All Forum Posts by: Matt D.

Are there many low or no doc loans using a 90 percent LTV? The purchase price is about $2 mil and it will be owner occupied.

I know this is above the FHA limit which is creating a rate in the 5 percent (plus) range. The home is in San Diego county. I spoke to a company called MBanc but not sure of their reputation and whether they can execute.

Looking to do a ADU at some point on the same lot. Any guidance or references would be great.

Are there any interest only loans out there under 5%, 75% LTV, non-owner occupied SFRS? I have about 10 homes I'm looking to do if possible.

I was going to start looking around a bit but do not want to waste time if there is nothing like this out there. I do not mind paying the points as I am mainly focused on the monthly payments.

Input would be greatly appreciated.

@Jonathan Hernandez

Very strange. Not sure the stage of the contract your in but have contingencies been removed? What are the terms of the contract saying? Are you ready to close? Is your relationship adversarial with the seller? Not sure how many tenants there are but if your buying it cheap enough then you may just do a proforma based on the financial health of the tenants. Are they all paying? Either that or start knocking on doors and introducing yourselves.

Where are interest rates headed? Are lenders getting more conservative ? What sort of rates are out there for 75-80 percent LTV cash out? I've been considering refinancing 13 SFRs that I have but the problem is that most lenders cannot do any more than 4 or so and I already have 7 other Fannie Freddie loans. I do not understand why they have this cap but I'm concerned about this interest rate environment. The market seems to go up and down as far as rates and timing is everything. I always look for high leverage and low rates and I'm wondering if anybody has noticed any pull back from lenders? I like to minimize rates and maximize leverage with a lender that will allow more than a few homes in a rental portfolio. The properties are in the Las Vegas area and the market has improved drastically. Seems like I would need to move fast before interest rates take a big bump upward. Any comments or references would be greatly appreciated.

@Robert Johnson

Agreed 100%

I’m looking for assistance or any ideas on how to deal with tenant default, breach and move out balances owed. Obviously tenants that break leases, leave property in shambles, etc and create damages above and beyond the amount of security deposit will owe a balance. Some of these balances can be significant and some are maybe a couple hundred dollars.

I do not have the time to chase down these tenants through small claims courts etc and thought maybe there is a method that could be recommended. I think if there’s an amount appearing as a negative on their credit bureau that eventually you might see some money. However finding a reputable collection agency to deal with this has always been a problem. They seem to just disappear and borderline unethical.

Does anyone have a method they use to facilitate the collections of these balances?

I've never had a PM add value. They fix everything even if it is the tenants responsibility. They look to create a minimal amount of work for themselves and make the most money as possible. Security deposit disbursement at the end of the lease seems to 100 percent all the time despite any damage. Pure conflict of interest. If your not concerned about the NOI and more passive,and if it is inefficient for you to do it then perhaps that's the direction. Keep it in-house if your looking to maximize returns and maintain control.

@Catia T.

Where is your 5 or 10 percent vacancy factor in your math? Maybe I am missing something. This will assist in your actual cap rate.

@Mike Burkett

Do you have any good sources?

I’m wondering if credit unions, mortgage bankers or banks provide the best financing and leverage. I just recently did a refinance of 8 homes with a mortgage banking company. I believe what they do is fund the deal then sell it off at a certain point if they do not want to keep it in house.

I also recently did a refinance with a credit union that was very successful. I have not been able to do anything with larger banks as they want so much equity in the property that it does not make much sense as I like to use more leverage.

My question is, on the $2 mil portfolio I am trying to refinance, should I use a a bank, credit union or a mortgage banking type. I am hearing rates from credit unions in the 3.75 percent range and I’m not really interested in paying more than 5 percent. Rates are all over the board.

Any input would be greatly appreciated.