All Forum Posts by: Daniel Hanson

Thanks @William Newman and @Darren Budahn!  I appreciate the recommendations.

Hi all,

I'm close to an offer on a 6-unit property in Milwaukee.  Most of my previous property financing has been unconventional, and this is my first multi-family property that would have a commercial loan.  I have a short list of lenders I plan to approach, including Waukesha State Bank (prior relationship), Waterstone Bank, Wells Fargo, Northshore Bank, Landmark Credit Union (prior relationship), Bank of England in Brookfield. I'm also going to try Connected Investors Exchange and RealtyShares.

Does anybody have any other local recommendations to share, or experience/ tips to share regarding the lenders I listed?

@Alan Jones

Some quick math tells me you are looking at a loan value of about $70,000.  For the 10 year loan at that rate you'd pay a total of $12,573 in interest, for the 30 year loan you'd pay a total of $52,111 in interest, or about $40,000 more over the full life of the longer loan.  If you have cash reserves and can handle the occasional vacancy, and lower cashflow for 10 years, you will make more money by taking the shorter term loan.  if you need the monthly payment to be lower to meet your short term cashflow goals, go the route of the longer term loan.  This quick analysis ignores any tax effects due to having a tax deductible mortgage.

Welcome @Joe Arida! It's a great community for beginners and networking.

Assuming I'm reading the BP calculator output correctly ( I haven't used their spreadsheet), the cashflow and COCR look unattractively low, for taking the risk of investing from across the country.

I would also completely ignore the city assessed value.  I've seen them off by a factor of 100 to 200% vs. purchased prices.

Welcome @Adam Trantow!  Sounds like a good start and a good background to go even further.  Great market to be in as well.  I'm also planning to go to the Saturday meetup.

Welcome @Jason Roman! Glad to meet tonight at the MKE REIA. I'm also in Waukesha as it turns out, so if you want to meet for coffee sometime I'd totally be up for it- change of pace from the normal 68th and Wells...

@Ajay Keluskar - this may not apply since you're area's MLS is tapped out, but ask your agent to set you up with an MLS portal so you can see all MLS properties available. That way you preview everything out there, instead of just the few listings that the agent brings you.

@Andrew Marsh

ok- building in the cash cushion up front makes sense and then replenishing from rents.