All Forum Posts by: Henry Bagh

@Allan C.its not that the 321 bothers me as much as thinking about paying 5pts+ at the end of it all. 2-3 pts for the interim loan, and another 2-3 pts for the long term loan when rates drop. 

I mean if its standard, and theres no way around it, then sure. 

I plan to make more acquisitions, but at the moment, this one property would use up all my liquidity. 

@Gino Barbaro Just Dm'd you! Thank you!

@Bradley Buxton thanks!

Hello, 

I'm looking to buy a residential 6 unit property (which would require a commercial loan). 

The purchase price is $1.8m, and I have $750k cash. 

What is the best way to go about this? Ive called around, and there is Fannie mae agency loans with competitive rates like 5.9%, with a 5/30 amort. The problem here is it takes 6-8 weeks to close, and in the LA competitive market, that is too long to be competitive with other bids. Another problem I have is the 3/2/1 prepayment penalty. 

My thought was I could purchase the property, break even, and refinance in a couple years when rates hopefully come down. 

I am okay with the 5/30 amort, because worst case scenario, if I don't see rates drop, I can just sell or refinance. 

A little background...I own a personal home with about $1.3m in equity, and I have about $750k cash. 

Can anyone give me any advice in which ROUTE to take to get a commercial loan? I'm looking to lock in a good rate, with possibly no prepayment penalties, and low origination fees. Am I in lala land or is this possible?

Thank you in advance!

@Bob S. you make me nervous haha. Just messaged you!

@Eric Gerakos awesome, how do I get started?

@Yu Liu thank you so much for the detailed explanation. I know that took time. I will look into it

@Liam Robinson Thank you!

Hi all, 

I have about $1M saved and I am looking to get into buying rentals out of state. I live in Los Angeles. 

I don't mind doing the dirty work, I don't mind working hard. I just want numbers to make sense. 

I also prefer not using all cash on deals, so that I can scale faster. 

So, with current rates, I'm just doing some number crunching and it just doesn't make sense to me (see picture below)

Whether you buy SFH or multifamily, lets say you can get a purchase price of $80k, with $1200 rent. This is stretching it because most places don't even have this rent to price ratio. I was planning on renting to Section 8 which technically have above market rents. So this is best case scenario. With all expenses added, you're looking at $180/mo in profit. Just to cover my $5k in closing costs, it's going to take 2 YEARS.

This would be a similar case if i were to buy a i.e. 4 unit for $350k and $1100/rent per unit. 

So my question is, how are people getting wealthy? What am I missing? I've always wanted rental income, but it seems like the appreciation play makes more sense. Buy properties that don't cash flow, and sell a couple years later for profit. 

Because if you buy an $80k property that cash flows in i.e. Cleveland, OH, you're not banking on appreciation. 

ANY input would be appreciated. I do NOT want to come across as a know it all, because I don't know ANYTHING. I'm just trying to run the numbers. 

Thank you!

@Alfath Ahmed thank you. Yes, can you connect me to those people?