All Forum Posts by: Mike Teri

Hi NY/NJ BP community, I hope you are all faring OK through these crazy times we're enduring.

My business partner and I are stuck -- we have finished the rehab portion of our BRRRR strategy on a duplex in North Jersey and are trying to refinance out of our high-interest hard money loan. It turns out that most brokers who typically will offer attractive refinance products (75-80% LTV) on an LLC-owned multi are currently frozen or are offering poor terms during the shutdown, which has no end in sight. Is anyone refinancing LLC-owned properties right now in the 75% LTV realm??

As always, thank you all in advance for your help!

@Sam Miller -- Thank you for the recommendation, I worked with these guys in the past on mortgage products for properties I didn't end up ultimately purchasing, and they have been amazing from a service standpoint. It is good to hear another endorsement!

Hi BP, my partner and I are looking to refinance on a 2-family investment property and are seeing a huge variation in available products with regard to available LTV, mortgage terms, interest rates, origination fees/points, and time-to-close. As this is our first refi and we do not have pre-existing relationships with any lenders, I am hoping that the local REI community might have some recommendations for competitive lenders they have worked with in the past. Your inputs are greatly appreciated, as always!

MT

@Vaughn Smith -- Thanks for the reco! I have reached out to your guy and am looking forward to connecting.

@Scott Upshaw -- Good looks! I will shoot you a PM.

Thanks for the inputs

Hello BP! I'm diving into a potentially 100k+ rehab project in Central NJ (Bridgewater area) and would like to leverage some of your positive GC experiences to give this opportunity a high-percentage chance of success. This is your chance to show your GC's some love and send them some extra business for the fall/winter months (and also help out a newbie in the process), so I'd really appreciate whatever help you guys can provide.

As always, thank you BP for your continued help with my budding REI adventure!

Thank you @Harjeet Bhatti for the tip, I was always under the impression there needed to be a seasoning period even with cash purchases. I will follow up on this with local lenders.

@Gary Barella my experiences certainly match your advice, but the Catch-22 is that raising cash typically requires having a few successful deals under your belt first, and I can't seem to land the first few deals without raising all cash. I have made solid contacts at local REI meetups to start partnership discussions, so hopefully that will add leverage to my first deal(s). But after reading up on cash-out FHA refinance options with mortgages up to 87.5% LTV, this looks like one of only a few avenues available to me where I might be able to land my first deal with my own capital (with a hard money loan, of course).

And as for Hoboken -- I'm milking a sub-$1000/mo rent situation at the moment in an apartment that is certainly under market value -- so until that fountain runs dry, this will be my home!

Thanks for your input so far! 

Hi BP! I have been studying/working hard to land my first deal in northern NJ but keep getting beat out by cash offers on cash flowing deals. Before I go down the path of private money, I have a question regarding a particular strategy that there doesn't seem to be much discussion about --

I have heard that buying with 100% cash and refinancing into an FHA or 5% owner-occupy conventional loan after a seasoning period is a possibility. While this would require "house-hacking" and losing the rental income from one unit for a year, I have a high W-2 income that could compensate for the reduced cash flow in Year 1 of ownership which should make the banks happy. I have found a property that cash flows well even considering the increased mortgage pmts/PMI related to the 3.5%-5% down pmt option, and I would of course be willing to follow the owner-occupy rule for Year 1.

Does anyone have any experience with this? Any lenders that can weigh in on this strategy? All feedback is greatly appreciated!

Thanks,

Mike

Hi @Ryan Goldfarb, 

I sent you a connection request before I saw your post, perfect timing!

Thanks for reaching out, I will PM

Hello NJ BP! 

I am looking for recommendations for a vetted GC and Structural Engineer in Northern NJ, preferably within the Hudson, Essex, Union, and Bergen county areas. With all of the high-price construction and incredibly high percentage of rental property investment in this area, I know that GC's won't come cheap and that a good GC is worth the premium. I am hoping to pull from your experiences and avoid the pitfalls of getting taken for the proverbial 'ride' as I am just getting started with my first REI multi-family in Bayonne. I would love to have my first foray into REI start with a success story rather than an expensive hard lesson =)

With regard to the Structural Engineer, any foundation specialist will do. I am under contract on a MF property with water damage from a burst pipe that also happened to allegedly crack the foundation, causing flooding to a neighboring property. I am interested in having a firm understanding as to what the corrective action will cost. Your help is always appreciated, BP!

Thanks,

Mike Teri

Hi @Marc Weisi, when looking in Bayonne just be aware that there will be a property tax revaluation sometime in 2018/2019 due to all the redevelopment plans around the light rail stations and the new ferry terminal (if approved). The high property taxes in Bayonne (typically in excess of 1k/month for multis) already make it very difficult to find positive cash flowing properties on the market. Make sure you are building in some cushion for yourself when running the numbers so you don't get yourself in a negative cash flow situation if/when a reval occurs. 

@Mark Lladas, I'd like to be on the invite list for a local meetup if one is being organized. There was an attempt to set one up earlier this year, but it fell through. Always looking to meet investors/resources in the local market!

Best Regards,

Mike