All Forum Posts by: Freeman Schultz
Freeman Schultz has started 51 posts and replied 109 times.
Post: Is this a bad time to do a cash-out refi?
- East Coast
- Posts 109
- Votes 12
Quote from @AJ Exner:
I think that fluctuation in responses shows the variability of real estate investing. What's good for one person might not (and probably is not) good for someone else.
I guess I can share where I am, I'm getting ready to refinance my investments because I had purchased one a little over a year ago and its already appreciated a decent amount and its sitting at 7.99% (still cash flows, but getting 6.25%) while the other is in a construction loan that won't mature until the end of the year, but I would rather have the cash now than the cash flow.
I do have one other that has some 'golden handcuffs' (tons of equity, 2020 rate), but at some point I have to reconcile that the cash now to purchase more investments will help me at this stage in my journey than to build it up slowly. I guess it would really have to depend not just on who you are as an investor, as it does where you are in your investing journey. At some point, I will not worry about building and expanding my portfolio, but rather in growing equity and cash flow.
Alas, I am not there yet, so I would say that you should refi. But I am a random internet man, so hopefully you have a good grasp on your goals and can decide based on that and not random internet people.
Good luck! Happy to help if I can
Thank you for sharing. FWIW, you are more than a random internet man, that goes for all of you who responded.
"I think that fluctuation in responses shows the variability of real
estate investing. What's good for one person might not (and probably is
not) good for someone else."
That was the consensus I got from those people. It is also the consensus I am getting from the responses. Which is good. Because it means there are multiple options, but each one depends on a where you are and what your goals are.
Which is whyd eals are always happening whether the economy is at its best of worst.
Post: Is this a bad time to do a cash-out refi?
- East Coast
- Posts 109
- Votes 12
Quote from @Nadeem Alamgir:
@Freeman Schultz
It really comes down to the deal. If you’re pulling equity to put into another property that cash flows enough to cover the higher debt, it can still make sense even at today’s rates. If you’re just pulling cash without a clear plan or strong numbers then yeah you’re taking on extra risk.
It’s less about timing the market and more about making sure the math works with today’s payments.
That is the thing, no one can really time the market. It is more important to have a plan in what to do with the money and the numbers work out. A person is asking for trouble if they do not do that.
Post: Is this a bad time to do a cash-out refi?
- East Coast
- Posts 109
- Votes 12
Quote from @Casey Osborne:
It really depends what you intend to use the cash out refi proceeds for. If you have a pressing need for the cash go for it. But if your goal is to reinvest or buy other real estate it may not be the best time given rates, prices being near all time highs, and uncertainties with economy.
Before the GFC, everyone was doing a cash-out refi left and right. There were a lot of people who were doing a cash-out refi because it was easy money, until the other shoe dropped.
The environment not very hospitable in terms of interest rates.
Post: Is this a bad time to do a cash-out refi?
- East Coast
- Posts 109
- Votes 12
The responses were the following:
It does not matter whether it is a good or bad time. As long as you can cover the monthly mortgage payment.
Interest rates are still too high and if you to refinance, then avoid the cash-out refi.
Avoid the cash-out refi, but pay off some of the principal and refi was is left.
What does everyone think?
Post: Questions about smart thermostats
- East Coast
- Posts 109
- Votes 12
I have been hearing a lot about smart thermostats particularly the ecobee premium smart thermostat and the Honeywell smart thermostat.
Has anyone used these smart thermostats in their buildings?
Are there any risks associated with smart thermostats?
So far, what I have found online is a mixed bag. Some say they are great, others say there are issues.
Post: Questions about refrigerators and appliance repair service
- East Coast
- Posts 109
- Votes 12
In regards to refrigerators, what is everyone's opinions about GE, LG and Samsung?
Has anyone had any experience with their repair services? GE has Bodewell, LG has LG Premium Care and Samsung has the Samsung Care Network,
Post: Fitness center questions regarding windows
- East Coast
- Posts 109
- Votes 12
Anyone here have any experience or background in fitness center design?
I recently checked out a condo for investment purposes. The agent was giving me a tour of the fitness center located at the top of the building. It looked all very nice, but, I made a comment that there was a lot of windows and it was very easy for people walking by to look inside
The agent told me that windows and open spaces were now industry standard gyms due to safety issues. That more windows meant more safety because nothing could be hidden.
I took the what the agent said with a grain of salt.
I am not an expert, but my thinking is that more windows, mean more exposure and less security.
Can anyone here confirm what the agent was saying?
Thank you.
Post: Recommendations for a refrigerator
- East Coast
- Posts 109
- Votes 12
I am looking into replacing a refrigerator and I have narrowed it down to LG or Whirlpool. What do you think is the best?
Post: When do you begin the refi process for a commercial mortgage?
- East Coast
- Posts 109
- Votes 12
Quote from @Robin Simon:
Quote from @Freeman Schultz:
When it comes to a commercial mortgage, do you just wait until a couple of months before the mortgage reaches the maturity date before looking into refinancing or do you start the process within a year before the maturity date?
I have heard of some investors not even waiting the 5 years on a commercial mortgage to refinance and as soon as they are able, they immediately do a refi.
You should certainly start the process earlier than maturity, especially at the very least within a couple months of the maturity date - there can always be things that cause delays and pushes and even missing the maturity date by a couple weeks can have harmful consequences (since it will technically be a default / missed payment even if the lender is OK with it).
Also, commercial loans even with the strictest prepayment protections / lockout periods will almost always have at least a 3-month open period prior to the Maturity Date
Thank you for your response.
I am beginning to see that a you should at least be prepared a couple of months before the maturity date. There is always some type of delay or something that causes the maturity date to be missed.
I have had ddiscussions with other investors where some of them said that there is no point in actually in starting the refi process until the maturity date due because then you will have a better idea of what the interest rates will be. However, I have heard from other people that you should be prepared because you might need the money for another property.
Post: When do you begin the refi process for a commercial mortgage?
- East Coast
- Posts 109
- Votes 12
Quote from @Erik Estrada:
Quote from @Freeman Schultz:
When it comes to a commercial mortgage, do you just wait until a couple of months before the mortgage reaches the maturity date before looking into refinancing or do you start the process within a year before the maturity date?
I have heard of some investors not even waiting the 5 years on a commercial mortgage to refinance and as soon as they are able, they immediately do a refi.
Hey Freeman,
This depends on your goal. Will a refinance increase your cash flow? Will the refinance help you cash out on equity to buy more rentals? If it's reaching maturity and you are planning to keep the property longer, maybe you will need to look for a longer term. There are commercial mortgages that are 30 years fixed with no balloon or ARM.
Thank you for your response.
Well let's just say the owner just wants to refi due to the the mortgage reaching maturity.
I heard something about commercial mortgages that are more than 5 years. I am not sure what they are called though.
You are right about goals. I was told once when it came to refinancing, do not refinance just for sake of refinancing. In regards to what you said about goals, how much of an impact does that have on the timing of refinancing a loan? I am guessing in regards to buying more rentals, if there is a opportunity to buy more rentals, I am assuming that if it is a great market, you would want to refinance as soon as you can.