All Forum Posts by: Justin R.

 Out of curisosity, are you considering utility reimbursement portion as "Owner making money?"

That would be hard, but not impossible. First of all both positions would most likely want to be first position lien (which means if you got foreclosed upon who gets paid first.) 

Second issue is that it would be really difficult to cash flow, while paying both notes, especially with one lender in second position (which would most likely have a higher rate, plus points to offset their risk.)

Now if you got the property under contract for 75% of the market value, which means you would have built in equity, and willing to personally guarantee (full recourse) then yea it may work out.

If it's a good enough deal then you could even bring in an equity partner. 50 percent of a great deal is better than 100% of no deal.

Cheers! 

@Brian Burke Your more of an honest man, than a salesman.

It’s great that (IMO) the most trusted Syndicator/Operator on here is saying to diversify across other assets.

Brian you are in it for the long game and that is why people trust you.

I did a blanket loan in the past knowing I would have my hands cuffed as far as future collateral on those assets. You may think you wont touch those assets but what if you want/need to sell off one property out of the group? What if you just need to tap some equity, and now you are affecting the entire portfolios interest rate. Just some food for thought.

Typically from my experience, a lender that is willing to do a "blanket" style loan, lends from their own portfolio. This means they can keep it in house, and not sell off to the secondary market, giving themselves flexibility. They still like to see some sort of "grouping," whether it is in home style, neighborhood, SFD only, etc. 

I would connect with a few lenders on here, find one local mortgage broker, and then call around to several regional banks and credit unions. Remember that having a good relationship with a lender is more important than a small difference in interest rate (In my opinion.)

Cheers!

Lots of unknowns here but I will try and help out with what I'm taking from your question. 

The P/L is just that, it shows all profit, and loss (expenses.) A brief summary of revenue, costs, and expenses incurred within a specific period. This document can help assess the financial performance of an asset. 

If you obtained this from due diligence, then you must understand this form is generated from data. How long of a period is this P/L covering (typically a month, quarter, or year.) Does this data incorporate ALL annual expenses? 

IE; If you are looking at a P/L for last August, but annual property taxes are due November, you are not getting a good "monthly" snapshot.

If this is due diligence, you will also want to verify the data being placed into revenue and expense. Some examples are;

-County website for actual prop tax bills

-Tenant estoppels

-Actual utility bills

-Bank statements and tax records

-Verify insurance premiums with your carrier

Some say "Trust, but verify," I say "Trust that someone selling you something will only show you what you want to see.......So verify."

Cheers!

Welcome to the community! Im right next door in Marin county. Best of luck to you, feel free to reach out any time. 

Cheers!

On this site you will get investors that have Rockstar realties 5 states away, and realtors themselves.

Do yourself a favor and get your boots on the ground, meet some locals, and get references. A realtor that you are wanting needs to be new and fresh enough to the have energy and willpower to work their a#$ off, but also have some experience and education to bring to the party. 

On the other side of the spectrum, communicate your intent, and most importantly you must respect their time.

Cheers!

Great question, and even better position to be in!

I was in a similar position a few years ago. I decided I was going to trade in (sell off) many of my SFDs and reinvest into MFDs. My position was based upon my previous experience, and the time needed to manage those single assets. The amount of rooms, heating systems, separate property tax bills, insurance premiums, etc, etc. 

I understand you are not necessarily wanting to sell, but perhaps tap into the equity (refinance, portfolio loan, partnership) and parlay the equity into fewer, larger properties. 

Take a peak into portfolio or blanket loans. Some regional banks and credit unions will do them. They will group all of your properties into one asset, and give you one large loan. Much more simple (one monthly mortgage payment, and one 1098 each year!) The drawback is the challenge of selling a single property out of that grouping.

Last note, I don't like fully paid off properties. If you ever get sued, and a contingency based attorney looks at your property, and doesn't see a note attached, that is a low hanging, ripe fruit. Even a real small note offers some level of liability diversion in my opinion.

Cheers!

I can let you know with 100% certainty, whether this is a good time to buy, in two years.