All Forum Posts by: Cody Begg

Hey BP. I am an investor looking to start a new portfolio in Miami and sweetwater area. Looking for a place to live first. New job sends me to Miami area. Any realtors available for a quick neighborhood tour Tuesday afternoon ?

4 plexes and condos yes.

BP,

I am consolidating a loan on 4 properties to 1 commercial loan.  (Need to get them out of seller financing deals and want to make room form more conventional mortgages)  I have been proposed the following deal and need help considering it.  The opportunity is to reduce some interest rates and to consolidate 4 properties into 1 loan if that is a good idea but it is also to develop a banking relationship for long term growth.  Thoughts?

Principal Balance: $385,000

Rate: Prime + .75% floating, with a floor of 4.75% and a cap of 7%

Term: 20-year amortization, with a balloon in 5 years. With an option to extend at prime + .50% for another five years if there has been no monetary or technical default of the loan.

Fee: .50% origination fee

Release Provision: If any property is sold the remaining properties must equal a 70% LTV ratio, of the loan.

Appraisal fee to be paid by the borrower of all the properties.

Legal Fees paid by the borrower along with title insurance and associated fees.

Borrower will open up a commercial account for all of the rents to be deposited into, and has agreed to have the payment auto debit out of the account on a monthly basis.

@Tom Giles  PM Me.  I live in Bryan College Station and would be happy to help navigate the decision on a local level!  There may be some more options that would work and solve all of your problems!  Great investment though Congratulations!

@Dante Pirouz  Hey! Thank you for the dialogue...  Awesome feedback.  Let me try to continue the discussion...

There is definitely room for future rent growth.  The current owner is neglecting and very undervalued, though it may take some "tenant upgrades" to command market...If that makes sense.

Second, my anticipation is that if I refinance, it will cost less to refinance the debt in long term, which is why I am anxious to re-finance prior to seasoning.

The nice part of the deal is that the out of pocket is relatively low considering and closing the deal is easy with seller finance.

@Chris Mason.  Thank you for the dialogue!  Time zones are tricky! 3 coffees in and I'm an hour away from a first beer!   Worst case is a 6 month reprieve from future endeavors as I assumed upon contemplating the deal!  

@Chris Mason Correct.  2 parcels.  I am hoping to use appraised value, so likely need to wait 6 months.

@Marco G. I want to re-finance right now and get away from the seller, but most conventional banks I speak to are saying I have to wait at least 6 months to refinance.  I purchased last week.  

Additionally, If I do refinance, how do I get the lender to use loan to value instead of loan to "sales price"

Bryan College Station, TX

2 4-plex properties (side by side)

purchase price: $318,000

Seller Financed on 2 liens 1st lien 80% LTV 20 year note at 9% second lien for 10% for 2 years at 9%

10% out of pocket.

Monthly Rent of $4,200

Annual taxes of $4K

Insurance of $2K

Self managing at the moment.

How do I refinance the seller financing before the "sesaoning" period in order to get a new appraisal.

Hey All BPers,

So, I stepped outside of my comfort zone in investing thanks to BP Podcast inspiration!  I was inspired by all of you saying "Just Do and you will learn".  

I found a property that passed all of my litmus tests: numbers listed below, but here is my question.

I am relatively confident that I purchased a deal with some equity already built in, by seller financing the deal.  Now what I want to do is re-finance and possibly pull some equity or at least get out of the seller financing deal to lower my rates?  This is my first deal of this magnitude...Hoping for some direction and options!  

How do I refinance before the seasoning period? Or should I wait 6 months?

2 4-plex properties (side by side)

purchase price: $318,000

Estimated Appraised value $400K

Seller Financed on 2 liens 1st lien 80% LTV 20 year note at 9% second lien for 10% for 2 years at 9%

10% out of pocket.

Monthly Rent of $4,200

Annual taxes of $4K

Insurance of $2K

Self managing at the moment.

Any suggestions??  I would love to finance enough to pay both liens!