All Forum Posts by: StacyA McBain

Yes, Ted, it has been a tricky market for buying in Boise. With prices up and inventory down, Sellers aren't forced into many/any price or other incentives. For leveraged deals, we're back to looking at factors such as principal paydown to boost that return above stock market expectations and discussing the value of RE as a "tangible" investment. I have a couple B-grade, multi-tenant commercial listings returning a cap rate in the high 7% range, which is a bit better than the multi-family or single-family rental returns of today's market. Good luck out there! 

Hi @William Westfall, 

As the others have mentioned, yes - you're in the right place. There's heaps of experience to be found here in BP, and simply among the respondents to your post. I'm also a buy and hold investor, focusing on large and small multifamily properties, with a strong focus on making sure the numbers make sense.

There are several resources for networking with other investors as @Jonna Weber mentioned (she's also a  seasoned buy and hold investor). Her @Lisa Kohl and I each have worked to create opportunities to make local connections and to further personalize the web discussions we start here online.

Don't hesitate to let me know if you'd like an invitation to AVID Investors - An Idaho Real Estate Investor's Club. We host informative and educational networking events once a month (on the third Wednesday of the month). We bring beverages, snacks and people together to tackle a compelling investment topic.

Happy investing!

Hi Blake, 

I'll message you with a good commercial contact we use for commercial loans. They will be able to provide answers straight from the lender. 

Stacy

A wealth of information on Funding Investment Properties was shared at the last meeting of AVID Investors - An Idaho Real Estate Investor's Club. It included a panel discussion with four experts, each of whom spoke about a different source of lending. It was informative beyond these bulleted takeaway notes that I'm sharing below, which summarize some highlights that may serve as a helpful frame of reference as you explore your options and run your numbers.

This Wednesday's meeting will cover 1031 Exchanges  - you may PM me with your email address if you'd like an invitation (It's held in the Boise area - Meridian to be exact). 

Residential Lending (1-4 units)

• 45 day closes more common right now due to new lending laws (TRID)
• Up to ten loans, more down payment required after four loans
• Add 1/8% to the rate for a cash out refinance
• 4.25% was the 10/21 rate for cash out refinance 

Commercial Lending ( >4 units)

• 25% down
• Loan based on property performance and the person (can loan to entity)
• 10-year term 25-30-year amortization
• Interest rate tends to increase or go variable after a certain number of years.
• One example of a ten-year term:
• 3.35% years 1-3, 4.25% years 4-6, variable years 7-10.

Private Lending  

• Loan to LLC or entity, backed by the property
• <3 year term
• 7-12%
• 70% loan to value for a new investor/client
• Fund in 2-4 days

Self Directed IRAs (Mountain West IRA)

• Works for any investment properties
• Works with partnerships (you can partner with your IRA)
• $200 -$1,850/year
• Easier when a loan is not involved
• Loans would need to be non-recourse (not secured by collateral/the property), which means a higher rates

* The scenarios above were specific to the individual presenters, each of whom serves as a local resource whom we deem competitive. Information like rates and programs change daily. 

Welcome @Brian Pete !

Don't hesitate to hit up any of the BP members, including myself, for connections, advice or leads. 

Stacy

Hi @Ben Kerfoot

I use an excel spreadsheet, that could be of assistance to you, simply because it is so much easier to customize than other templates. You could easily add a row for your second credit line, copying and pasting the formulas, and make adjustments to closing costs. 

DM me with your email address if you'd like me to send it your way. 

Warmly , 

StacyA

There's one more REI group to know about in the Boise area, and that's Avid Investors Club. You're welcome to message me for an invitation and information on this invite-only Idaho Real Estate Investors club.

Meetings are held on the third Wednesday of each month (Wednesday, November 18th is the next one). 

You can't go wrong attending any of the three, local clubs/groups/meet-ups in the Treasure Valley (all of which are listed in this thread). It will be worth your while in terms of education, networking and information. Hope to see you there and around the posts here on BP. 

Vacancy is low in the Boise and surrounding Ada County area (<4%). Typical SFRs 3/2/2/ 1,400 SF rent from  $900 - $1,200. Multi-family varies by neighborhood - 2 bedrooms with shared walls run from $600 - $800 ish. 

I have some multi-family sales data from our last Avid Investor's Club meeting that I can email you upon request. DM with me your personal email, if that follow up is desired. 

StacyA

Good idea @Tyler Herring

Name: StacyA McBain

Types of investments:  I hold multi-family properties in Ada/Canyon Counties.

In or out of state (or both): In-state, as close to home as possible. I have transitioned from buying, to helping others buy and sell investment properties. I do this as an agent specializing in investments and through Avid Investors, an Idaho Real Estate Investor's Club.

What are you looking for: Sellers of properties with strong potential returns, to share with my investor clients in Ada/Canyon County. "Coming soon" properties that aren't on the market yet (including before any market-readying work has started). 

Why should others contact you: To network; to boost up their power team with an agent specializing in investment real estate and my highly-specialized team members; to request anl invitation to Avid Investor's Club. 

There are a couple good, successful investment clubs in town, and that's likely because they serve as a great way to personalize conversation and opportunities, while staying in the real estate mindset and "in the know."

Steven, 

Bummer. Plumbers are expensive! If you already had him come out and the repair was incomplete, it would be reasonable to open up dialog and at least ask him to consider whether the follow up visit was actually completion of the initial work, as it seems to be, and to price accordingly. If not, he's not your man and all landlords need a plumbing resource on speed dial who can and will advise even when they're too busy to work, and who will not overcharge.

I don't know your situation with the tenants, but in an ideal scenario you are still in possession of security deposit (or they are still there to bill). If you get written documentation from the plumber, and have a good lease, the disposal of wet wipes down the drain could be tenant-caused enough that it constitutes a chargeable offense, especially if they agree to stop disposing of wet wipes down the drain and/or admit that they have done so. 

Good luck out there! I feel your plumbing pains - I'm replacing a water main line right now in one of my older rentals. Grateful to feel like I'm not getting raked over in that already expensive job.