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All Forum Posts by: Joseph Shapiro

Joseph Shapiro has started 6 posts and replied 12 times.

Post: 5 Year Fixed or 10 Year Fixed?

Joseph ShapiroPosted
  • New York, NY
  • Posts 12
  • Votes 1

Good question.  The loan is not assumable.

Post: 5 Year Fixed or 10 Year Fixed?

Joseph ShapiroPosted
  • New York, NY
  • Posts 12
  • Votes 1

Hey team!

My building loan is coming up for a refinance.  I have the chance to do so at either a 5 or 10 year fixed over a 30 year amortization.  Five year for 4.75% and 10 year at 5.25%.  My current intent is to hold it for the long term.  

Would you refi at the 5 or 10 year rate?  Curious why.

Thank you in advance

I appreciate everyone's feedback.  It's a solid C building in a working class community close to parks, shopping and such.  The market price has doubled, leading to the potential $1M gross profit ($700K after taxes).

Tenants are custodians, police officer, prison officer, cable service repair etc.  I bring this up because their income is capped relative to white collar employees, so despite the current capacity to push rents - there's only so much you can "squeeze" out of them to increase cashflow.

The projected $4,000/month in cashflow 2 - 3 years from now accounts for increased rent (2022 rates) and an adjustment to my mortgage rate (I have a 10 year loan comprised of two 5 year loan periods.  After the first 5 years - coming this November - it will adjust to 265 bps above the weekly average yield of US Treasuries adjusted to a constant maturity of 5 years).

With $4,000/month in cash flow and $600,000 in investment that equates to an 8% annual return 2 - 3 years from now (assuming rents don't drop).  One thing that I think will surely drop across multifamily are sales price.  So on one hand will I could increase cashflow, the other hand value of the property will decrease.

I can take the $700K profit, hand it to a syndicator, get a 7% pref or the same $4,000/month in cashflow as an owner/operator.  At the same time, retaining my $600,000 in initial investment.  I can use this to likewise rollover at a 7% pref or use it to upgrade my house etc..

@Jim Pellerin. Think you meant to ask me; 18.

Hey gang!

I have an apartment building in the northeast.  Bought it 5 years ago.  

Currently, cashflow is **** - $1,500/month but if I increase rents to the current market (probably a 2 - 3 year process) I can likely cashflow $4,000/month.  This accounts for a tax reassessment and refinancing the current mortgage balance (loan is comprised of two 5 year terms).
I have $600,000 in the building (between downpayment, capex, closing costs etc).

I have the opportunity to sell it right now and gross $1M or after taxes $700K (if I can't 1031).

Question: Would you sell or keep this property?

I should add this is in the Philly area.

Hey Team,

What is a fair commission rate to may a broker to sell a $3m property?

Thanks!

Post: 1031 2 properties at same time

Joseph ShapiroPosted
  • New York, NY
  • Posts 12
  • Votes 1

Hiya team!

I have 2 properties that are about to be sold. One is in the name of a LLC, the other in my personal name.


Can I 1031 both into a new property that I would like to buy?


Thank you.

Post: Invest with Prosperity Capital Partners

Joseph ShapiroPosted
  • New York, NY
  • Posts 12
  • Votes 1

Hey guys,

Curious if anyone has invested with Randy and Sara Jo Lawrence of Prosperity Capital Partners?  If so, what's been your experience with them?

Thanks

Post: Should I SELL or KEEP this building?

Joseph ShapiroPosted
  • New York, NY
  • Posts 12
  • Votes 1

@Account Closed the $600K went towards the downpayment, roof repairs and other capex projects.