All Forum Posts by: Clark Kirkpatrick

I have a commercial loan on a residential property. The loan was originated in January 2020, and in May 2020 I got a letter requesting me to send in a personal financial statement and my 2019 tax returns to the lender. 

All payments on the note have been paid in full before they were due. The loan is in the name of my company, and I personally guaranteed the note.

Is this request for info normal? I don't like it that 5 months into a 20 year mortgage, when this info was collected to originate the note, the lender is asking me to re-submit this information. Any guidance here is appreciated.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $150,000

This is a beautiful old triplex that had been let go for many years. We're doing an extensive rehab on it as vacancies occur to bring it back to its original beauty. Financed with a commercial bank loan along with a promissory note to the seller, so that we brought $0 to the closing table.

How did you find this deal and how did you negotiate it?

I work with a handyman who also works with the previous owner of this property. The handyman connected us and we negotiated a deal.

How did you add value to the deal?

We bought this house in very rough shape on the inside and outside, and it will likely take a year or two to get it all finished as vacancies come up. We're fixing roof leaks, broken doors and windows, leaky plumbing, knob and tube wiring, non-functional bathrooms, landscaping - the whole nine yards here, over time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

The seller of this house is an excellent CPA who's a real estate investor and business owner, and I'm very glad to have met him.

Hey @David Smith, I invest in Pottstown. Cap rates are good, crime is not that great and not that bad (depends on the area - some places quite safe, some places slightly sketchy but nothing like north Philly), the area is coming up with a lot of new business investment but hasn't historically seen a lot of appreciation. We'll see what happens when business restrictions are lifted, but the local economy has seen a lot of investment over the past couple years.

Hey Zach, I'm house hacking in Pottstown. Steve is definitely right about the meetups - Pottstown has a good one, and you can find them on meetup.com. Feel free to reach out if you have any specific questions. Cheers!

Hey Ben, I'm an investor in Pottstown as well. I'm house hacking now and that could be a good option for you as well. Feel free to message me if you'd like to discuss anything - it sounds like your expenses are low, and you're in a position to get started!

Thanks for posting this Heidi! It makes me wonder how the borough will respond - they certainly won't be abandoning inspections. I know they used to require an inspection when a tenant vacated a rental unit, so I wonder if they'll go back to that?

Investment Info:

Single-family residence private money loan investment.

Purchase price: $46,000
Cash invested: $76,000

This is a BRRRR deal on a 4-bedroom twin home. It wasn't in terrible shape when I got it in September 2019, and by the end of the year the rehab was complete. The flooring contractor accidentally lit the kitchen on fire with some chemical-filled rags, just to spice things up a bit.

Investment Info:

Small multi-family (2-4 units) private money loan investment.

Purchase price: $46,000
Cash invested: $50,000

This is a duplex that I bought as a foreclosure from HUD. Purchase and rehab costs are covered by a private money loan, and the refi will come in 2020. House had been vacant for over 10 years and was a shell, so we had a blank slate to work with. We are taking it from a 2-bed unit and a 1-bed unit to two 2-bed units.

@Craig Eppler They’re coming along well overall, definitely with some frustrations here and there though. Send me a message if you want to discuss further, I’d be happy to assist if I can. 

Thanks for the responses, everyone!

@Chris Mason I actually do appreciate this level of transparency... this is why I asked on here instead of just assuming it was some scam. I noticed that my fees were lower in a similar mortgage I got a few months ago, but the interest rate was higher on that one as well. Interesting.

Do I have to pay that as an up-front cost, or can I elect to not pay the discount points and instead accept a higher interest rate?

Thanks!