All Forum Posts by: Brian Garrett

Your best bet is going to be local community banks and credit unions for a commercial/portfolio loan.

Where in FL is the property located? I may be able to recommend someone for you depending where it's at.

Syndications, NNN and HML are probably the three best routes for the most passive income.

The best place to find commercial multifamily is through brokers who specialize in this asset class.

Cap rate is important as it's an overall reflection of your return but it's more important on stabilized deals.

A lower cap rate can actually be a good thing on value add deals since it ultimately increases the value more.

Of course you still want to buy at the going cap rate for the market at least and not overpay to force a deal.

You want to refinance after the rehab so you can capture the forced appreciation and the higher appraisal.

You would need to refinance out of the hard money as quickly as possible.

You just have to make sure the deal can support the hard money costs until you're able to refinance out.

I've been thinking about buying vehicles and listing them on Turo as a new investment vehicle (pun intended).

Does anyone here currently have vehicles on Turo who would be willing to share their experience?

I'd love to hear opinions on this strategy, any tips and tricks you have and/or any advice for someone starting out.

Do you need to get a different type of insurance policy since the vehicles are being rented out?

Is there a way to see a calendar or know what type of vehicles are being booked the most in a certain market?

Are you concerned that ride-sharing services like Uber and Lyft may ultimately hurt the demand for rental cars?

Would love to hear from anyone who is actively renting vehicles on the platform and welcome all feedback!

You should do both and compare the rates and terms that you get.

With a commercial loan you'll generally be looking at something along the lines of 20-30% down, 3-10 year fixed, 20-25 year AM and a rate about 1% higher than conventional.

Of course this is just a ballpark and a rough idea of what to expect.

I've seen some lenders do 30 year AM and even some who offer a 30 year fixed program.

Anything over 5 units is valued based on the NOI and market cap rate.

You need to take the current gross rental income and deduct all expenses to come up with the NOI.

Make sure you are accounting for vacancy, CapEx, repairs and maintenance, property management, etc.

Then take the NOI and divide it by the going cap rate of similar properties in the same asset class.

If you don't know the market cap rate you can get this information from a local commercial broker.

This will give you the value so you can determine if the asking price is in line or what you offer should be.

Another reason is if you find a property that you need to close on quickly and don't have the time to wait for a traditional loan to go through the underwriting and approval process.

This is common in situations like buying from a wholesaler, distressed owner or a competitive market where a "cash" offer can help you win the deal over someone using financing.

@G. Doby 

I agree with Nate that you don't need to use a HML given your scenario.

To answer your question the main reasons people who BRRRR use HML's instead of bank loans is:

1) Most of the time the properties need too much work so it doesn't qualify for conventional lending.

2) They want to avoid having to pay closing costs twice on the purchase loan and on the refinance loan.