All Forum Posts by: Hamza F.

Hello All,

I am currently evaluating/close to signing up a small mobile home park deal and I wanted to sharpen my pencil on my financing assumptions and was curious as to what folks usually model for leverage, coupon and term for a small Mobile Home Park loan ($~300K to ~$400K of proceeds). My usual lender does not finance Mobile Home Parks so I am in the middle of talking to a few other lenders, but wanted to see what folks usually assume as achievable/realistic leverage assumptions?

Thanks

Hello BP,

I had a bunch of questions regarding LLCs - e.g. liability issues, tax implications of owning assets via LLCs (in-state or out of state), etc.

1) I wanted to know that as a first step (with respect to the legal/liability issues) , what kind of attorney should I be contacting for advice? While I understand there are many ' real estate attorneys', I wanted to understand what kind of specializations should I be focused on for advice (and potentially a long-term relationship) on LLCs?

2) Same question as above for accountants/CPAs.

If anyone has recommendations for attorneys and CPAs in the NY area that could help me out, would love any recommendations.

Thanks! 

One question for you guys, is it possible to run a credit report (via a company service)on the borrower? I always thought that you needed the individual's consent to do so. Concerned about this because the few reports I've received by note sellers are pretty dated.

Thanks,

Thanks for your replies everyone, very helpful!

Hello - had a question on modeling returns on notes (Apologies in advance if this has been answered already, wasn't able to find a concrete answer in prior posts). Wanted to know what metric (or metrics) folks use when analyzing returns on performing notes? 

E.g. I know folks often use a CoC % to analyze returns on rental properties, but I realize that the same methodology is likely not appropriate for notes/fixed income. I currently have a model set up with a Yield to Maturity (YTM) calculation (where I plug in the UPB as the face value of the note) and plug in my bid/purchase price as the current market price, but wanted to sanity check this with folks to see if using a YTM this way makes sense for performing notes (that I'm planning to hold)?

Thanks!

Thanks everyone 

Thanks for your replies everyone. When I inquire with lenders I give them the following info:

Property: Investment rental (non-owner occupied SFH)
Credit Score: >740
Loan Amount: $80-$120K
Required LTV: 80%

While im on a site like Zillow looking at properties, Ill often try to to look up rates (and APRs) and after entering in the information above  I see numbers in the mid to high 4s. But whenever I actually call up a lender, I usually get a soft quote in the range of 5.50%ish and a large bank that I have a long relationship with won't even lend at 80%. 

I just wanted to make sure I was looking in the right place/talking to the right lenders about this and don't want to unnecessarily incur a higher rate if lower rates are available.

Hello BP!

Had a question. What rates are you all seeing nowadays for conventional 30 Yr Fixed loans for investment rentals (new purchases, not refinancing)? I was under the impression that rates were around 5% (or lower) for 80% LTV loans, however im getting quotes for as high 5.75%, and some big bank lenders aren't even doing 75% LTV loans. Am I looking in the wrong place? Or is this the norm?

Also, would anyone recommend contacting a mortgage broker? Looking for loans that around $80 - $100K and I wonder if the loan amount makes a difference in pricing.

Would love any thoughts/advice.

Thanks,

Hello BiggerPockets!

New member here from New York. Have loved reading for forums so far and hoping to contribute to the community as I embark on my own investing journey.

Personally looking to pull the trigger on 2-3 rental/cash flow properties this year in a few markets in the midwest that I am relatively familiar with. Any tips on how to best use the forums to meet/network with folks active in the markets I am interested in? 

Thanks and hope 2018 turns out to be a great investing year for everyone.