All Forum Posts by: Manuel Angeles

Small Balance Loan Advantages

• Small Balance Loans are designed specifically for smaller multifamily properties.
• Interest rates are set by Freddie Mac and are highly competitive.
• The debt is secured by the property, so personal guarantees are not required.
• You can typically borrow up to 80 percent of the property’s value.
• If you choose, you can make interest-only payments for part or all of the loan term.

From CBRE:
http://www.cbre.us/real-estate-services/real-estate-industries/multifamily/freddie-mac-small-balance-loan

What do you think about this Post

 https://nypost.com/2018/09/22/next-crash-will-be-w...

How are you securing your family's financial stability and safe-keeping ?

Current national debt is $21,508,182,7000,000.00

National Debt Clock:.
http://www.usdebtclock.org/

This NY Post talks about the Bailout of the Central Banks...

Who is going to bail out the central banks ?

Do you also follow Peter Schiff, Jim Rickards, Harry Dent, etc ?

Great posts !

We use hard money / private money to fund 1st TD at up to 90% Purchase + 100% Rehab Costs... 

Then we fill the 10% gap with a 2nd TD held within a Land Trust. Then we well partial beneficial interest of that land trust to smaller private money investors.

And here is a sample of an "Assignment of Beneficial Interest" in a Land Trust:

http://www.ctlandtrust.com/files/AssignmentoftheBe...

Here is a good resource on Land Trust by Jack Shea, where he also talks about Assignment of Beneficial Interest

http://www.jackshearealestate.com/wp-content/uploa...

You can find lenders on Scotsman Guide and Private Lender Link:

https://www.scotsmanguide.com/Residential/LenderSe...

https://privatelenderlink.com/

Most lenders usually lend up to 75% LTV on 1st TD... some will go up to 80%, 85% even up to 90%.

For the remaining 10% to 25%, Lenders expect you to bring that yourself as your own equity / "skin in the game."

If you do not have 10-25% down, you can find private individuals / investors who would be willing to bring that on your behalf. They would secure their capital with a promissory note secured by a deed of trust on 2nd position subordinate to your 1st TD Lender.

When we fund subordinate debt, we structure a 2nd TD to secure the gap. Depending on how high leverage we go, we will also structure a 3rd TD Shared Appreciation Mortgage. 

Our 2nd TD is typically at 15 % interest.

The 3rd TD is net profit split after all expenses.

What we do, to recuperate our initial investment, is sell our 2nd TD note at 15%... while keeping the 3rd TD S.A.M.

A good way to start is to Bird-Dog for other successful investors in your area.

I can introduce you to some of our clients in Menifee area. They are also looking for inventory. Send me a message, I'll forward to you their contact info 

RETRAN is good
https://retran.net/

And Property Radar
www.propertyradar.com

www.REWW.com is good too, but more for vacant properties. Their pre-foreclosure list is limited.

If you're a realtor, you can use www.NARRPR.com

@Ben Leybovich

 This is awesome !

Congratulations !

#Goals !

What was acquisition price ?

What is projected disposition value ?

Was 100% of acquisition and improvement costs coming from raised capital?

Or did you have a lender provide lion's share of costs as debt, then raise the remaining capital as equity ?

Has Anyone Raised Capital using Land Trusts & Assignment of Beneficial Interest ?

Example:

Securing Debt on a property with a 1st TD mortgage, held by a Land Trust.

Then, Having Interest in the Land Trust sold to other investors, via Partial Assignment of Beneficial Interest in the Land Trust.

Jack Shea talks about it also:

http://www.jackshearealestate.com/wp-content/uploa...

Below are samples of an Assignment of Beneficial Interest in a Land Trust which held a 2nd TD on a Fix&Flip in Sherman Oaks...

If you want to find Lenders to provide capital to Investors for the purposes of acquiring, improving and reselling real estate (SFRs, MFRs, Commercial), visit these websites:

https://www.scotsmanguide.com/Residential/LenderSe...

https://privatelenderlink.com/

Both websites allow you to search for local lenders in your Cities / States.

Most of the lenders there will more than likely approve 80-85% Purchase + 100% Rehab Costs

Typical costs right now are ~10% Interest and ~2 points

1-year term, interest-only, no pre-payment penalty.