All Forum Posts by: Jay Hunt

Candidly, some of these responses are gross.  Not saying the people who wrote them are, but some of this rhetoric about people needing section 8 housing automatically being idiots or by default stupid for needing to be on the program are some really trash hot takes.

I've had two section 8 tenants in the last 15 years.  One was great and the other one was just there but neither of them tore up my place.

The administration of it, though, juuuust sucked.  I also didn't particularly like the feeling of what felt like the mighty hand of government suddenly having a complete and utter right to enter my property without my knowledge as they administered the program. 

in California as of 2020 it's not legal to turn anyone down because of section 8 usage but you still can have tenant requirements like good credit or minimum credit score that you follow for everyone that the section 8 tenant likely won't meet.

I waived those for the section 8 tenants that I mentioned above and thankfully it worked out but when I had done so for other tenants not on assistance it has bitten me on the butt.

Long story short: if you screen section 8 tenants like you screen your other tenants (with a little wiggle room for their financial situation), interview them/their current landlord (if you can), and you don't mind more government intrusion into your business (property), then try it as a one-off to see if you're okay with the level of administration required.  

Wow!  Way to go!  I actually stumbled onto your post looking for "help with investing with commercial real estate for the first time..." (no quotes) - curious about a couple of things:

1) the MIH Mastermind group you mentioned - is it a paid membership club/group, or...?  And do they help with search or advice with securing financing or...?

2) you mentioned it was a marathon - about how long was it from "I found this commercial property" to closing...? (roughly)?

Thanks and congrats again on this major milestone!  

Hi,

Infrequent poster, but when I've needed wisdom, this has been my "stop."

So, the situation:  took out a second mortgage about 2-3 years ago to start a business that didn't go super-well (long story, not real estate related).  Before and during that time, have owned 2 multifamily properties, one of which has also been my primary residence.

Chugging along, that abovementioned biz went under, but since then have been working a self-owned consulting business and teaching part time.  Between that income and the mortgage income, been doing OK.

Yet, of course:  the balloon payment is coming up.  I need to refi, but have a few things working against me:

-wild swings in income due to self-employment, except for the PT teaching which is steady, but peanuts RE $$

-paper losses in taxes because of self employment - couldn't afford to show that I was making $$ like gangbusters while also getting back on feet

-credit score is just fair

Working for me? Ton of equity: both properties have comparatively low balances on the existing fixed rate mortgages, and the loan that I'm looking for would be an LTV of 50% (it's about 30% right now), which would pay off the second + all cc debt in one go.

Question:

-any ideas?  I have to think a conventional lender is going to look at the wild fluctuations in bank statement and run for the hills

-any experience with low/no-doc mortgages?  Have read "THEY'RE BACK!" but then when I dig deeper to find an actual lender, it's tumbleweeds and crickets

I COULD sell if it comes to that, it's just so pointless to do so - I've had my current (first) mortgages for 8 and 12  years respectively and never had a late payment.

Open to suggestions!

Aaahhh, got it ok thanks!

Hi!

So I have a 4-plex in LA that I've owned for about 10 years, and it has a nice bit of equity (about 42-49% worth, depending on the valuation/appraisal; I--of course--think it's the latter, lol). I'd like to get a second mortgage on said 4-plex so that 1st and 2nd add up to 75-80% LTV, but there seems to be a ceiling of around 65%, 70% tops. The plan would be to use the income to put $$ down on a new 4plex in a neighborhood that's likely to appreciate in value because of heavy development there.

Question is: anyone heard of anyone doing a 75-80% LTV on a second mortgage for an investment property? I'd rather avoid a cash out refi since my current fixed rate is great and I'm unlikely to be able to re-refi in the future for anything close in 2-3 years. The cash flow from the rents look to be able to cover both mortgage payments w/the first having an escrow account, even.

Open to suggestions, thanks!

@DJBenedict - OK, thanks!  I'll give it a go!

Back on the site after a long, multi-year hiatus (spent doing consulting work vs RE investing; now I'm back at it).  I was on Bigger Pockets years and years ago, and got into trouble (post deleted) for asking if anyone knew any lenders that did "such and such" type loan," with the particulars of what I was looking for.  No biggie, post was deleted at the time, no drama.

Question is, now that I'm back here, I have a similar question (i.e. "does anyone know a lender that does xx type of deal"), but am not sure where to ask it to NOT get in trouble.  I DID read the Bigger Pockets posting rules, twice, but can't seem to find the guidelines prohibiting that type of question.   The closest seem to be "Off Limits Ads" or "Advertising or Promoting"...  

Questions is:  is that type of post allowed now, or still verboten?  Or is it "only in the Marketplace?"  

Thanks!

Jay

OK, good to know, Don, thanks for the response!

Thanks, Michael - appreciate it!

Hi - had a brutal process trying to refinance an investment property with a lot of equity.  Found a great guy, Peyman Broukhim, who--for the first time in this process--did what he said he was going to do, when he said he would do it.  He's a direct lender (which seems to help a TON), and was able to do something I HADN'T (shockingly) considered:  a second mortgage.  Went through like a breeze.  Wish I'd found him first!

Sidebar:  so that it doesn't appear like I'm being pimped out, I'm not a shill for him, he just was super professional and FAST.  I think at one point, he exclaimed "this is a slam dunk:  whoever you started with didn't know what they were doing!" LOL.  I'm guessing I can't link to him in the post, but if anyone wants his contact info, feel free to PM me. 

While I ended up going with him, a contact I made here:  Narmina Gasanbek, I would strongly recommend as well.  If the deal with Peyman hadn't gone through, she'd be a shoe-in for the refi - Super pro as well!

So, all of that exposition aside, I am a "second mortgage" convert and want to do a 75% LTV one on my owner-occupied property. I'd take the proceeds and put a down payment on another 2/3/4-plex.

FINALLY to my question:  do lenders (hard money or not) factor in ANTICIPATED rent in a multifamily property evaluation?  More texture to that question:  I own a 4plex and live in one of the units.  With the second mortgage, I'd spend part of the proceeds to move out and fix that unit up to rent it out.  But of course, the lender would have to estimate what my (larger than the others) unit would go for.  

1) Are lenders able to do that?

2) Is there a formula that's used (rent $/sq ft, comp units in area, other...?)

Thanks!