All Forum Posts by: Chris Duffy

Hey @Joe Martella thanks for the input - I should've been clearer. She's my existing tenant. I bought the property a year ago and leased to her. Now we are renewing and I am unsure how to handle her deposits. I said $4500 because I currently have two months of her rent($2850) and if I ask for $1600 more(1 month of the new rent total) it'll put her deposit close to $4500. 

Hi @Michael Noto

I have two months of rent of her deposit currently - total: $2850. That's norm here. I am thinking maybe stipulate in lease to just have that deposit roll over to the new one, but I don't know how that works with the current lease saying she's entitled to that deposit(assuming no damages to unit) and the new one conflicting it?

Newer landlord question - State: Florida - So I have a current tenant in place paying me $1425/mo. Her lease is up mid-march and I am increasing her rent to $1600/mo. which she is fine with. I'd like to draft up a new lease in the next week or so to sign but not sure how to go about collecting more security, if that's even possible. To hedge my risk, I'd like to sign the lease and collect more security but I'm already holding her security deposits from the current lease in place and don't want to ask for excessive deposits.. if I ask for another $1600 deposit I'll be holding almost $4500 of her money until March. If I have her sign a new lease with no new security deposit, I worry she could find something new before the lease restarts and terminate the lease and still be entitled to her security deposit from the previous lease. Should I just stipulate in the new lease that her previous security deposit will roll over and should she terminate the new lease after signing I'd be entitled to those deposits? Any advice on best course of action? Thank you! 

@Faiz Yusufi Thank you Faiz! Do you happen to know a good loan officer or rep from that bank who you dealt with you had a good exp. with that I should ask for ? I'm going to give them a call.

Thank you for the input everyone. @Carini Rochester Regions bank in Tampa, FL. 

Has anyone heard of any banks going higher than 80% LTV on a cash-out refi or HELOC? Particularly in Florida and more specifically West Florida but would be willing to talk to any national lender. I found most banks will go up to 75% and I found one that will do 80%, but none higher. Thank you!

Hi everyone, 

Most of what I've read/heard about the BRRRR strategy is the purchase should really be done with cash in order to increase the velocity of the money by reclaiming the capital/making yourself more competitive/you're likely purchasing something that won't qualify for financing.

I see the logic behind using cash for the competitiveness and financing aspect but am a little hazy on why the purchase needs to be cash and want to make sure I'm getting this correct. For example, If I go after a 100k property with 40k of my own capital(20k down payment and 20k construction costs for example) and after rehab my ARV is 160k and a bank will loan 75% LTV after a seasoning period, it would look something like this: 75% of 160k = 120K. 120k-80k mortgage = 40k. Is the issue here that would slow me down being that now I'd have a mortgage on the original 80k and the new 40k the bank is giving back to me in the re-fi?

Thank you for your help

@Aaron W. Thank you sir! I appreciate the thorough feedback/advice. Best of luck to you as well

@Ryan Sarka and @aj 

@Aaron W. thank you so much for those contributions I really appreciate it! Just one more question - Let's say I went after a 2-4 unit property(one that a hard money lender would lend on without having to show much financial solvency since with commercial loans a hard money lender requires a guarantor too) and I raised let's say 25-30% of the capital in private money and borrowed the other 70-75% from the HML, rehabbed and increased value, then financed out to a conventional bank at 80% LTV to pay back HML. Would I still run into the same guarantor problem at the re-fi with the conventional bank or no because of how much equity is in the property they are re-financing. Thanks!

I would like to raise private money from investors I know personally to syndicate a commercial multi-family project(under $1 million and between 2-12 units). I would act as managing partner. I have never syndicated a deal before. Would a commercial lender only finance a syndication if the sponsor/MP had sufficient financial reserves or is there a way around this? I would come up with the 25% from the private investors then finance the rest of the deal. From what I've read, they require a guarantor which again I don't have substantial financial solvency to act as any kind of guarantor. I read even hard money lenders require a gaurantor for 5+ units. Would keeping it residential(2-4 units) be a better way to go to get started until I've built up more capital? Thank you!