All Forum Posts by: Monish Lillaney

Assuming you have enough to pay the loan off in its entirety, the best thing to do  in my opinion, is to jump in the amortization schedule to a point where it will take X years for the tenant to finish paying it off. That way you can have it paid off in X years without putting the FULL amount down to pay it off. That to me is much more lucrative. With your extra cash on hand, you can now buy another property, while having a couple being paid off in <X years. The tenants money is working hardest towards your loan at the end of the amortization schedule, not the beginning. Also, property management is key to make it truly passive. The moment you have a property paid off, use that money to pay for the property management, allowing you to focus on scalability. Consider the cashflow off that first property as a sustainment cost. For capital improvements, get a good handy man (i.e. not through property management). The sooner you pay off 5 units, the sooner you can use that cashflow for property management + paying the 6th unit off in cash in the very first year (and for every subsequent unit!!)

Hello all, Have a handful of properties all with conventional financing. I've created operating agreements, created and filed the Certificate of Formation, and created bank accounts for each property. I've also transferred the title at the Registry of Deeds from my name into my LLCs name. The last step I would think is to transfer the Home Insurance policy over to the LLCs name as well -- Would this create any red flags for a lender typically? I know they usually don't check the Registry of Deeds and don't run title searches (unless you stop making payments), but I am concerned of the "Due on transfer" clause where if ownership changes, you would be asked to pay the note in full immediately. 

Any one have experience with bringing your properties financed with conventional lending into LLCs? 

Thank you all, you guys are so supportive!! I ended up closing with TD Bank, they gave me a 3.1% rate for a 30 year fixed INVESTMENT LOAN (not owner occupied !!) -- i thought this was phenomenal -- u have to show 750,000 in liquid funds to get this rate but I'm waiting for the right opportunity to deploy these funds. Boston is a tough (premium) market

i ended up going with becintegrated, comes with facial recognition. It is also all POE wiring making it much easier

I am about to do my first cash back refinance. Here are my final two contenders as options... Which would you choose, and why?

3.1% 30 year fixed, with 170,000 cash out    -- positive cashflow of 1500 after cashback

3.375% 30 year fixed, with 220,000 cash out   - positive cashflow of 1400 after cashback

Also if you have a better lender/rate for a 2-family investment property in the Boston area, I'd love to hear who you're using
I'm personally leaning towards the higher rate (more cash out!!) 

Thoughts?

Does anyone have a recommendation for an intercom system with Video for a 3 family house? I have gutted it and am turning it into 3 condos, but am having a hard time determining what kind of intercom system would be most suitable. The intercom is to communicate with the mail room and guests, and allow each unit to release the electric door lock

I am not looking for a subscription with an annual fee. A one time fee for the hardware is an ideal solution. 

I wouldnt sour a deal over something so menial, especially in this competitive market. The updates would cost you $2000? And you are not required to be up to date for NEC2020 electrical code changes. In terms of safety, your house is electrically sound. New code says you need a service disconnect outside for firemen. Do you think they'll upgrade the service for you too? If its not structural, its an easy fix

well the problem with a refinance which i don't like is that you are paying interest immediately on an even larger loan. So when you do a cash-back refinance, your monthly payment is going up (unless interest rates have dropped enough to get the money and pay about the same per month) - at least with a HELOC i get to decide "when" i start paying interest.

Either way my question is still, refinance the whole building, or individually?

Bought a house for 1.1mil, a three fam, put 200k into it. My cost basis is 1.3mil -- Condos are selling for 600-700k in my neighborhood for the size of one of my units. Am i better off doing a HELOC on the whole property? I'm assuming the appraisal will only come in at 1.4-1.6 mil

Whereas if I make 3 condos/deeds, refinance each, and initiate a HELOC on each, I should be able to get a 600k appraisal on each, assuming 80% LTV. I owe about 760k, and 1.8 mil at 80% is about 680k. So I'm hoping to basically get a HELOC of about 680k without selling the property. Thoughts on the best route to maximize capital without selling?

Cheers!

@Jaysen Medhurst ive heard bad things about resilient channel, specifically having the system fail to hold sheets up, causing liability... the plastering on the other hand a friend is doing the entire 3-fam for me for free (in return he's purchasing a home using me as his RE agent and ill be giving him back his commission on the buyers side, more like an IOU for the plastering...)