All Forum Posts by: Angad G.

Hi Kenneth,

Very interesting concept! How were you able to get in touch with the bank's REO dept?

Hi BP,

I have a close friend that would like to loan me money to use as working capital for my RE investments (I use the BRRR method mostly). Because I purchase in cash and am always re-financing properties with term loans once they are rented (usually 3 months post-closing) it does not make much sense to borrow money at the property level. If lending on individual properties, we would have to likely record 3/4 mortgages every year as properties are bought and refi'd.

One idea we had was to record a UCC-1 at the entity level for one of my LLCs. The entity owns 10 single family rentals which have a blanket loan  on them so the entity level lien would in essence encumber some of the equity in the properties. Has anyone ever used this structure? Thanks in advance! 

Hi BP,

For my single family rentals (owned in an LLC) I have traditionally been using insurance brokers that have been recommended by my PM. I had about 80K of coverage on each house (Actual Value) and a $1MM liability policy. I was paying a premium of about $900 a year for each house. Properties are located in a noncoastal, low-income area in NJ.

I just got a quote from a Statefarm agent for about $350 per house for the same coverage. Am I missing something or was I getting ripped off before by the insurance brokers? 

Thanks all for your feedback!

@Curtis Bidwell I went the LLC route on the insistence of my CPA because of liability reasons. The game plan we made was to buy about 5 properties in an LLC and then create a new entity for each group of 5 houses so I never have more than $500K at risk.

@Alan G. Hi Alan! I approached about 20 banks and got very close to getting financing from a few local banks. On 1 of them, the loan officer took my app in and then just went MIA, not responding to my calls or emails. The other rejected my application as the LLC had been in operation for less than a year and I am first time landlord. The 3rd bank is backed up so they wont even look at my app until mid next month.

@Aaron Gaffney  Thanks ill give them a call!

Hi BP,

I have been working for the past 2 months now to find a commercial lender to refinance rental properties that I own outright in an LLC and have been unsuccessful. I recently put an application in with a mortgage broker and they said they are confident they can arrange finaincing but are going to charge 4 points worth of fees, which I find to be extremely high. All of the local community banks in the area are no longer lending on single family rental properties owned by LLC's as they are overexposed to them. Are there any national lenders or mortgage brokers you would recommend?

Some specifics about my situation:

-Properties appraise between 55K and 90K each for a total portfolio value around 300K

-They are all rented for around $800 a month each

-There is a good deal of forced equity in each property as I rehabbed all of them

-LLC has been in operation for a year and is wholly owned by me

-I have good credit and income

Thank in advance!!

Rough estimate would be: 

Income - 8K per month

Rough NOI Calc (Multiply by 60%) = 4.8K a month = 57.6K

57.6K/875K = 6.5% Cap.

Not terrible, but would want it to be more around 8%. So offer 720K

  Hi @Darren Sager When is the next meet up?

This reminds me of the watch wholesale business. Happens all the time! One wholesale dealer will send a pic of a watch he just got in to some dealers he works with who many times just send the same pic to other dealers with $500 or so added to the base price. 

Thank you so much for all the help guys! @Matt Payne @Darren Sager @Laura Williams 

As I am currently a student at NYU I will be pretty much focusing on finding rentals for other NYU students that want move of campus. Finding clients will not be a problem, but I am worried about finding listings for apartments, especially being that most land lords dont like to rent to college age kids. If I sign up with an established brokerage, should there be enough open listings that I will be able to find places?

Hi guys! So I recently obtained my NY Sales Person License and am in the process of looking for a broker to sponsor my license. I know that it is customary for a new sales person to start their career of with rentals. I am also aware that the buying party usually pays for the commission on a NYC lease transaction. So my question is as an agent focusing on rentals what will I be doing? Do you get an exclusive right to list units in a building? Are the different agents for the lessor and lessie? For example if I have a client that has asked me to find them an apartment, where will I look for the apartment? Is there a REBNY mls service for rentals?