All Forum Posts by: Michael Fradette

@Chris Seveney thanks for the quick reply. Sounds like private will be the way to go here. This is the first time I’m seeing someone mention a 2nd position loan, I’ll have to do some more research on that topic.

Thank you sir

Hi Team, 

Looking for feedback and ideas on how to leverage equity in a 3 unit building without doing a cash out refinance? The rate on my mortgage is amazing (low 3'%) and have no plans to lose that. Is anyone savvy on alternative/ creative ways to pull out/ borrow against equity in order to use the capital toward another project? 

Thanks all! 
Mike

@Brandon Sturgill thank you Brandon. All valuable points, I appreciate you chiming in on this. 

Thanks for weighing in @Greg Scully, @Bryan Blankenship and @Kurt Jones. 

@Kurt Jones blunt is good and agree it's not something to be over analyzed. We'll take what ever stance is necessary of course,  just want to be sure we are taking the right one and not overlooking. 

@Bryan Blankenship and @Kurt Jones-  What we'll do is communicate rent is going up to $XX, and if there is agreement we just lock in the lease then and there correct? 

We ideally would like them to exit so we can reno, but if we can elevate unit 1 and have stable rents above we would be happy for year 1. Regardless, the math works at the current, extremely low rents. 

Thanks all. 

Good morning all, 

My partner and I are in the process of acquiring our first 3 family. The first unit is vacant, making it easy to renovate and bring rents up to FMR. The asset has been owned outright by the seller for 30+ years. Floors 2 and 3 have been occupied by the same tenants for many years (12 and 15 years).

They are currently tenants at will, and pay 50% of what they should for each of their units. Our goal is stabilize the first floor, and provide a ramp period for the two occupied units to increase rents. My question is two fold and I'm also open to any pointers: 

1. Do we get them to sign a lease for a short period of time (4 months for example) and explain after that time rent is going up 50%? 

2. Do we keep tenant at will and simply explain that rent will go up in 4 months? 

Really appreciate the insight all. 

Mike

Thanks Mark. The gentrification of the surrounding areas of DOT are what sparked my initial interest in real estate. Appreciate the comment.

Hi all, 

Really looking forward to getting involved with the BP community. Originally a NH native now living in the Boston area. Have been in software sales over the past 6 years and currently building a foundation for pursuing real estate investing. Primary interest moving ahead is buy and hold of small multi-family in MA/NH. No properties yet, but goal is to acquire first one by end of 2017. 

All the best, 

Mike