All Forum Posts by: Donald S.

thank you Joel, looks like I'll need to keep shopping to find better terms. This particular bank only does 3 or 5 year terms. 

Hi everyone, I had a few questions specifically for Commercial loans. 

If the bank says they'll finance 80% LTV based on their appraisal, that doesn't mean they'd finance 100% of the deal if I got a low enough offer price does it? They'd still cap out at 80% requiring a down payment, i.e. apprasied value 200k, but I'm buying it for 160k, they would still only finance 128k and want me to cover the other 20% correct?

How do people pay off a 5 year balloon, just refinance if you don't have the capital? I suppose this is a way for the bank to make more over time, expecting you to have to refi at a higher interest rate? 

The bank requires rent rolls and operating statements for the property, so I should negotiate the deal 1st, get it under contract contingent on financing and then go to the bank? As opposed to getting a preapproval like I would with a conventional mortgage. 

Anything else I should look for or ask about for commercial loans? 

thank you @Derek (I still can't tag from my phone), I did do the numbers on the conservative side. 

@Michael I should be getting rent rolls and copies of leases today. I haven't been to the property yet so haven't seen the major system life span yet, except that the roof is from 08 so it should have another 15 or so years left. 

Thank you both of you for double checking me. Hopefully I can get this deal done. 

Hi everyone. Got a potential property I want to make an offer on, wanted to run it by some collective mind stress testing. 

5 family, 4 1+1, 1 2+1 

Max purchase 190k

Rent 2600/mo (room to raise)

PITI 1225/mo

25% down, 25yr fixed @5.5% 

Closing 3k

Down payment 47500 

Vacancy 8.4% 

Repair 5%

Capex 5%

PM 10%

Landlord utilities 150/mo

DCR 1.56

GRM 6.09

2% rule? =1.33% 

Cash flow net $486

COC ROI 11.2%

Currently fully occupied, c+ neighborhood, only multifamily on the block, room to raise rents to ~2750 easily. So thoughts BP? 

hey everyone, I'm in StL and would like to get some suggestions on local GC's who are reliable, not cheap but not overly expensive, and of course like working with rehabbers for rentals. I know having a good GC is extremely important to make sure your flip or BRRRR rehab stays in budget. So any suggestions?

Congratulations! looks like you had a heck of a time. Hope to see more of your success stories as time goes on. 

Hi everyone, 

So I'm looking into starting a direct mail campaign to start finding deals, as I keep hearing especially on BP Podcasts, that it is the most effective (and cost effective) way of finding truly off market deals. My question is twofold stemming from the same core issue. 

1. Is it worth it to spend ~$1000/month or 2 on Direct mail marketing if I could only do maybe one deal at a time, that is one every 6 months or so unless I can find a partner or investors. 

2. Is it worth doing Direct mail at all when I would have to use either hard money (if I can find a good enough BRRRR property), or conventional loans? Since I wouldn't be a "cash" buyer I'm not sure if it would really be effective.

I'm wanting to get into small multifamily landlord properties using BRRRR preferably.

Thanks everyone for any help or suggestions.

p.s. question: What should I actually put on the postcards or yellow letters? I'm thinking postcards because I hear they give a better return ratio on calls/deals.  

I found a couple places that would do the finanacing needed for a BRRRR, but so far haven't found the right property. The one I thought I'd be making an offer on took his property off the market the day after I posted this.

Hey Bob feel free to PM me, I have a great Realtor, especially if you're looking for more "rent ready" SFH (SFR? eh, either way).

I agree with @Kyle Eckert, while I'm not looking for turnkey properties strictly speaking, if offered a good deal it would be a hard choice. There are plenty of neighborhoods in the area that you can find the 80-120k in a good C to B- class area.