All Forum Posts by: Marwan Marzagao

thanks.  I have finally found someone who is responsive.  It seems that when listed as commerical the rate is much higher, he is working on ways to reduce the premiums.  Thank you

Account closed and chris, thanks for the post. I actually just posted a similar situation to the original post.  Are there any companies that are more investment friendly? The quotes I am getting are much higher than the policies the sellers currently have, and I called their companies. I am planning major exterior and interior renovations on one so hopefully that will help.  

I am currently looking to insure two properties, a triplex and a six plex.  I am not having much success locally to find carriers that will insure them.  I am being asked if the units have students in them, which seems to affect the rate and then getting a replacement cost and a coverage quote that are very different, lastly I have some agents that I spoke with that never call back? In previous years I did not have these challenges. Has something changed with insuring rental properties?  Any insight is appreciated.   

Great dicsussion.  I am in a similar situation with looking to pay off a property or keep the cash.  Steve made a great comment about the feeling of not having a note on your investments, it really puts you at ease dealing with bad tenants and vancancies.  Maybe you "lose" on your tax returns bu,t you would keep the 3-6% you are paying in interest in your pocket.  With this said, I did leverage a property to buy two properties.  The numbers all made sense but the feeling that I now have two mortages has not sat well.  It has made me realize that I am more comfortable with paying off than levergaing.  I know it will slow down my frequency of buying properties but it give me a better return.    From my conversations with banks, if the properties cashflow and you have a good relationship with the bank, you can get loans pushed through.  I also think not having mortages is helpful and reduces their "risk" in you.    Thanks for posting!

I guess I have an "old School" mentality from my parents not to have a mortgage, but it makes sense to keep more cash on reserve and leverage the property with an aggressive payback strategy.  I will keep searching for lenders that can do this deal, unfortunately my bank can only make so many concessions and did push the deal to a 30 AM from 15 but still with a Balloon at 5.  I agree, the relationship component is huge, that is why I always go to them first.    Thank you!

Thank you.  I had not thought about it that way.  I can do the first deal cash but that would limit my down payment for the second deal, this is why I was wondering about a bundle deal.  But it makes more sense to break them out and have each stand alone. I am currently looking for lenders that can do a large deal like without a five year maturity, like most have presented.  Thanks again for the insight!

Great points.  Thank you

Pros and Cons to actual property vs REIT's. I have a friend who is heavily invested in REIT's and has had success. I have always leaned more towards owning an actual property because of the equity you build and cash flow opportunities. I would love to hear from the group on the benefits of one versus the other. I am looking to purchase several multi family units and wonder if I should diversify?

I am looking to buy  a six unit and sixteen unit complex.   I am under contract for the six unit, and the sixteen unit just popped up on my radar this week.  Has anyone ever been in a situation like this.  Were you able to both properties under one loan, if so how did you delay one deal to bring the other one online.  Are lenders able to do this?