All Forum Posts by: Dave Holman

@Jeremy A. Very common. That’s actually low. It’s probably only if you refi with a different bank. Negotiate early next time, sometimes they’ll be flexible.

Hi @Ed Jaroch and @Elliot B. + @RaeLena Morrison I'm under contract on a HPTC project now and learning A TON, so I'm not expert but have spoken to more experienced developers and architects. This is a very complex niche. The credits apply to only the Qualified Rehab Expenses (QREs) NOT acquisition or ARV. So if you buy for 100K, have 500K of QRE and the renovated building appraises for 1M, your credits are based on the 500K. My advice thus far is don't get near one of these without bringing on architects, historic consultants, lawyers (gonna be pricey) and accountants who are experts in HPTCs. If anyone reading has more experience, I'd love to connect!

The borrower is an LLC I own.

A friend wants to buy 10% of my multi-unit property.  How should I value a 10% stake?  If market price were 100K and my equity was 50K (50K of financing) should I be looking for $10K or 5K? Thanks!

Welcome. Happy to grab coffee sometime. Good luck. 

I write all my leases for rent to be due on the 15th of the prior month and offer a grace period until the 1st of the next month at which point a 4% late fee occurs on the 2nd. So it feels like paying on the 1st and late is the 2nd for tenants and it makes the most sense to them. I require tenants to to setup recurring monthly autopay from their checking account to mine via cozy.com. Free for tenants and landlords. In the application phase I make it clear that this is the way tenants must pay. Never had a late payment, no misunderstandings.

Brunswick real estate market is hot, way more jobs being created than lost. Bath is pretty good. Not sure about Phippsburg...I'd keep a database of craigslist postings to analyze market. I'd guess a non-scenic house would rent for 1200ish/mo. Be sure to make LLC and legal docs with a lawyer before doing business with family, everything must be in writing just like with a stranger to help ensure family harmony...Maybe you should rehab and flip the house and buy something more urban to rent that is more likely to cash flow?

@Bernie Huckestein @Carl Hebert I work with Norway Savings Bank. They're great. Very open to negotiating rates and terms on residential and commercial side once they have confidence in you. Atlantic Regional FCU is good too. I'd always check rates with 2-3+ banks before pulling the trigger. This due diligence could save (or cost) you more than almost any other factor in your investment long term.

Hi @Carl Hebert,  I had professionals give quotes and install the units. Given the complexity and high stakes, I would NOT recommend DIYing heat pumps. Licensed master electrician is a key part of this. Install by 2-3 guys of one unit took less than a day. I got quotes from a bunch of installers and came down to Royal River Heat Pumps and Northeast Heat Pumps. RR uses Mitsubishi and Northeast does Fujitsu. Even though Northeast's quote was $400 less, I decided to go with Royal River for a few reasons: the owner Scott had done a great job for a family member and took a lot of personal time to explain things etc and his quote and company seemed much more professional- so I felt like the chances of things going wrong and future service were going to be best. Quotes from furnace and renewable energy companies were all like $1000+ too high, so I'd go with a heat pump specialist. Definitely tell either of those installers I sent you. Good luck! 

@Nick N. Efficiency Maine is offering a huge $750 rebate for heat pump water heaters. I just got another 50 Gal GE Geospring at Lowe's with my discount for $950...So $200 bucks for a 10 year warranty super efficient unit. On heat pump mode in a basement they are perfect, plus they dehumidify the basement.