All Forum Posts by: David Walkotten

What would you do... I have had a 40-unit multi family purchase tied up in a purchase agreement since February 9 of this year. It is being financed thru Freddie Mac and we have had a ton of hiccups with property condition (Including ceilings collapsing) but are now through all the hiccups. Brand new city certs on all 4 bldgs. The seller has signed 4 addendums for additional time. I get their concern. This will literally close in 13 days and the Seller will not sign an addendum past 8/30. Small chance if I pay an additional 50,000 he will extend it. I’m paying 2.1M currently. What should I do? My investor/partner is putting up 400k but I don’t think has another 1.75M to bridge it. Who knows if we could even close the deal tomorrow... Advice?

@Maugno Mora you should talk to a minimum of 3 banks, even if they are fair. You should compare rates and terms between them. It may be how you are holding title? LLC vs Personal. Ask for a portfolio type cash-out loan product. Just did one last month at 5.5%, 30-yr fixed, 80% LTV. Required quit claiming to my personal name.

How many units? What price? What tax jurisdiction exactly? 

Welcome, Dan! Only look forward - so if you want RE investment property, go out and buy some! The GR market is very healthy right now with great rental rates. 

Rob, I would use a 55% expense ratio on a 2-4 unit property here in GR in this market. Things are selling at around a 7-8 cap on this stuff typically, occasionally lower or higher. You are forgetting taxes & insurance in there, lawn care, plowing. 1% rule is too tight here in my opinion, I'd go for 1.4%. 

PM me if you have any other specifics or want me to analyze a deal you are serious about. 

I would estimate $1800-1950 per side in peak season if it is very nice. $1600 if it's the dead of winter or it's in 1990s shape. 

Best advice is to shop around. Different carriers/agents do better in certain areas. Check with your local Farm Bureau if you have one and shop an independent. 

Quitclaim it to the LLC and it doesn’t count as a transfer? Guessing here.

Typical West MI are around 2.9% of PP annually -or 5.8% of SEV.

@Matt C. you don't need 1000 hits to remarket - you need 100 emails to create a custom audience, but no bottom limit on remarketing. You will want a decent number or you will super saturate those people on even a small budget. 

I do social advertising for a living, and RE for retirement, so let me know if you need any specific advice.