All Forum Posts by: Moshe H.

yes @Bill Hughes I'm talking about a 30-year amortization and a 30-year term. I got one recently on a 4-unit investment property, voluntarily paid 1 point to lower the interest rate by a quarter of a point, and did have to pay a few thousand in closing costs.

Why do you need a commercial loan? It sounds like you are talking about a single family investment property. You should be able to get 30 year financing on that as a residential investment property and only pay something like .75%-1% above owner occupied rates. Commercial is necessary for 5+ units and usually comes with shorter terms, adjustable rates and/or balloons.

So, why take more equity out of your primary and put that on the line when you can get a loan backed by your investment property, which won't put your primary at risk (or at least less risk - depends on your entity structure).

You said you talked with a bank... maybe approach a broker, who will have access to many banks and can find you a better financial product. Refi the investment house, pay off the credit cards and as much of the HELOC as you would like, then take money out of your line again for the next house and repeat. Additionally, once you have the mortgage on your investment property secured, you can use the equity in your primary to purchase even more investment properties. According to the bank's strategy, you're tying up equity in your investment property and leaving it sitting there.

Hope that made some amount of sense. I don't know if it's "sage advice" but it's one guy's opinion :)

It makes sense to consult an attorney. I don't quite understand the people that are jumping to criticize the borrower here. It sounds like a predatory lender who is engaging in potentially illegal practices taking advantage of a naive borrower. That's why they have regulations in the first place. We don't say to the borrowers, too bad so sad... should have read the fine print!

PS: Consulting an attorney is not the same as getting law enforcement involved. What you say to the attorney is privileged. S/he will not report you to the police but will advise you on the best steps you can take going forward.

@Bojian Li

Are you planning on doing any of the work yourself? Labor and materials for construction cost more in NY than many other parts of the country and you have to think about whether this property can be properly renovated in its entirety for only $100,000. I see you live way out past Middletown though so maybe things are somewhat cheaper there?

Maybe you could do enough to make it habitable and then move in, saving on housing costs while doing a "live-in flip".

Good luck and welcome to the site! Spend a lot of time on BP, listen to the podcasts and do lots of research. I haven't read it but J Scott's book on Flipping Houses, published by BP, seems to be very well-regarded.

PM me as a reminder and later I'll send you a property you might want to look at.

Hi Kevin, I have heard good things about Wendy Goodwin at Leading Edge Property Management. Have not yet used her personally. Google her, Leading Edge has a website.

@Allyssa Compton is in New City and should be able to help you out :)

@Don Konipol does that thread still exist anywhere?

BP is an amazing place. You "out" a slick-worded scammer and get him to either close his account or have it closed for him by the moderators within 24 hours while I munch on popcorn reading the thread. :-)

@Hersh M. If I'm not mistaken I heard about that on a recent BP podcast. Piqued my interest as well.