All Forum Posts by: Christopher C. Welber

I’m in NJ. I would get a contractor in for an estimate if it’s not that much (less then say 5K), I would probably ask the seller to deduct the amount, split it or pay it myself depending on the inspection of the house. I would never buy a property without an inspection myself.

In regards to claims the insurance companies these days have the ability to see all claims on a property and if there are a lot of non- act of god claims like trees falling on the house they can either increase the cost of insurance or outright not insure the property at all. We’re already seeing in some states insurance companies abandoning the market altogether.

good luck and blessings.

We purchased a rental property in Edison NJ and it mentions a landlord Log Book for the property which we should maintain. We’re trying to find out what form it should be in and how to maintain it.

In NJ a landlord registration and rental occupancy inspection are required and we’re trying to understand everything we need to do as a new landlord.

thanks!

What software did you start with? Thanks!

Hello all,

When does it make sense to start using property management software and what fremium and paid options are recommended?

We have (2) properties and we’re looking for the third. These are single family homes but there’s already starting to be a certain amount of complexity.

thanks!

I have a property that we're working on closing. It's a rental. We're trying to get a W2 mortgage because it's cheaper but we have been approved for Asset Based Loans. The main issue with these loans is they're all in the 4.5 to 5% interest range with 2-3 points as fee and large down payments needed to make them work. W2 is at least 1 point lower.

My question that I'd love to get feedback on is when do the Asset Based Loans make sense? I see people taking 6-7 or even 8% sometimes. Is this because there's that much profit/equity in the project? Are these mostly fixer uppers? It seems like you need to be getting 10 to 15% off market price and have a good chuck of profit in a fixer upper for these loans to make sense? For our project 5% is about the limit to still have profitability.

I was wondering what others experiences are with ABL type and commercial loans.

Thanks again BP People! 

So it would be based on 418K no matter what. If we put down 20% then I guess the LTV loan would be about 334K which at around 5% is around $1,800 a month plus $600 tax and $100 insurance is about $2,500 which would still be a positive cash flow. One issue is these loans seem to charge 2-3 points in fees and sometimes the terms can be challenging to meet and have pre-payment penalties. But the scenario still seems workable with the right lender.

I need some LTV lending and bank referrals and guidance.

I'm in a crunch... I just got out of attorney review on a property in Piscataway, NJ. I thought I would be able to finance a 418K property with 20% down that's likely worth 450K on a W2 traditional mortgage but this might not work. Taxes are about $600 a month, plus $100 for insurance. If I can keep total expenses (Loan service, taxes and insurance) below about $2,400 a month the property will cash flow about $500 a month.

So, I'm wondering if anyone has sources for lenders/banks who will make a LTV based Real Estate loans on a property in NJ. I'm not looking for hard money lenders but community banks or similar (i.e. credit unions, local / community banking institutions) who will make this type of a loan on a property in NJ.

Thanks BP-ers!

Hello BP people.

My wife and I are about to finish attorney review on a 5 bedroom single family home in a college town area of NJ. We had planned using my W2 income to support a mortgage on the property, but my company has informed me that they plan to lay me off in the next few months. We have investigated cash-flow based loans but they appear to require a high down payment (like 35% percent or more).

We're investigating the idea of partnering with someone and need some advise as we will have a very short window to line up financing/partnerships.

The deal parameters are:

5 bedroom, 3 bath, 1802 Sq. Ft. build in 1967 in good condition. Only light maintenance would be needed to get it ready to rent.

419K purchase price with 20-25% down.

The mortgage, taxes and insurance will come to about 2K a month. The property can rent out for 2.7 to 2.9K per month in the area.

We're wondering if we put down the 20-25% and put in the sweat equity what would be fair to ask of partner and what folks experiences have been. If we use a partners W2 income does that help or does the mortgage company still want to see a cash flow to pay our primary mortgage?

Thanks!

Hello All!

I'm looking for vendors who will loan money based on the merits of a property and its cashflow value with a 20 to 30% down payment. Does anyone have recommendations. I'm also beginning to explore hard money for certain short term projects,

Thanks!

I would really love to hear members stories about creative financing. I am about to lose my W2 income and my wife and I are trying to buy our second investment property. We have discovered rental based lenders. The costs seem to be about a point above the market rate, plus a point or two to originate.

We want to expand our portfolio and have had pretty good success finding properties in the Edison/Piscataway region of NJ. I would love to hear folks stories of how they put together creative funding and the stories associated with these experiences.

Thanks!