All Forum Posts by: Joseph Agins

BOI E-FILING (fincen.gov)

 Sounds like I will need to do this as well.

Ha! Good stuff Ron and thanks for your sage input! I actually just heard back from the lender and he confirmed, in writing (email), that a PPP would only apply for an early payoff and not for increased and/or extra loan payments.

Ahhhhh... Thanks Kristi! So, they calculate and charge the penalty at each payment - if you are paying extra. Now I get it and agreed on the renter paying anyway!

On a side note - did you do this particular DSCR recently?

 Thank you and great info Stuart! I was totally guessing/assuming on the 10-20% but will confirm with the lender tomorrow.

Thanks John! I'll see what the lender says tomorrow but I have to assume it's something like 20% as you mention. I'm going to proceed regardless as not planning on paying off that early nor paying down that substantially in the 1st 5 years. However, the language regarding "any partial reduction payments" did surprise me and pique my interest. Thanks again!

Loan Commitment states:

 "There is a prepayment penalty of 1% on the loan for any partial or full principal reduction payments made before the end of the fifth year. After the fifth year the loan can be paid off with no prepayment penalty."

So, would the PPP trigger for simply paying a little extra on monthly payments?  I need to confirm with the lender but assume any such "partial" payments would have to be substantial and equal to at least 10-20% or more of the total loan?

@James B. - Thanks for your encouraging post. Good stuff and well done! Are you maxing out the cash you can take out for each or only what you put down to buy each one?

I have 2 that I purchased within the last 4 yrs. I think I will start with these as they are no brainers due to the interest rates alone and will see if I can do cash-outs on them as well.

@Joe S. - If I were to do any sort of cash out, my goal would always be to buy more property. However, whenever one is sitting on a pile of available cash, it can, unfortunately, be easy to tap into for other reasons.

@Marcos Gonzalez - Thanks. I really didn’t know 25 was even an option as the lender only quoted me for 30, 20 and 15.