All Forum Posts by: Beth Johnson

@Luke Carl

A lot of commercial banks were overloaded with SBA loans in April-May and many halted mortgages early on in covid creating a backlog. Depending on what market you're in, I would find it very difficult to perform/fund in 3 weeks when an appraisal schedule, visit and report would take that long, if not longer. In my state of Washington, I got commercial underwriting approval (on a 5-plex) the first week in March, an appraisal ordered two weeks later in mid March scheduled for 2nd week in April and the final report to lender two weeks later.

@Joe Young

I'm a private money lender in WA and we do 2nds all the time but we don't lend outside our state. I would recommend trying to find a local private money lender - perhaps one that uses their self directed IRA (SD IRA) to lend out - that will work with you in 2nd position for a higher interest rate. They do exist and many will do gap funding (combined LTV up to 100%) but you have to seek them out. Another option depending on how much funding you need and if you have one or can create one, would be to lend to yourself out of your own SD IRA. There are rules and regulations to doing this but many investors use this option often. You can borrow 50% of the value or up to 50k from your SD IRA, from what I understand. Don't quote me on that figure though, I'm not one who does this since I lend my SD IRA funds to other investors and not myself.

@Scott Mac

That would assume a level of empathy and objectivity which doesn't exist on the council. They lump small mom and pop landlords with huge national apartment outfits like Greystar. No differentiation at all. Late last year the Seattle council voted to require notification of any duplex or larger MF intention to sell. In this regulation, the owner must provide provide what essentially amounts to a first right of refusal to tenants, tenants union, Office of Housing etc for minimum 15 days. If one expresses interest in purchasing, they'll have an additional amount of time to furnish a pre-approval for financing. All in, the total time required for pre notice is like 45-90 days. It's crazy!

https://www.seattle.gov/housing/intent-to-sell

@Justin Juhan

Yes there is, it can't be more than one month's rent including any move-in fees. In addition, if requested, you are required to split out security and last month's over 6 month installments. So they can move in in November and pay only 1/6 of security and then stop paying and destroy your property without recourse until March. On top of that, that have a First in Time rule which requires you to accept first qualified applicant without subjectivity and you are banned from found criminal background checks. It's getting fun in Seattle!

@Andrew Tabalbag

Attorney's Title in Tacoma

@Kirill Chervets. Try Coastal Community Bank. I hear they do lines of credit on investment properties which may be a better option , if you won’t be using all your funds immediately and for an extended period of time.