All Forum Posts by: Willy M.

Hello all,

I've been investing in real estate for only 2 years and mainly do fix and flips and wholesaling. The advice I am seeking is this; I have 2 fully rehabbed properties listed for sale and have been on the market for more than 3 months and if they don't sell by the end of the year, I am looking to turn them into rentals. The issue I have is both properties were purchased under my LLC and my credit union does not do 30 year residential mortgages, only 15 Year Commercial mortgages. I was referred (by my credit union) to a mortgage broker who informed me that since the properties are owned under the LLC (and not my personal name) they would not qualify for a 30 year residential mortgage. I ran the expense numbers with the 15 year mortgage option the credit union offered me and after all expenses (loan payment, taxes, insurance, utilities) I am cash flowing around $200 per month (without factoring in vacancies, property management or any major repairs). I would much rather have a 30 year mortgage in place for 2 reasons, more cash flow and a lower monthly mortgage payment.

1) Should I transfer the homes into my personal name? if so, how do I go about doing this? What is the downside of doing this?

2) Since I am located in Pennsylvania, do you know of any banks that could offer me a 30 year mortgage on these properties and leave them under the LLC?

If you can give me some direction, that would be greatly appreciated.

Hello,

I am looking to build my team of contractors. If you invest in the Lancaster, PA area who do you use for the following:

roofer

painter

drywaller

carpenter

electrician

HVAC

5%

ok Joel thanks for the input

me too...

I need the same advice. here is what my bank is offering me on a commercial loan:

-maximum LTV 80%

-maximum term 15 years

-ARM 25 years

-Rates are fixed for 5 years at a time

-Fees consist of actual costs plus 0.50% of the loan amount

Let me know...

Hello, my local credit union I currently do business with gave me the following option for a mortgage to purchase a commercial property.

-maximum LTV is 80%

-maximum term is 15 years

-amortization period is typically equal to the term, but a longer amortization period is available if you are comfortable with a balloon payment (max is 25 year amortization)

-Rates are fixed for 5 years at a time (rates are currently ranging between 4.75%-5.50% for most borrowers)

-Fees consist of actual costs plus 0.50% of the loan amount

Is this a good deal? Or should I "shop around" with other banks?

Thanks!

Wil

Lee sorry for the late reply, from what I can calculate capex is less than 10% of the yearly gross revenue. The commercial storefront tentants have been in for more than 5 years each and yes they are on a month to month contract as well.

Hello,

I have an opportunity to purchase a Multiunit (Commercial, residential) property with a $50K yearly gross rental income. The property consists of the following:

2 Commercial store front units

4 2BR Apartments

14 Garages

Purchase Price = $400K

The property has strong tenants on month to month rental leases. Would you buy???

I recently completed the 2 courses to become a licensed real estate agent in PA and have not taken the state exam to get licensed. During my coursework I was informed by an instructor that a "licensed" RE agent who purchases a property directly from a homeowner can be viewed as a "non-ethical" business practice since the RE agent has knowledge and can be seen as taking advantage of the home owner. Not sure if this is true or not? Can anyone give their 2 cents on this? Ultimately, I only want to have my license to have access to the MLS and to be able to represent myself in my own deals. I do not want to be a buyer/seller agent. I only want to wholesale & flip.