All Forum Posts by: Branton B.

@Larisa Jimenez. I have used several; Bp’s, Michael Blank’s, etc. However, the best and easiest I have come across so far is : www.TheMultifamilyAnalyzer.com.

It is what we use and have a ton of success with it.

@Jeff B. I have used several; Bp’s, Michael Blank’s, etc. however, the best and easiest I have come across so far is : www.TheMultifamilyAnalyzer.com.

It is what we use and have a ton of success with it.

@Jal Singh. I have used several; Bp’s, Michael Blank’s, etc. however, the best and easiest I have come across so far is : www.TheMultifamilyAnalyzer.com.

It is what we use and have a ton of success with it.

Looking for lease addendums for Anyone using RUBS for electric, water/sewer, and gas in the state of Texas. Want to make sure I get the language correct for state prescribed formulas. Thanks!

@Ben Leybovich Congrats Ben!

If you are a new investor looking to get in the game with an easy lift, this is your property. I purchased this SFR rental house in downtown Tacoma, WA, about a year ago but must sell because of a military-relocation. We completely renovated the kitchen and bathroom, as well as other smaller items to bring the property rent-ready. All work was completed by licensed/bonded contractors and permitted/inspected. There is a ton more "meat on the bone" for the buyer of this property. Take advantage of this high-appreciation area while generating $350/mo monthly cashflow on day one. Wonderful tenant is in place, lease through December 2018 ($1,375/mo). From there, re-lease, or complete remaining rehab items to flip. Tap in to the powerful downtown Tacoma market as many are priced out of Seattle. Can close as soon as August 20. Bring all offers!

I have a 16-unit value add multifamily under contract and the lender I am using is jeopardizing the deal by not getting things done fast enough. Due diligence through 7/19 and closing 8/3. If anyone has a highly recommended and reliable lender that can move fast and not rely on all 3rd party entities that takes weeks, please message me. Thanks

All good points mentioned above. We have found that thorough research and understanding of the various types of lending out there allows you to fit a particular property/deal to a particular type of lending that best suits it. If I come across a small multifamily that needs rehab and I need to move quickly on, national hard money lenders can work well for that. Patch of Land, RCN Capital, Lima One, Corevest are just some of the big players out there that only look at your credit score (no DTI or income), mandate you hold it in an entity (LLC, etc), and can underwrite within two or three weeks. Is there a cost for this flexibility? Of course. But if factored in on the front end, and strictly for use in acquiring and repositioning a property so that you can rehab, lease up, and season in preparation for refi’ing on to permanent debt service, a 1-2 year interest only product has its place in the market. Another point that I rarely hear mentioned, is that commercial loans keep mortgages off of your personal balance sheet. This can be a factor depending on your situation, but in mine, going through a drawn out underwriting process everytime I buy a property is just annoying. Constant calls to my full time employer for employment verification, hard queries to my (and my wife’s) credit report (the wonders of community property states), etc etc. The point is there is something to be said for keeping the real estate business separate from your personal financial life on paper. So that when you go to get a new car, those rental properties don’t potentially affect your ability to qualify. Just something to consider that I don’t often hear people take note of.

@pat jackson did you ever buy that fourplex? What did your debt service research reveal? I am curious because there is some varying advice in this thread. You absolutely can “treat” a fourplex as a commercial multifamily, repositioning and stabilizing, lowering expenses, increasing rents, etc, subsequently increasing NOI and value. Just know that you will run in to lenders and appraisers who will think it HAS to be treated as a residential property, but that is not the case. You can request an income approach appraisal (may cost you extra) in addition to a sales comparison approach, provide the lease agreements and P&L for the property, and see where the numbers fall. We have done it on numerous occasions. Having done both SFRs and small Multifamilies, I prefer the BRRRR method on multi’s because you have WAY more control over the aspects that drive the value. My two cents! Lets us know how the project went!

I agree with what many have already said. I have spent months repositioning SFR rentals and at the end, realized it would have been exactly the same amount of work to have taken down a 4,5,6, or 12-plex instead. First determine what your goals are and what kind of portfolio suits you. As far as commercial loans, I agree with those above who have said it is overblown how hard they are to get. They are not better or worse, just different. They are well suited for a different asset class. Yes the amortization periods tend to be shorter, and the rates tend to be a point or two higher. But that is the cost of doing business outside the residential realm. If you factor it in from the beginning, you will be just fine. There are also a lot of ways to acquire and reposition small multifamily properties, where rehab funds are required, utilizing local lender bridge loans or large hard money lenders. With so many more in the space, rates have been driven way down. Again, a few extra points annually, but many are interest only for 12-24 months while you stabilize and lease-up the property, season, and refi on to permanent commercial financing. What I see most on BP forums is the notion that commercial loans should be avoided. That is just not the case and only makes sense strictly when compared to residential loan terms (longer amortization and low, fixed rates). But if you want to scale up to multifamily (5+units), commercial is the name of the game. Good luck!