All Forum Posts by: Chan K.

@Joshua Dorkin I received a failure from your link, Joshua.

"

----- Forwarded Message -----

The original message was received at Wed, 28 Jan 2015 21:01:37 -0800
from localhost [127.0.0.1]

----- The following addresses had permanent fatal errors -----
<[email protected]>
(reason: 550-5.7.1 Unauthenticated email from yahoo.com is not accepted due to domain's)

----- Transcript of session follows -----
... while talking to aspmx.l.google.com.:
>>> DATA
<<< 550-5.7.1 Unauthenticated email from yahoo.com is not accepted due to domain's
<<< 550-5.7.1 DMARC policy. Please contact administrator of yahoo.com domain if
<<< 550-5.7.1 this was a legitimate mail. Please visit
<<< 550-5.7.1 http://support.google.com/mail/answer/2451690 to learn about DMARC
<<< 550 5.7.1 initiative. kn8si8255535pbc.244 - gsmtp
554 5.0.0 Service unavailable

Message received from BiggerPockets website (IP: 108.162.219.116) from Chan K. (@yahoo.com).2015-01-28 21:00:53 -0800------- Joshua D - messaging test. Let me know if you received this. Regards, You are receiving this e-mail as part of your BiggerPockets.com membership. If you do not wish to receive these messages in the future, unsubscribe using the link below. Do not reply to this e-mail. This was a system message from BiggerPockets Update All Email Settings ©2015 BiggerPockets, Inc. 201 Milwaukee Street, Ste. 200, Denver, CO 80206

@Joshua Dorkin Hi, it is working similar to the "contact an administrator". Here is the successful sent response. 

"

Thanks for your message! It has been sent to a BiggerPockets administrator. If your message requires a response, please allow a few days for us to get back to you — if nobody does, then it is possible your message fell victim to a technical error and you should try sending it again.

Click here to return to the site."

The question is - if you are getting 100 emails a day, I can see why the admin guy might slip and drop and not response completely. There is needed to be an algorithm which should do the counting and sorting of priority for receiving request. 

For example, if the same user sent an email to admin more than or equal 3 times, then increment the priority to high on the list of the admin. This will sort out priority and allow admin to get to the message instead of completely lost it. Another algorithm to consider is, if a message/request is not reviewed for a week, then increase the priority of the message to high on the list of the admin.

@Brie Schmidt and @Jon Holdman Thank you for providing the [email protected] email. I just sent the support an email, and will see if they would respond. 

@Joshua Dorkin Thank you for getting back to me. Here is the message I received. The "contact an administrator" is a hyperlink, where an embedded biggerpockets messaging mail will pop up if you click on it. If this link is broken or this hyperlink goes to a black hole, I recommend that this hyperlink be removed or replace by a phone number or [email protected]. 

"Permissions Error: You have been banned from the messaging system. Please contact an administrator if you feel this is incorrect."

Dear Brandon and Joshua,

Why BP does not have a support phone number or an official email address beside the "contact the administration" direct/embedded BP mail, in which is a black hole?

I woke up one day and my messaging system is banned. Since then, I have been trying to contact the "contact the administration" in the past few weeks, but I never got any response back from BP. Without the ability to message to other members, my network is pretty much dead. I could not read and send message back-forth to other members.

I suspect a few things here, either my messaging concern is being ignored or you don't have the infrastructure in place to sustain and handle the support system.

If it happens to me, then it must happen to other paid members in here. There is no easy way we can reach out to you guy. 

I would appreciate it if you can give me some justification of why my messaging system is being banned. I never performed any ads, abuse my messaging, ...... etc 

Regards,

-Chan-

@Chris Winterhalter Based on your description, term loan was what I was looking for. When I called, they did not offer/mention about it. I guess since I am premature, I don't know what to ask for. The LOC was mentioned and acceptable for me at the time even it is not the best option after this forum discussion. I believe in your recommendation, I envision something like a second mortgage form as a term loan.

