All Forum Posts by: Michael Breedlove

Hey BP Fam,

I'm looking to do a cash out Refi on a 4plex that I own just outside of New Orleans. I'm considering doing a commercial loan and transferring the property into an LLC. I've been quoted 6.25% with 2 points and a 30yr term and up to 75%LTV. My current interest rate is 4.375% and credit score is around 770. Obviously, I know interest rates are going to continue to go up. This will be my first experience doing any type of commercial loan. Just wondering if the interest rate and the 2 points is what I can expect from most lenders. I need to find out what (if any) prepayment penalties there will be. Any thoughts or advice on this would be helpful.

Plan is to pull out some equity and purchase a STR property.

@Riaz Gillani thanks for the insight. That’s helpful info. I didn’t think the multiple LLCs could be under one loan. Appreciate you taking time to respond. 

How do portfolio loans work? If you have multiple properties under 1 loan, what happens if you want to sell off one of the properties? If you have properties under multiple different  LLCs can you still do a portfolio loan? Only have 2 properties, a 4plex and a duplex, but I’m just trying to gain some knowledge about this topic. Thanks for any insight. 

Thanks for the reply @Joe Splitrock. Hopefully it’s something that can come back soon. 

@Nicole Heasley Beitenman that’s a great suggestion. I’m sure there are app designers out there who’d do an amazing job getting a great BP app put together. 

@Jason Simon thanks for the reply. Yeah, it’s pretty frustrating that it doesn’t work anymore. I also got a new phone and the app wouldn’t install anymore. Hopefully they develop something again soon. 

Glad I’m not the only one! Thought I was going crazy. Ha ha

I know I’m late on this…but what happened with the BP app? Few weeks back I realized it wouldn’t open anymore and I thought I needed an update. Now the Apple App Store says the BP app is no longer available. 

Hey BP. Here’s the situation. One of my tenants has been only working part time because of this pandemic. For the past 2 months she’s been allowed to split up rent payments with no late fees. I offered to allow her to pay half rent for June & July and then starting in August her full rent payment would be due plus $100 until she repaid the remaining rent she owed.

However, she told me she found out she won’t be working full time again at her job until August 1 and has asked for a reduced rent starting in August of $100 less per month and no late fees. And said once she gets her tax returns next year, will pay back the remaining rent she owes.

I could use some advice. She’s a decent tenant that takes care of the property. I want to continue to help her through this pandemic But, not sure about those terms.

@Kent Ritter thanks for the insight. Yes, I have certainly enjoyed the perks of owning a 4plex. We got a great deal on it....slowly increased rents for the units to get them at or closer to market value....and was able to pull out equity....now the rents cover both mortgages on the 4plex and our primary residence. We’ve had minimum vacancies so far but having multiple units definitely has been a perk. If I could find another diamond in the rough like the one I have...I’d jump on it. The New Orleans market is pretty overpriced now.