All Forum Posts by: Clarence Watkins

Is this a good deal? I have a refi offer of $180K at 60% LTV and at 8.375% int. for 30 years taking out 3 to 5 year balloon situation on mixed use 5-unit, 3-story, brick, 100 year old, unique, vintage building, of apartments and storefronts. It has been moderately rehabbed. The AGR is $58,000. The NOI is $37,000. The cost of financing is my concern. I am self-employed, need a no doc, stated income loan, project based only loan. What should the appraisal, loan costs, and closing costs be? Is a total of 4 points too much? It also carries a declining 5 year, 5% pre-payment penalty - Is this customary? Thank you for any thoughts, ideas, questions or advice?

@Andrew Fallwell Thanks for your response. 

@Scott Jensen Hi Scott. Your what type of engagement question is very helpful and worth considering. Also, whether or not the financial advisor needs to be local is another good question. I’ll think about these and get back to you. Thanks a lot.

@Adeva Edobor I agree if you can keep your costs low.

@Dennis M. I agree if you can keep your costs low.

@Paul Allen I’m glad to have engaged you. You are welcome, but thank you for taking the time to answer my questions and concerns -Excellent information. 

@Paul Allen, The tax implications of liquidation our real estate is something I need to know more about too. Thanks for the thought. So, a financial advisor for sure, but how important is it that the financial advisor is also a real estate investor so that they are sensitive too that investment strategy?

@Andrew Fallwell Andrew, as a CFP, do you also have a background as a REI? I am looking for such a combination.

@Paul Allen. Thanks Paul. My wife is and has been in college administration. She’s ready to stop working. She wants no part in continuing in real estate if I were to pass, but I want to hire out the property management when I’m unable to do it. You are right that she probably primarily wants future security with minimal risk or responsibilities. Thanks for your input.

@Randy Bloch Thanks Randy. Good food for thought. Good to here we are in the same boat.