I am not thrill about paying the 5.75 interest only for the LOC, but the equation/number still works, and I am able to continue to grow my portfolio. If I understand this right, it is still better than collateral the building. The lender actually recommends that instead of doing another LOC on the new purchase (currently is doing due diligent), the next property I am purchasing, I should collateral my new purchase. This could get very hairy in a tough time. FYI: he wants me to sit out 6 months before buying another one, leveraging off the new purchase.

For buy/hold investing, it is very difficult to seek out and accumulate down payment capital. Most private investors don't want to tight up their money more than 6-12 months. Also, the HML would never work on buy/hold due to their crazy interest rate. Maybe, I will become the HML myself once I have my multi-million, LOL.

@Mike Hurney the closing fee is 4-5% of the cash out.

@Chris Winterhalter Thanks for the confirmation. Your explanation seems appropriate as the building is financed with a commercial loan as well. 

- The institution is larger than credit union, but a lot smaller than Bank of America or TD Bank. They are local with branch in my town and a few adjacent towns. 

- The interest rate is 5.75% (prime rate + their)

- I already have another commercial building line up for this capital as we speak. The new purchase is already under contract. We are going through due diligent and home inspection phase now.

- The appraisal came up to around $1200 and the fee beyond after appraisal is another additional $2300.

[Chris] If you are going to deploy the capital somewhat quickly <1 year it might have been better to do a term loan.

[Chan] Would you be able to elaborate what is a "term loan" you refer to?

Hi Commercial RE Investors,

I have a question regarding home equity line of credit or HELOC.

Here is the scenario:

I went to a local bank asking for a line of credit on my 6-Unit. The lender would offer me an 80% LTV of the appraisal value. I really like the 80% part, so I proceed with them. I want the appraisal to be by income instead of comp, so he said that the fee will be a bit higher than comp ,$1200. FYI: typical fee is $750-$1000. Long story short, the credit line took about two months to close. The closing cost came out to be about $3k. The line is revolving for 1-year and be reviewed annually.

My question is:

1) Does it usually take this long to close on a credit line? For God sake, it usually only takes me about 1 month ish to close on a house, in which is a lot faster.

2) Does the closing fee usually costs this much, $3k?

3) Is the 1-year revolving and being reviewed annually are typical term is typical?

4) Does the 80% LTV easy to find? I thought this 80% and the income evaluation method are the only good things that came out of my whole process. Most lenders would only do 75% or less.

5) Why does a lot of lenders still appraise by comp when it is a 6-unit? I could never understand this. I thought that anything more than 4-unit is automatically be appraised by income.

Thanks ahead for sharing your input.

-Chan-

@Steve S. I don't think it is possible to finance 90% for investment property. The best finance option is 80%, and required 20% down payment. 

@Barton Wallace good point of view. I look at those brand new machines, they are very expensive $800 for a washer and $800 for a dryer. Originally, my thought was to make it convenience for my tenants as some of my units don't allow/have washer and dryer hookup in the units. I do agreed that the used machine from Craiglist is more affordable. I will prove the reliable if I can jump on one. Thanks.

@Rob L. I have been thinking about the card system. This thought process came up while I was having a conversation with one of my co-workers who rents a high end luxury unit (his complex has the card system). Yes, you are right, I am at this point still afraid of the periodic weekly unload coin. From sustainability stand point, this is an important question. I have a maintenance guy on the ground. My original thought process was to have him collect them, and give him a small percentage for the labor. It is also a trust thing .... don't know. I presume that a card system machine might be more costly than $800 per each machine dryer/washer. I guess this is a big investment upfront. 

If so, I might have to try out with the manual one. If it does not border me with the periodic unload process, then I will continue buying/placing more of them knowing that I will transition to an automatic (card system) at some point in the future. Financially, I prefer to limit the spending and continue to accumulate my positive cash flow and re-invest to compound on additional RE investment.

Hi BPer Landlord,

Where do you usually buy your used coin up laundry machine?

Thanks,

-Chan-