All Forum Posts by: John Blanton

I am looking at investing in either a turnkey rental or promissory note as an out of state investor (NC) in Illinois. The LLC/Corp is based in Illinois that I will be investing with/in.

I want to make sure I fully understand the tax consequences before making this investment. Will I have to pay state income tax in both Illinois and North Carolina? Or just in NC as that is where I reside?

Will I have to file both an NC and Illinois state income tax return?

Appreciate the help!

For most markets hearing 75% LTV and 1.3 DSCR, top tier markets are still getting 80% LTV and 1.25 DSCR for agency debt

Depending on size and location seeing 80% LTV from some local banks, but that will depend on the particular project and potential risk

Thanks @Ryan Landis thanks for the feedback and will count my blessings!

Yeah was able to lock in the 2.8% CD last year when interest rates were increasing.

Looking to save money for my children for expenses throughout their life (first car, braces, sports/ class trips, etc).

Currently saving the majority of the money in a CD (2.8% interest) so the exposure to inflation is a little hedged at least.

I know this isn't the most aggressive option, but does anyone have any other ideas how to save money that can be accessed within short order as needed for expenses throughout their life? Only current risk is sacrificing previous 90 days of interest accrued, but can be cashed in at any time.

Time horizon is 7-10 yrs+

Welcome to the area and great selection @Jon Allen Jr!! 

I always think it is good to work with a realtor that is also a fellow investor. Check out @Tiffany Alexy she has a portfolio herself in the Triangle and thoughout NC.

Best of luck!

Thanks @Brian Burke for your points. Like you said nothing wrong with the sponsor looking to 'juice' returns as that is all of our goals, just wanting to make sure the assumptions I am making to get there are realistic. I really like your idea of judging the returns without the refi and seeing if they still meet my goals, the refi would be the cherry on top. 

Thanks @Kevin Owens for the detailed response, very useful and informative!!

Thanks @Michael Le appreciate the context! The loan term is longer than 5 years, but they feel they will increase NOI such that they will be able to return most investor equity in 5 years with a refi. I was mostly curious about historical I/O term lengths were to help forecast what the future 'may' hold.

Currently looking at an investment as an LP and the sponsor is assuming a refi at the end of year 5 with a I/O term of 36 months.

To me this feels like they are doing that to juice the returns in the pro forma and errs on the side of being too aggressive. But I also am not an expert in I/O lengths lenders have given in recent history (last 10-15 years)

Do you feel the 36 months of I/O in five years is realistic or aggressive?

Knowing that is a loaded question, can anyone share insight as to what the historical I/O term lengths for agency and conduit lenders?

@Andy Brohard What size loan balance are you going to need? Have a couple recommendations can DM you, but would differ if balance over/under 1MM. Good luck!