All Forum Posts by: Craig Yarnell

Hi Chad, downtown Columbus seems to be a strong market right now! Is there a value-add portion to this project? Rehab or mismanagement causing vacancies that need to be taken care of before long-term debt? Or is this project a buy and hold of a stabilized cash-flowing asset? Thanks 

Hi Wyatt, depending on your experience and the strength of the deal, private lenders would assist with a 80-85% Loan for value-add multi-family acquisitions. If the property is stabilized and a buy and hold opportunity, then it will be tough to find higher leverage than 75% with a conventional loan . Hope this helps!

Hi Mike, are the 5 properties currently rented and in a business entity name? What's the average value of the properties? For long term rental financing, majority of lenders have a $75k minimum loan balance per single asset, but there are certainly some portfolio lenders in the market that could provide a blanket loan as well. 

Hi Robert, 

5-units falls into the Commercial multi-family category and will require larger down payments for newer investors without a proven track record of similar type deals. SFR, and 1-4 residential properties typically require less out of pocket. Hope this helps. Thanks

@Rodney Turner Typically 1 to 1 but once the subject property is stabilized and either sold or refinanced, the collateral property is released and can be used over and over again. Thanks 

Hi Rodney, cross-collateral would allow you to pledge a free and clear investment property, along with the new subject property, to typically receive 100% of acquisition and rehab costs for the subject project. Depending on who the lien holder is, it's unlikely that you would be able to get a subordination for a rehab/hard money loan behind a traditional first lien, but you may be able to consolidate the mortgage debt with a c/o refi of some of your properties to free up a rental to be used as collateral. 

@Jordan Jacks

Hi Matt, is this a multi-family property or a portfolio of SFR rentals? Is there a value-add component or just buy and hold? Thanks

@Sam Martin works for a B2B Commercial Lender with a large presence in Georgia. C/O Refi to purchase other RE Investments or cross-collateral of Free and Clear rentals are programs they offer. Thanks 

What market is the multi-family located in? In general, we saw a 10-15% immediate value drop in March/April due to Covid, since then prices and values have been on the steady rise depending on the amount of capex or value-add needed and current cash flow.