All Forum Posts by: Bill Horton

@Account Closed see if that broker can get you a submarket report from CoStar, along with his/her opinion. It may give you a good insight on the time to lease it up. It sure seems like office space is sitting on the market much longer right now. That is our experience currently with our small portfolio in Oregon. 

@Alex Ng, typically it will be spelled out in the PSA who will order a preliminary title report and review of the preliminary title report is a common contingency. At least that is my experience here in Oregon. 

@Justin Wiezorek whoah! This is crazy to go back and look at a post from 9 years ago. I also missed a ton of the great replies on this one, so thanks for bringing this back up! I think a lot of the advice in there is still valid, but I can tell you one thing I sure with I would have done everything I could have to borrow as much money as I could and buy as many properties as I could have over the last 9 years. As long as it was covering debt service and operating expenses, I would be in a FAR superior place than I am now, especially with the price appreciation we've seen over the past few years. 

I think if you're looking for pure cash flow, mid-west markets are the way to go. But long term investment, if you have another business to operate here for income, buy properties that do as I mentioned above and you won't lose long term. Especially if they keep printing money. 

I'm a broker and have helped several clients purchase multi-family properties. One of them bought one, rehabbed all 3 units and lives in one while renting the other two. He also rents out a couple of bedrooms in his unit. He's a single guy on his own, but making cash flow and others are paying for his property. House hacking is a great way to do it around here if you're in the position to do that, in my opinion. 

Great deals on the MLS are VERY hard to come by, and once they hit the MLS, it's very competitive. As others stated on this, hustle to find off market opportunities. If you find the right deal, you can certainly achieve your goals here. I do also think we may see some opportunity in the commercial property market in the near future as well, as loans are maturing and the DSCR may cause issues with refinancing.

What are your thoughts? Where are you at with your investing journey? 

#1 for me. Straight to the point, no questions on what you’re getting.

@Julie Hill yes, there are definitely bridge loans for that type of project.

@Gordon Sheehan, it depends on the lender, so it may be worth shopping around. I did this and got a HELOC on our primary when we had a bunch of equity. Our lender would do a 90% cumulative loan to value. So the HELOC amount and our first could only be up to 90% of the appraised value.

@Michelle Costello, can you do either a line of credit, or just a cash out refinance with a 30yr fixed if they are houses? What is appealing to you about the ARM? With how low rates are these days, a fixed rate for long term seems like it would be a great option.

@Danielle Du Plooy we do a security deposit equal to one month of rent for the space. We also collect first and last month up front. Small Main St mom and pop type office/retails spaces.

@Jehon Bendokas a bridge loan is probably the way to go until you could get the property to qualify for permanent financing.

@Jehon Bendokas looks like you got a pretty great property! The lenders will definitely be more concerned about the DSCR than the cap rate.