All Forum Posts by: Eric Van Deman

Without using the Fannie or Freddie product mentioned above, you likely won’t find a lender who will fix the interest rate for that long. Some lenders will have a longer term loan, for example amortizing over 25 years where the interest rate resets every 5 years or so. I have one of those loans on one of my commercial properties. Your available funding will also depend on location and condition of the property as well as the overall loan amount. If you want to PM me, I have a good commercial mortgage broker that I’ve used on a number of deals that operates nationwide. 

@Adam Lacey sent you a PM.

Hi Allen, My wife and I own a few commercial properties, but we have followed an approach whereby each property is held by a separate LLC with a separate loan, so I can't really answer your question. However, through our recent acquisitions I have met an awesome commercial mortgage broker, Nicole Patel with MarkOne Capital. You pay for her services via an origination fee, but in my view her knowledge, expertise, banking relationships, etc. have provided value up and above her fee. If you want to send me a private message, I'm happy to share her contact details.

Kind regards,

Eric

Congratulations Tanner. I have focused on student housing over the past few years as well. While there are quite a few investors who do not like the sector, I have found it to be enjoyable, fast-paced, and reliable and it has generated great returns. While the 2020 pre-leasing window was a little more nerve inducing than other years, I believe with the vaccine on the way and the proven ability to adapt to a socially distant environment, student housing in general will be in a good spot for the 2021 school year and going forward. Best of luck with your investment. 

Hi Naresh,

I think Nicole has some good advice, and having one or more back-up plans is always key. I’m more of a buy and hold investor and haven’t done any flips, so I can’t really share any advice on that front. But from a buy and hold perspective, I continue to look for deals in the current environment. Best of luck with your investing!

Hi Carlos, I would encourage you to continue to think long term. While 6 months may feel like a long time now, in the grand scheme of your investing career it is a very small window of time. If I’m understanding correctly, after you refinance the property, you are anticipating  nearly $500 of monthly cash flow on a $6-7k investment. That is a great return on investment...nearly 100% annually. The six-month window will also give you time to figure out and find your next investment. As you start to stack the cash flow of multiple investments on top of each other, the smaller monthly streams will add up and quickly make you forget about the potential $20k that you could have benefited from a quick sale. Just my thoughts...best of luck. 

@Mike Barone Sent you a PM with my broker's details.  She might be able to help, but I don't know the ins and outs of Broward County insurance requirements.  Kind regards, Eric

Hi Jeff, I've used Nicole Patel from Mark One Capital for multiple loans in different states, including some that are more rural and considered secondary or tertiary markets.  She has been very helpful.  Similar to Mack's comment above, she is a broker and able to access multiple banks.  If you're interested in her contact info, feel free to send me a message.

My typical experience is the insurers continue to increase your rates until you get it re-quoted in the market and they are forced to be competitive.  We've had a number of properties in Florida over the years and Gina Hogan at FLD Insurance has always given us very competitive rates.  Feel free to PM me for her contact info if interested.

Congratulations Jorge.

On-site laundry will be viewed positively by many applicants, but maybe a little less so for a 1-bedroom complex than one with larger units for families.  If you are worried about the maintenance on the machines, there are companies that will install the machines at their cost and take care of the maintenance in exchange for all or a portion of the income generated.  In my experience, if you buy commercial-grade washers and dryers, they are very dependable and you will be surprised by the revenue they generate.