All Forum Posts by: Mark Gee

Interesting thread, thanks for all of the color @David Sillaman

My question is about using leverage for these QOZ deals.  For example, I've read on another BP thread that if you buy a $100k property and use only $20k as a down-payment, and $80k in debt from either a private lender or bank, that you would then be required to invest only $20k to improve the property (not a full $100k as others have suggested).

Those are just basic number to get the gist across.  Is this type of leverage possible when doing QOZ deals within your own fund?

It certainly would make things easier.

Hi @Daniel Velez, it all depends on whether you will be doing a commercial or conventional loan.  Let me know what the details are via DM and I can give you some good recommendations.  None of the bankers are perfect because they required to leave 25% equity in the property.  

I've heard stories of some loan programs only requiring 10% down for investors.... Still looking for that but I have deals to do in the meantime.  Cheers!

Thanks @Jessica Zolotorofe  You are always a great resource on BP.

I feel better about moving forward knowing that those bank charges aren't exorbitant.

My attorney has agreed to charge me $1150 per loan because we do a lot of business with them and have been with them awhile.  I actually had attorney with better rates last year, but his service was atrocious and hurting my business.  

The commitment letter is signed and I should close of my new cash by September.  Onward!!

I'm in the process of refinancing 2 rental properties with 100% equity.  The deal is structured as 2 loans, one for $210,000 and one for $185,000.  The loan carries a 25 year amortization with a 10 year term that adjusts at year 5.  The rate is 4.875%.

Fees for each loan:

$1000 commitment fee 

$525 appraisal

$2750 bank attorney review

Standard NJ Title fees

Everything above seems fair to me, except the $5500 in bank attorney fees. This is for their attorney, not my own which will be another $1200 or so.

Is it customary for the investor to pay the "bank attorney review fees" when refinancing out your equity on rental properties?  (when using a commercial loan) @Brandon Turner

I've just now listed this Oceanport NJ (Monmouth County) investment property on the MLS. https://www.realtor.com/realestateandhomes-detail/...

Its a great unit.   Existing tenant pays $1750 and can stay or go. Month to month lease.  The floors in the Kitchen, LV and hallways were recently upgraded to CoreTec Plus Vinyl Plank to enhance durability and give it a more updated look:

I agree an attorney is the way to go.

But if you insist on DIY, here's this excellent article from @Brandon Turner

https://www.biggerpockets.com/renewsblog/2015/05/2...

Best of luck!

@Sandra B. 2012, great time to buy in Hoboken!  I'm sure there's a lot of equity in that unit, esp with a 15 year.

I manage/own 4 condo's in town and you are correct, the market is softening due to a huge increase in supply & competition from nearby towns.   Jersey City has become very trendy & hip (hipsters running amok) and perhaps steered many into their coffers.  I've recently had a few youngsters tell me they prefer the 'rawness' of JC to the 'yuppieness' of Hoboken.  They're both great imho.

Hoboken will be fine in the long run, but your intuition about a soft patch is most likely true.  I'll be there tomorrow if you have any specific questions, lemme know. 

@Olga Shkolnikova  Hi Olga, I'd be interested in hearing more about your property.  I own and manage apartments in Hoboken.  Feel free to send me a direct message or email.  Thanks!

thanks @Mike McCarthy !!

Lawes is going to be my first call tomorrow. They definitely get most of the business around here. 

Because this is an auction property, I have no access to the inside.  

The permit department only has a record for 3 permits, all done in the last couple years: electric, new roof, radon system. They have nothing prior to 2011. 

 Does it mean anything that they were able to refinance with Wells Fargo in 2009?

What did you end up doing @Ryan W.

I'm in a similar situation in Red Bank (oil tank risk) where I'm bidding on a SFH with no records on OPRA or NJDEP. I really want the house, but obviously not if there's an underground tank!

However, there was a refinance done in 2009 by Wells Fargo Bank.  I know this doesn't eliminate the risk entirely...., but my understanding is that by 2009, most big 'money center banks' were requiring an oil tank sweep??  

Any help would greatly be appreciated!  @Darren Sager @Jeffrey Carusotto