All Forum Posts by: Matthew Otero

So I just received a Notice of bankruptcy. One of my tenants has filed for Chapter 13 bankruptcy. I’ve forwarded the information to a lawyer but does anyone have experience with what may happen next?

@Gloria N Gear Thank you for sharing I will definitely reach out.

Hello community,

I’m looking for someone to help manage my properties in Indiana. My partner and I are still currently working and have not gotten to the point where we can walk away from our W2 incomes. I’ve reached out to a few companies out here but we are either too small to work with or they just flat out haven’t responded. We’d entertain anyone qualified. Organized handyman/handywoman or any other referral that could help would be welcome. The properties are in Johnson County. If you are interested or know of someone who might be please me for further information. Thank you all.

Evan thank you for your insight. The equity mentioned in my previous post was used to purchase more rentals. You hit it right on the head though as I'm barely breaking even on few of my units. My partner and I are novice investors with the goal of one day replacing our W2 income. The long term buy and hold strategy was the easiest door to walk through at the onset and we've been fortunate thus far, although working capital is getting tight and the current rental market is hard to read (for myself anyway). I'd like to stay with rentals and keep growing as neither of us has the supposed time or team necessary for a flip although the profits would be nice. We've entertained the idea of partnering with an investor experienced with flips but mostly just with ourselves. I'm skeptical and worry about getting burned with the limited funds we have dealing with something we dont know much about. Syndicates sound interesting but not very profitable I'm going to have to read up on them. What would you do with 30k right now?

We were able to tap into the equity of a few of our rental properties. The idea is to just keep buying but we're thinking if we should start rehabs and flips. Small LLC with under 10 units just looking to maximize the funds. Just want some thoughts.

@Ryan Hehman Our goal is to have cash available for our next acquisition. We've funded all of our current properties with our own funds just because we were weary of hard money loans and just are not that creative when it comes to financing. My partner and I both have several mortgages in our names and are just about at our limit. We operate as an LLC and thought about transferring the properties over but then read about the "Due on sale clause" and have hesitated. The thinking is that since the loans are all held with the same bank they would be the best option to tap into for some funds as they would account for the assets we have. Do you think a portfolio loan is a better option?

@Matt Devincenzo I appreciate you responding and thank you for the break down.

@Ryan Hehman Thanks for the response and insight.

@Randall Alan Thank you for the break down.

I was wondering if anyone could break down an email I received from a commercial lender at a local bank. We asked about a business line of credit of possibly putting up some properties as collateral or maybe refinancing. I’ll paste the response and hopefully someone could explain it in layman’s terms.

“The bank would look at advancing on investment properties, based on typical 20-25 year terms, depending on age/condition of property. The bank on the commercial side would be repricing at each 5 year anniversary (true 20/25 year maturity), based on the 5 year treasury plus a margin that would be assigned at closing. The rate would be dependent on overall financial strength of the borrowing entity/guarantors. We would be looking for coverage of at least 1.2x. Advance rates would typically be around 75%, but we have gone up to 80%. Properties held for more than 1 year would be advanced based on current market value, and properties held under one year would be advanced based on the lower of cost or appraised value, whichever is less.”