All Forum Posts by: Edward P.

Hey Guys,

I am looking to purchase a new investment apartment soon. Is it best to pull money from a LOC or to Refi the loan? I assume the Refi is more difficult but the LOC costs more. Do banks allow for LOC on an investment property?

Thank you!

Finding private lenders are difficult but doable(I have not found one but I know I will). @James Ihssen I agree with you on the FHA restrictions I do not know they will even do any of this. Worth a try.

I am going to start going to RE meetings found on Meetup.com in the LA area to find out more. 

I hope you have an easy search!

@Susan O.

I understand what you mean I currently own a rent control apartment and the tenants are planning on staying for a long time. I believe with minimum wage going up in Los Angeles they may/may not leave the property and move to a better place.

The system works to the benefit for the tenants but I have kicked out tenants with the right law team. So there a huge give and take with rent-controlled properties. 

Hey @Heidi Neilson

Congrats on finding BP its an amazing place to find what you need for all of RE. I have some properties in the not so good areas of LA county ("C" properties). I hope the best for you if you need any help let me know.

GL!

Hi Dean,

I am not sure this is the best way to go about it. Are you able to find traditional lending after you get the money from the P2P lending source? 

@Nghi Le Thanks!

@Dustin Beam Well written. 

So to confirm, any property bought under an LLC is automatically a commercial loan?

@Elaine Fawcett I would speak to a lender who can assist with loan to get them in a timely manner. I am closing a property in 15-30 days but I am not going to a traditional bank. They usually cost more and need more paperwork (jump through) more hoops.

Thank you all!!!

@Ivan Barratt Hard money loans are at a higher percentage and the  cap rates I am seeing near USC do not justify.  For example this Property ($569K, rent roll: $3,450, mortgage would be about 2,500 not inc other exp.) I am not sure if it is worth getting a 10%-20% hard money loan. Let me know your thoughts.

@Steve Vaughan I would love to be a owner occupied near UCLA (looking for duplex) but they are about 1.7M-2.5M. I do not have the down payment because I would love to have at least the mortgage paid by the renter.

@Nghi Le I plan on buying and holding on to them. I will repair before new tenants move in, its hard to find a vacant unit in these properties near USC. I understand the BRRRR strategy but is it worth it for the property above? What are the terms for a bridge loan?

Appreciate everyone's response.

@Travis M.

Few tips:

1. Try to stick to a 4 unit because it is given a resi loan(30 year) compared to 5+units which is considered a commercial loan of 5 years. 

Make sure you have a RE Agent fighting on your side. Some sellers are "over-pricing" their properties because of the influx of overseas buyers with all cash offers.