All Forum Posts by: David Walkotten

@Aaron Porter it’s not bad, I think you could get around the 5.5-5.7% neighborhood on a 30-yr fixed residential loan right now. I got 5.65% in July from a local bank and it sounds like rates haven’t jumped much. If they already pulled your credit you might consider whether it’s worth another pull if you’re doing more deals in the near future....

Finalized the deal yesterday! Now the fun part begins.

@James Kojo Sam Schwass at Arbor just financed one for me.  Very responsive and great lender.

If it's managed then size should not matter. Only in the case of an on-site manager that could not be shared for some reason, you might pay too much for management. But I imagine any decent size metro will have a management company who could do it around 10-12% all-in management cost. 

I went from 17 one-to-four unit properties, to a 24 unit in June, to a 40 unit closing next week. They all have their challenges but just find a good manager who can handle it and I don't see any reason that 24 is too small. 

@Mark Doty I’m thinking quarterly on cash flow

@Mark Doty I’m thinking quarterly on cash flow

@Mark Doty thinking quarterly on profits.

@Mark Doty thinking quarterly on profits.

@Mark Doty my investor ‘s preferred return is 6.5% which is actually pretty high considering he is also receiving equity for the investment. I think 5.0-7.5% is normal if they are also getting equity. It’s a 30-year amortization. 1 year interest only up front and then 9 more years fixed P&I. 10 fixed. Then 10 more years floating for a tOTal 20-year term.

@Mark Doty For some cheaper money consider baking the repairs into the purchase and packaging it into a Fannie Mae loan product. 30-year amortization and ~4.9% interest and 80% LTV on the ARV. Talk to Sam Schwass about it at Arbor. I’m closing on a 40-unit Tuesday that he financed with a Freddie Mac product. Then you need 20% + closing costs (3%) + reserves (5-10%). As mentioned, bring in an equity partner of 20%+. Maybe offer a low preferred return too.