All Forum Posts by: Jerry Hollifield

Thank you for the info Andy

What are the best institutional note funds for accredited investors? Please share any experiences you have had.

What are the best institutional note funds for accredited investors?  Please share any experiences you have had.

@Jay Chang Joe Fairless and Adam Adams are two of my favorite

@Nathan Hui. In my experience, when I have increased income on a property classified as residential, the lender's value of the property has not been driven by NOI. They may use the income to assist on debt to income ratios though. Maybe one of the residential lenders on BP can weigh in. And perhaps as a residential lender, they may have parameters that allow them to increase LTV based on NOI.

@Nathan Hui. Are you asking why lenders treat 1-4 units as residential and 5+ units as commercial?

@Ryan Proffit. You can check county records using PIN

@Ryan Proffit. If I understand correctly, you would be referring to 8 units total. In that case, yes that would be considered commercial. You may get a lender to treat as 2 separate properties, if deeded that way, and still stay within residential guidelines.

@Nathan Hui any residential rental property with 4 or fewer units is considered “residential” and qualifies for a residential mortgage. Any residential rental property of 5 units or more is considered “commercial”, thus you must obtain a commercial mortgage.

@Nathan Hui In my experience, anything classified as commercial, value is determined by NOI. Typically that is 5+ units. With the 4-plex, the ARV should be similar to SFR.