be building! We got the land for a song, so the ROI will be great!

Well, we're old!!  Thatch Nguyen has convinced us that we can retire w 5 paid off duplexes, and my husband is kinda set on that. Thanks for the contact!  I'll reach out! 

Quote from @Nicholas L.:

@Anna Catron

you could try a DSCR loan broker. I've worked with The One Brokerage, David Greene's company, successfully in the past. not affiliated in any way.

Thanks, sir! I think we're going to await the DSCR for when we have >10 mortgages, but we're getting there!!

Quote from @Earl Cohen:

Have you seen the Property Llama tool by Bigger pockets member Chris Lopez? 

https://propertyllama.com/

 Dude! Why didn't I see this!?  This looks crazy amazing!  Thank you!!

Only thing that scares me is the video as soon as you open the website "Why I'm liquidating 50% of my properties"? Yikes! We're not even warmed up yet! 

dude, we're building our first duplex and are saving $7000 by NOT using HVAC. We're using minisplits. They're cheaper, you can do your own maintenance and if they break, you buy a new one! My husband doesn't sway easily, but when he did the research and the math, it was a no brainer. 

PS We own 4units, so we've worked with our share of HVAC

Quote from @Ian Stuart:

In my opinion, multifamily NOI growth will slow over time as inflation pressures in the U.S. continue to weigh on tenants' disposable incomes (which detracts from their ability to pay higher rents). The U.S. government is in a situation with an unsustainable debt load, and the only way for them to get out is to debase the dollar, which will cause further inflation.

I also think that demand for U.S. treasury bonds (which underpin most fixed rate permanent debt products) will dramatically decline over the next 20 years, which will cause interest rates writ large to substantially increase across the board. Reason being? Fixed income U.S. treasury bonds are not  attractive at all if you're being paid back with dramatically debased dollars with lower purchasing power. 

IMO, this combination of lower NOI growth and increasing interest rates will not only cause cap rates to expand / values to decline... it will also make it more difficult for owners to refinance, even out of "safe" long term fixed rate permanent debt.

Personally I would not want to own leveraged multifamily assets now for this reason. 

 Ian, I would agree if I though the US economy followed a logical progression. I no longer believe that the US economy works like it should. Yes, I agree the dollar is losing value, but we've used so many crutches, so many times, I can't imagine we won't in the future. I still have faith that using leverage in the multifamily space is a safe bet. The disappearance of the middle class is forcing many to have to rent.  

We built a duplex with cash. We spent 150k and expect appraisal to be 280-300k.  This will be our 4th investment loan. 

First, any idea how they will value the property? BofA is saying land purchase price plus cost to build. Others are saying BOP and appraisal. 

Second, we're having difficulty finding a fixed 15yr mortgage. It's too early in the game to put my contact info online and receive 800 scam calls. The difficulty is not on our end, we have great credit and DTI and cash reserves.

You guys are amazing! Thanks in advance. 

Hola!  We're in FW, TX, and building duplexes to hold and rent. Is there a calculator for that?  We'll build (150k) with cash and then finance (100k) out into a 15yr note. Our numbers are pretty solid as we already own a prototype in the same area. Running the numbers on BPs "RENTAL PROPERTY" calculator somehow feels incomplete. Any ideas? 

Thanks!

Quote from @Jeff Nash:

@Kyle Crouch I’d be happy to discuss with you as there are a number of different funds and they are of different types and geographically dispersed.

 Good afternoon!  Were you able to help @Kyle Crouch? I'd love help as well!

Well, that stinks.  We wanted to do the same in Texas. I understand you can't exchange with yourself, but if the spirit of the law is to get us to build, why couldn't you put the profit into the actual construction even if you already own the land?  

Would it be worth contacting a real estate tax attorney??