All Forum Posts by: Daniel J.

@Stephanie P. Neither of those are options for me as I already own a home and don't intend to move. We are going with an LLC to protect our other assets, which is especially important for my business partner more than it is for me at this point.

@Andrew Postell I did think about that route, especially if I can get a letter approving the title transfer to avoid the due on sales clause.

@Andrew Postell Ah ok. No there is not, I frankly just have not run into any, nor known quite where to start with local banks.

@Stephanie P. ah ok, thanks!

@Andrew Postell 

In this case I mean 4 or less. My desire is to start with 4 or less, and then get into a 5-10, and then scale up from there. I know many multifamily people say 100 isn't much different than 10, but I would like to keep my risk as low as possible to begin with to learn.

I do feel like the ballon payment increases the risk greatly. I would rather deal with an ARM, but at least have the flexibility to try and refi or stick with it, vs the potential of having a ballon and for some reason not being able to pay it off or refi. That is certainly a fairly uneducated opinion though, simply based off of general wisdom not experience, so I am certainly open to more education.

Thanks!

Daniel

@Stephanie P. How does a loan not involve a ballon at the end of the terms if the amortization is not the same as the term?

My business partner and I will be using an LLC to buy and hold rental properties. I do have access to a tradional commercial lender we can use, I would prefer to avoid that because of the ballon note though. Are there other good options for lending on small multifamily properties that would avoid the ballon note? I have seen some of these private lending companies that offer similar terms to a traditional mortgage. Are they a good option? I did try searching for an answer on the forums and could not find an answer.

Thanks!

Daniel

@Adil Saeed Welcome to BP! It is such a fantastic resource. I highly recommend starting with the very first podcast and listening to them all. Why are you looking into out of state rentals?

@Account Closed Thanks!

@Ronald Rohde My primary aim is to find someone to look over my leases, other RE docs and deal with evictions etc. I have found an attorney that could do the entity work, they don't do any RE stuff though. If I can find a one stop shop even better.