All Forum Posts by: Craig Marone

I have an area of interest that I would like to purchase properties in. I did the research and have found that a couple of owners own multiple houses there. Does anyone have any suggestions on what to write to them to express interest in buying their portfolio or to see if they would be interested in selling some of their investments?
Thanks!

Look for a community bank. I work for a community bank and we do cash out all the time. Obviously we would like to do a better LTV 70% or lower and we would need a reasonable explanation for why you need cash out (Atlantic City/Vegas is not a reason) =). Also if you are fully rented, you need to be able to show a debt service coverage ratio of about 1.30x. This is calculated by net rental income divided by debt service. Usually banks will throw in a 5% vacancy factor as well. Also this is for a COMMERCIAL loan. This means the rate will reset every five years and you can probably only get a 20 year amort. You may be lucky and get a 10 year fixed rate with a 25 year amort but you will be looking at 4.75% or higher.

Good luck