All Forum Posts by: Account Closed

Hi all - I've been shopping around for financing options in Metro-West Boston and stopped into DCU for a general quote and to ask some specific questions. We ran the numbers on a $300,000 purchase, 20% down, non-owner occupied small multi-family. Just before they showed me the numbers they said: "just so you know our closing costs tend to be a little high". The number they quoted was $15,000. Now I am new, however, having invested 100's of hours in BP content, I have never seen an investor estimate the purchase closing costs so high. Just wanted to see what you thought about this rate and what you might be paying elsewhere as I continue shopping.

Thanks!

A 5% load factor is not terrible, but could be slightly better. It seems like origination is probably $4-5K, about 1.5% of the loan. Another $1K for appraisal/closing costs. Then 3 points on the loan brings you to $15K. You may be able to save a little if you shop around.

1 Vote

Originally posted by @Jai Reddy:

@Joel Owens

Thank you. I've looked the other way for STNLs at less than 8 % cap rate thinking, someone just wants to make money by overpricing these for suckers like me to buy, but I now understand their value is beyond just cap rate.

The 8% that you are targeting is at the top of the range for average market NNN cap rates. STNL rates generally range from 5-8% for credit rated tenants with long term leases. There are cap rates over 8% for local/regional tenants and also for multi-tenant investments. These may be better suited for you if you prefer to be close to your property.

I can share a blog post about this topic. Hopefully it helps. - What Are The Typical Returns From Triple Net Leased Investments?

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Your local real estate estate investment association is a great place to start. It looks like Daniel has you covered, so of course BiggerPockets.

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For new Agents, how was your first year in Real Estate? For experienced Agents, what are your goals for 2019?

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@Kyle H. Pre-licencing courses can be taken at a Real Estate school in LA. Online courses are also available. The next step is getting basic training, which is available through your local Association of Realtors and generally through the Brokerage that you join. Make sure that you join a team once you are licensed and are open to pretty much any position that is available. I started by hosting open houses in the Westside/South Bay part of the City.

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Originally posted by @Niha M.:

Looking for a real estate broker/agent who owns investment properties themselves in California (Bay Area). I really want an agent who will help with purchasing investment properties in the bay area. (San Jose, Santa Clara, Milpitas, Fremont, Tracy, Union City, Dublin, etc)

Hello @NihaMathur,

I have a couple of associate agents who can assist you. They are very active in the South Bay.

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Inglewood values will continue to appreciate through the completion of the new stadium and LA Olympics. There is a good amount interest from investors that want to place capital into the community.

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Originally posted by @Vanessa Montoya:

Thanks for your feed back all. I have been in touch with may lenders in my area and I am familiar with FHA and all the traditional programs here in my community. I know that these are pretty standard across the country.

I would like to get in touch with a broker with a farther reach because I am interested in getting lists of clients in default or pre-foreclosure. I figure a broker working with many different institutions would be a more efficient way to get at the information that I am looking for. Or maybe there is a better way? I would love to know your thoughts.

Thanks

@VanessaMontoya It sounds like you would like to buy an off-market short sale multifamily property with FHA financing. Is this correct? There are lenders that can help you out with this.

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@Omeed O. This deal looks pretty straightforward. Maybe consider a 5/1 or 7/1 ARM to get a better rate. Or, see if the lender can do slightly better than 6.2% for a 30-year Fixed. We are seeing 30-year rates between 5.75-6.25% for scenarios like yours. Other than those items, you have a fair deal.

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Hello @Antoine Martel @TD Wolf,

The most popular Fannie Mae and Freddie Mac multifamily products are 80% LTV, amortizing or partial-term interest-only for 7-10 years.

-Going 75% LTV will get you an amortized schedule (30 years) or partial-term interest only for 5-6 years.

-Going 65-70% LTV will get you a full-term interest only product for 7-10 years.

1 Vote

Worcester, Massachusetts

All Forum Posts by: Account Closed

Account Closed has started 5 posts and replied 104 times.

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