All Forum Posts by: James Syed

I agree.

@Dean Suzuki I just sent you PM as well.

Here is my second response.

Yes, it means at the end of 5 years, your note will be due and if you want to refinance with them, they will offer you the current interest rate for the subject property at that time.

Your loan is amortized over 20 years meaning you will be making payments as you will be paying this loan for 20 years, but in realty your loan will be due at the end of 5 years.

There is no automatic rate adjustment. I assert you are confusing this with ARM. It's NOT an ARM loan where rate adjust itself after sometime. In this type of loan (balloon), your note is due and you have a choice either pay off the mortgage or refinance.

Does it help Dean?

James Syed

@Brandon Turner Sure I have made mistakes during my almost 2 years of real estate investing.

For instance, One time I had called up a plumber to pump out water from crawl space of a HUD home that I had recently purchased. I asked him how much, he said $25. I said go ahead. He came in started pumping water out. After an hour he said it will take longer than one hour and needed to go ahead so I did.

He had a mentioned two small leaks as well (they were a small job) so I said OK. After two days I got an invoice from him for $750 (no, it's NOT a typo). Long story short we settled on $550.00.

Take away lesson is always get an estimate before giving a go ahead for any jobs. I understand for some jobs, it's difficult, however it's a good a idea to a cap in that case.

Hope someone benefits from hit.

Brandon, you are best, man. I was so inspired by you through youtube that I joined BP like 3 months ago. I especially love your multifamily valuation skills and new ways of exploring how to purchase them. Your 2% rule, 50% rule, $100 minimum per unit per month, etc makes real estate investing so easy.

I know these are just guidelines and a detailed due diligence is necessary, but I think these rules save a lot of time. Keep it up, bud.

James Syed

@Dean Suzuki your loan terms, rate seem to be norm. I have portfolio lender offering me 5.25% fixed for 5 years (balloon mortgage) amortized over 20 years with 75% LTV.

You will not find rate fixed for 30 years.

Hope it helps.

I could you give you more lenders, if you need to.

James

@Matt R. You don't have to use cash. You have choices. Go to a portfolio lender, credit union. They will finance you.

Here is lender from me. Try aimloan.com. They will assist you. Small loan amount doesn't matter.

Hope it helps.

@Brendan O. I see.

In that case, fourplex is better deal because of cash flow. I know you mentioned renting rooms for SFR, but it's management intensive.

In addition, I assert you will get more rent for a fourplex than rents from 5 rooms. Am I right?

You might be able to make more money on SFR when you sell the SFR because of high SFR appreciation in San Francisco.

Does it help?

@Lincoln Lewis Everyone seem to be on the same page. Great work BP.

Yes, anything over 5 units is commercial so no FHA.

@Jeremy Roberts Welcome to BP.

I am also a licensed real estate broker in Illinois. I'm interested in investing in Texas. Will send you a pm shortly.

James

@Jason Stephan You don't want a negative cash flow. Kindly don't fall for appreciation stuff as it is very risky and that is NOT 2006.

Hope it helps.