All Forum Posts by: Nick M.

Hi guys,

I'm looking for a insurance company or broker that will insure a 13 unit residential building in the Philly area.  The kicker: It has knob and tube wiring.  Know of anyone who insures knob and tube?

Thanks!

Instead of electric baseboard, consider installing ductless mini splits.  

Hi @Guy Azta.  Did you wind up closing on your building?  If so, can you please share who is insuring your property?  I'm in contract for a 13 unit that has K&T and am having challenges finding a company to insure it.  Thanks!

@Jeff B.  I'm told at the end of the five years, the rate changes and is then fixed for the remaining 5 years...

Hi @Jeff B., @David Benton

Hope this note finds you well. After sharing your feedback with my lender he responded with an alternative for the ARM he proposed for years 6 - 10. Specifically:

First 5 years fixed at 4.75% and then to be reset at a fixed rate of 265 basis points over the corresponding Federal Reserve Statistical Release H 15 five year Treasury Constant Maturity with a floor of 4.75% (that's a mouthful!) 

Would you kindly share your thoughts?

Appreciate everyone's feedback. 

After sharing this with the lender, they've come back with this:

First 5 years fixed at 4.75% and then to be reset at a fixed rate of 265 basis points over the corresponding Federal Reserve Statistical Release H 15 five year Treasury Constant Maturity with a floor of 4.75% (that's a mouthful!) 

Thoughts?

Thank you.

Thank you for your feedback.

@Jeff B.  It is a daily variable rate equal to Prime + 1%. Floor 4.75%. No ceiling.

Do you suggest I counter, if so, with what terms?

Hi All,

I've received a commercial term sheet for my first commercial property ($390K loan on $520K purchase):

10 year maturity, 25 year amortization.  During the first five years fixed at 4.75 and then  after first five years interest rate will float at the Wall Street prime rate plus 1.00% with a floor of 4.75% unless a new fixed rate is established.

Few questions:
- By floating here does it mean interest rate will change monthly?

- Is 1% reasonable?
- How is a new fixed rate usually established?

Thanks!

@Martin Z.  Thanks for the suggestion.   Can you please share what an arm's length transaction is and how I can determine if it is.

@Jay Helms  Appreciate the idea.  However, owners C and D are just 6 months apart.  I don't think that would be indicative of anything related to market.