All Forum Posts by: Justin Cooke

@Nick Belsky

Non-recourse not a make or break term. Starting to investigate options at this point and had just come across non-recourse mentioned on several SFR portfolio lender's advertisements, so thought typical in this product type. If better overall terms would consider recourse.

Main criteria in order of importance would be: 1. Reputable lender who is easy to work with on front-end & also on an ongoing basis during servicing - no bait & switch soft quote then change terms, no loan to own type outfits/predatory loan docs, streamlined annual reporting, etc. 2. low long term rate (preferably 30 yr locked fully amortizing), 3. ability to harvest some built-up equity w/cash out (not necessarily max this out would run numbers on various scenarios), 4. then several other secondary-level type terms to consider in overall picture: competitive upfront fees/closing costs, pre-payment penalty length/terms, recourse/non-recourse, assumable/not assumable, max LTV, desktop vs full appraisals, etc.

I have built a SFR/duplex/fourplex portfolio using mostly BRRR strategy over the last 5-6 years of about 85 units. I have most financed with local banks/CUs with good commercial terms - 10 year terms (on average), 25-30 yr am, mid-4s rate on average, full recourse. I would like to consider a cash-out 30 year fixed SFR portfolio non-recourse loan. Any suggestions on lenders? What are competitive rate & other terms currently? Can share any other pertinent information via private message if needed for selecting appropriate lending options. Thanks.

@Steven Loveless I have five units in fort Smith that I originally self-managed when I lived in the area. Trinity Multifamily has managed since we moved away about two years ago. They've done a great job for me. I'm happy to share any further details; just PM me if you'd like to discuss further.

I have some experience with Section 8, but have never run into this before. With other tenants Section 8 has accepted my asking rents. The FMR in my area for a 4 bedroom rental is $1,099 per month. I approved a tenant application and filled out their rent reasonableness form; asking $1,075 per month rent. Their Section 8 worker has told them the highest rent Section 8 would be willing to pay is $860 per month. The house was just purchased and completed renovated, has all appliances, off street parking, central heat and air, I've found two other current non-section 8 rentals listed for rent within a mile from my property for $1150 and $1050. The tenant states they are happy to pay difference if needed (in their current rental section 8 pays 100% of their rent).

So, my questions are: is there a way to rebutt their workers opinion of rent reasonableness (I already asked tenant to explain I got FMR straight from section 8 website and mention other comparable non-section 8 rentals)? If not, can tenants pay difference in rent if it's above rent reasonableness as determined by their worker (I have other Section 8 tenants that personally pay a portion of their rent, but rent is within deemed rent reasonableness).

Thanks!

thanks everyone for the info.

@Bryan Hancock

The intent is to hold long term for investment.

The referenced sentence is in Chapter 5 bottom of page 46.

Tax experts please help...

I'm reading the book, Principles of Real Estate Syndication by Samuel Freshman.

From book "There are certain tax advantages allowable with respect to new construction of residential income property in that a 200% declining balance depreciation schedule can be used." No more information given on the subject.

This is the third edition of the book, so I'm not sure if this statement was updated and is still accurate with current tax rules.  My questions are, is statement from book accurate? Does just the fact that it's new construction allow you to use double-declining balance depreciation schedule, carte blanche for entire time you hold asset? Or, is this only allowable in year/s that construction is in progress? How does this work?

@Shane H.; @AJ Hernandez

I did live in Arkansas for two years, but Fort Smith area not Little Rock.  I don't know that market.  Good luck!

@Account Closed

Deal ended up falling through.  Too many moving parts and not right timing for out of area/money partners.  Definitely learned a lot, so good experience anyway.

Negotiating on a portfolio of condo units in Wichita, KS. Looking for a good local real estate lawyer to review HOA documents, other documentation, contract work, etc. Thanks in advance for any recommendations.