All Forum Posts by: Craig Rismiller

This looks great Will! Congrats and I wish you a quick sale.

My family will be moving to Chicago next spring for work and we are starting to think about where to live. Here are our requirements:

1. This will be our primary residence, so it must be in a good neighborhood
2. We will have an office Downtown and Schaumburg, so preferrebly we would live between with L access
3. I am a real investor; so I want to buy a property where I can create value. Depending on the price point, I would be very open to a 3 flat or 4-plex. Big rehabs do not scare me (actually prefer this so we can create our own space)
4. The location needs to be affordable...we are not millionaires yet:)

Thoughts / Suggestions?

What age are the buildings? I think over the long-run 5% for all-in maintenance is going to be too low...

Things to consider with maintenance:

- What age are the buildings
- Do you need capital improvements to make them rent ready
- Does your management company mark up the prices of repairs (my experience is maintenance is normally always higher when using a PM)
- Does your 5% include the cost of getting your units ready for new tenants?

I have knowledge of the MO market but even with higher maintenance reserves it looks like they at least pencil out on paper.

5% APR
15 Amortization
10 year fixed / balloon
70% LTV based on Purchase
No points -- total closing will be <$3,500

Overall I am absolutely thrilled with the terms given the complexity of this deal. I guess the morale of this story is don't give up on a deal -- we had to call over 25 banks to find this one. Closing will be in ~3 weeks so let's hope everything goes as planned.

--Craig

Thank you to everyone for the responses. We were able to find a small community bank to make this loan so we no longer are seeking a private lender.

Here are some additional details, if you would like to see our loan package please message me:

- We are looking for a 2 to 3 year term
- 4 of our 6 units are leased and we should have the last two leased within the next week or so
- Our rents average out to $1000 per unit per month
- Our monthly HOA, taxes and insurance is ~$230 per unit per month
- We invested ~$20k into capital investments / deferred maintenance to make them rent ready
- The units were purchased in Oct of this year

We picked up (6) non-Fannie conforming condo’s last month in Phoenix, AZ that we would like to refinance out of Trustee Sale Hard Money. Ideally we can find a private lender that doesn’t charge the typical hard money points. Here are the details:

• 7 units total in complex. We own 6 and control the HOA with our 85% voting power
• Units were built in 2007 – and are in the higher-end in terms of finishes
• Our personal FICO's are 730+, with good outside REI income
• Our purchase price was ~$490k, with the current market value of ~$650k
• We are seeking $300k, which will put the LTV at 61% based on purchase and 46% based on value
• We are looking for a 2 to 3 year term, with a rate of 6 to 8.5%

Does anyone have any leads? We have spoken to at 20 plus local banks but because these are all deeded separately as condo’s they are not interested.

Thanks!

For the big gift card buyers you should try ordering directly from Lowe's. It looks like if you buy $100k+ then you get a 4% discount. These should be much easier to use because of the higher dollar amounts...

http://www.lowes.com/pdf/corpForm.pdf