All Forum Posts by: Jaden Ghylin

I'm going after an REO mobile home park in Rochester, MN that has 215 pads, with 57% occupancy. It needs about 65 homes brought in and sold. It will be capital intensive for about 24 months. The bank currently wants around $1.1 mln for it, but it is being auctioned on May 16, so could go higher. I've done a lot of due diligence on this and the park value at 90% occupancy is $4.5-5mln refinanceable into non-recourse debt in the 4.5% range with 30 year amortization.

The Rochester market is growing rapidly due to a $5 billion investment into a Mayo Destination Medical Center, which is driving rents higher.  Unemployment is 3.2%

I'm looking for partners for this 36 month project.  At the end of the 36 month term, we will refinance the equity back out using a non-recourse 30 year loan.  I can purchase the park, but the "rehab' is above what I can fund personally.  Contact me if you are interested in being involved in this.

Regards,

-Jaden Ghylin

Jerry, I have 9 mortgaged properties. Can you explain?  Would this be with Fannie Mae financing?

I'm hoping someone can point me in the right direction here. I'm looking to refinance a portfolio of single family houses and townhouses (9) valued around $1.3 mln in the Minneapolis suburbs. I'd like to get the loan up to 75-80% LTV if possible with a 25-30 year term at 4-5% interest rate. Rate lock would be 5 or 10 years preferably. Does this seem doable? Does anyone know of a mortgage broker or company that could help me find a loan like this? I've seen these kinds of loans for mobile home parks and apartments, so they must exist for single family.

I'd appreciate any help on this.

Thanks!

Jaden

I'm hoping someone can point me in the right direction here. I'm looking to refinance a portfolio of single family houses and townhouses (9) valued around $1.3 mln in the Minneapolis suburbs. I'd like to get the loan up to 75-80% LTV if possible with a 25-30 year term at 4-5% interest rate. Rate lock would be 5 or 10 years preferably. Does this seem doable? Does anyone know of a mortgage broker or company that could help me find a loan like this? I've seen these kinds of loans for mobile home parks and apartments, so they must exist for single family.

I'd appreciate any help on this.  

Thanks!

Jaden

Howard and Tom, thanks for the encouragement and ideas.  It is helpful to have some confidence in the plan going forward.  

Jeff, thanks for your idea on being a passive investor in a syndication deal.  That does seem like a very good idea to help build credibility.  I don't have much of an idea where to look for deals where I could get a little more actively involved rather than being a pure passive investor.  I'll PM you.

-Jaden

Hello all, I am at a bit of a crossroads and could really use some guidance from others who have crossed over from residential to commercial properties.  I have built a solid portfolio of 9 single family rentals in the Minneapolis/St. Paul metro that have been cash flowing and appreciating well.  The market has gone up enough to where I don't think it's wise to purchase any more at current prices.  Additionally, it's time for me to scale up into larger properties rather than building the portfolio one at a time.  I have a few questions.  

With commercial properties it appears that it's better to be into higher value properties, generally over $2 million.  The financing is better and there are more revenues to pay for overhead, and management.  I have met a few commercial investors and I seem to hear this over and over again.  The properties under $1mln are undesirable unless they can be improved beyond $1mln.  So far, I have been financing all of my deals with local banks and my own personal funds.  Doing this, I could stretch myself into a $1mln property, but I'd be out of powder at that point and definitely can't get to $2mln.  I've also noticed that in commercial investing, it is very common for developers to not use any of their own funds.  They raise the down payment and finance the rest with bank financing.  This is completely new territory for me, but seems like the path I need to go down next.  It seems that crowdfunding websites can help with the regulatory and logistical aspects of raising capital.  Does it make sense for me to pursue a down payment capital raise through crowdfunding?  Most of the deals I see on these websites are from proven developers with a track record.  I have a track record in Single-family residential, but not commercial, so I'm not sure how that will apply.  If my track record is not sufficient to raise capital yet, can you give some pointers on what I can do to improve the track record to instill confidence in investors?  I can certainly take on a portion of the down payment myself, which may help.  Any other thoughts?  How have you all had success coming up with down payments on $2mln+ properties?  

I'd appreciate any insights or input you have to offer.  Thanks in advance.

Regards,
-Jaden

Does anyone have any experience in selling a portfolio of single family rentals?  I currently have 9 in the Minneapolis/St. Paul metro with total value over 1mln.  I have looked into doing a portfolio loan to provide financing that would be transferable to a new buyer, so it can be purchased easily as a package.  I'm not sure this makes sense as the portfolio loans (B2R, etc.) appear to have rates in the 6-7% range.  

I'd like to find a way to liquidate these properties, but don't want to deal with the hassle of selling individually.  Any thoughts would be appreciated.

Thanks,

-Jaden

Hey Glenn,

I lived in Cedar Rapids until 2010. Any chance you work at Rockwell? I have a friend down there that owns Realty Solutions. I asked him how the market is, sounds like there may still be some opportunities on the low end, but not like it was a couple of years ago.

I agree with you on paying down debts and sitting on some cash. That's basically what I've been doing. Just looking for another opportunity to invest if one exists.

Steven, how much will the 2/1 rent for? I'm looking for something close to the 2% ratio. I am comfortable being into a place for $60-70k that rents for $1100-1300/mo.

Regards,

Jaden

I've got some funds freed up from cash-out refis on 9 rentals that I purchased between 2011 and 2013 and some flips, but I'm not sure where to invest it.

I had been buying rentals and flips in the Minneapolis area where I live, but the market has moved up so much on the low end that it seems impossible to find a deal that makes sense. What's worse is the the retail prices have come down a bit due to higher interest rates making flips more difficult. Flippers are now operating in the $600-900k resale range, which I am not too comfortable with.

Properties that were selling for $50k, 2 years ago are now $100k, and the 2% rule is not even close to working. I'd like to invest in some more buy and hold properties, but not sure where to go from here. Anyone else running into this problem? Do I need to start looking in other states? I am considering looking at smaller cities in MN, like Rochester, Duluth, St. Cloud, or Fargo/Moorhead. I just don't like how low the rents are in those areas. I've also looked into multi-family as well, but not seeing any good deals there either.

I am in my low 30s and still in a wealth building phase, so I am looking for investments that I can pull most of the down payment back out of within a short period of time, creating high cash-on-cash return.

Any ideas would be appreciated.

Regards,

-Jaden

Two options I can think of that some people used last time around.

1) Sell your house and rent. This can be expensive to move and difficult if you have a family, but I know families in CA that did this. Some even moved out of state to find lower cost housing.

2) Get a Home Equity Line of Credit and use it to invest in higher return projects. Be sure you don't get caught in the bubble hype when it turns. This is probably the easiest thing you can do, but it will be more difficult to find high return investments. Consider looking out of state if needed.

I hope that helps!

-Jaden