All Forum Posts by: Sanjoy V.

Hello everyone, If I plan to buy a property and potentially exit in three hours or less but still I want to have the safety net for 10 years if the market changes what do you suggest. I am concerned about the balloon payments if I took it for 10 years and had to pay back early. What are the typical early payment penalties, let’s say for a 4 million loan. Is interest only better?what are the advantages disadvantages for somebody trying to exit early with having conventional loan versus having interest only for the first three years. Thanks in advance!

Hi everyone, I am so close to making an offer on a apartment deal that I like. It’s in Dallas Fort Worth area with around 6% cap. Some value add opportunity to raise the rent and potentially exit in 2 to 3 years. Current calculations project and IRR anywhere between 15 to 25%. Should I purchased now or wait until later next year, can expect potentially recession hitting or market correction; where I anticipate having a better deal to buy. In any case a better deal I’m not sure it will mean That Dallas will see any rates in the 7 to 8 range in the next 2 to 3 years. I can still potentially hold the property for 7 to 8 years, I have planned multiple exit strategies. Therefore, is it better to wait for that better deal next year or later where you could potentially buy it at a 7+ cap versus buying what I have now. I am trying to understand the opportunity cost and loss in that here. Is this the time most seasoned investors hold their money and wait for the right opportunity in the next 1 to 2 years? Hoping someone can explain or walk me through the logic and pros and cons of waiting for 1 to 2 years vs buying something now and potentially trying to exit in three years versus holding it a little longer to tide a bad phase if it does occur.

Hi Everyone, I am considering this property which is valued at 3.8 million by the local county in Dallas Tarrant county area. Current taxation for that is close to hundred thousand and the seller at this point is trying to protest the property tax. Last year I think they paid close to 75,000 property tax. This property may sell close to 5.3 million or so and I’m trying to get an estimate on what the new taxation might be if it’s close to 120 thousand at the full price then it just becomes too much increase in the price point. Before committing to this property how do I make sure the actual tax maybe. How local counties find out the sale price of the property for a new taxation. Do they go by 80% of the value or the full value? Are there any other strategies to lower your tax? Might need to utilize attorney for that, any suggestions and thoughts on the success of this. Any recommendations for attorneys who are good at this will be appreciated. Thanks in advance!

Thanks so much for your reply, it helps me make my decision.

If its going to take me that long to be out, I don't see a great benefit pursuing it, with issues related to getting the tenants out etc.

Is it wise to invest in a LURA restricted Multifamily? It has 3 years left on LURA. On a busy street, but the rents still seem on the low side and not even up to what the Lura restricted rents are. Currently operates at around 6% cap, some degree of remodelling has already been done so not sure if there is any immediate upside value add deal in this. Think need to verify why the rents are still this low, and only play in this is to resell it when close to Lura expiring and the fact that rents can be raised to market? It may take a while to slowly have previous tenants leave after lura expires and then fill with new tenants; but with Lura tentnats in there, will there be difficulty attracting new tenants?

Looking for some advice on loan payments. I had questions about balloon payments for the mortgage. Let’s say I bought a property and hold it for five years, has a mortgage for 30 years but I decide to sell the property; are we taking into account the the fine for making the payment early in our underwriting? If the loan maturity is for 10 years but if I paid back after two to five years, usually what is the fine for being at anywhere from 2 to 5 years early when the actual loan is for 10 years and amortized over 30 year

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Thanks Rush. How about Decatur, I am looking at property there as well...

Is Hapeville a decent area in Atlanta to invest? What are the areas to invest in multifamily around Atlanta and areas to stay away, can anyone please shed light; I want to give property to management and will be a out of state investor, looking for a balance between appreciation and cash flow, class B- or c+; 5-7 year hold may be, at least 20 plus unit and less than 100.

Hi there, I am looking for recommendations for a good realtor / broker who can help me find deals in the Dallas Fort Worth area. Apartments/multifamily in the 2-5 million range, with value add opportunity. Thanks in advance! Jay Vin