All Forum Posts by: Dee Culverson

Hi,

Does anyone have any experience with the FHLBANKNY Federal Home Loan Bank - New York rates and how to access?
While I have experience with Residential and Investment property mortgages/loans, I have  not done any Commercial/Mixed-use loans before. It has been a learning experience!

I have 4 offers for loans on a commercial mixed use property, small retail ground floor, 3 apartments upstairs. The loan offer that seems to be the best of these offers is a 20 yr ARM adjusting every 5 years with a 2.5 add to "the index", the index in this case being, "the daily average yield on the 5 year fixed rate advance from Federal Home Loan bank of NY".

My problem/question is, I can't find a listing for any data on this rate. No daily, no historical, nothing. The website for FHLBANKNY looks like you need to be a member to access and membership looks restricted to financial institutions.

Two  of the other loans are based on US Treasury 5 year and that's easy to access and find data on, but not this index. So in summary, the banks all want to loan me money and this seems like the best offer on its surface, but...

Is anyone familiar with it, had a loan based on it, know how to access info on this index so I can calculate the pro/con and risks?
Any other advice?
(and just to b clear - the loan is not directly from fhlbankny, thats just how the ARM will be calculated)

Thanks for your help or suggestions!

De C

Same here - any lenders or banks I have spoken to are referring me to commercial dept. or other lenders. Just wondering what the experience has been for those doing this first time. The differences between commercial and residential investment property loans so far seem quite disparate... I should probably start a new thread and not further hijack this one :)

to answer the original question. most recent offer I 'm considering is 75% LTV 15 year, treasury rate plus 2%, adjusts at 5 and 10 years again to current treasury plus 2%.

I am also looking at a 300K purchase with 1 retail ground floor & 3 residential rentals. Very interested in what banks anyone has worked with in NY State for mixed-use loans too. Or other options that are not double the residential rate. Thanks!

 Yes, writers do get paid. Bloggers are writers of a sort and are often paid. It's called content creation and can be quite lucrative. 

Thanks Fred, I should have mentioned this will initially be purchased in name not LLC.

Hello BP Investors,

I realize a lot of this is based on personal wealth, income, situation etc.
But "all things being equal"...

I have an opportunity to buy an investment property 3 units(2 Family with business on ground floor, all occupied with long term renters) Conservatively it will yield small pos+ cash flow, but have other personal/business reasons for wanting it and holding it long term.

My question is about financing, can anyone advise which of these two options might be the better choice? re: deductions, taxes, rates, expenses, etc. that I might be unaware of going one way or the other. Looking at $300k (financing 80%) in Orange Co. NY State. 15 yr term

Options:

1) Take a Cash out ReFi on a current fully paid for property which would pay for this property
2) Take an investment property mortgage on the property I am purchasing

My reason for asking about this is I have done the cash out refi route before for purchase of other primary SF residential property, but not on an "investment" property. I can't seem to determine how much the different financing methods will impact my tax deductions, costs and bottom line if at all. Other than the obvious that the cash out refi will be at a better rate.

Thanks again for any advice, info and suggestions,
Dee

Did you find anyone in the area and if so how did it work out? @Erik Mazzochi

I am working on a similar model, also in Orange county but no FHA (using my $ to buy low, quick rehab & rent), looking more in Goshen, Warwick, Chester, Florida, Washingtonville.

Good luck and Thanks for any progress reports!

Just started using them recently and had no problems so far with two properties/tenants payments. the tenant on the other hand mistakenly double paid one month! the 5 day payment is a long wait, but otherwise has been good for me. one less thing to remember to schedule :)

Originally posted by @Scott Wolf:

Welcome @Dee Culverson! I'm closing on my first three-family rental in Hyde Park in December. Where do you currently own?

Originally posted by @Will McGuire:

Welcome @Dee Culverson! I have a property in Newburgh. Where are yours? 

Thanks all for the Welcome and replies! My current properties are in Chester & Town of Newburgh.

Looking at a property with 3 rentals. Store front, 2 apartments. Rentals pay mortgage and provide some income.
Had an inspection done and negotiated what I thought was a good deal, 300k (about 10k renovations needed) but after further inspection come to find will need about 30k renovations. 
Do I go back with additional estimates and try to get the 20k difference off our handshake agreement? (nothing on paper yet)
or do I eat my mistake (property will still make money) but I am now in the hole an additional 20k to start?

Mostly wondering if anyone who has been in this or similar position successfully re-negotiated a deal and how it was done.

Thank you!