All Forum Posts by: Paolo Ruggieri

I have been successful with residential (built and stabilized 30+ properties portfolio)... I am looking not to pass to commercial.. as I start looking at properties I realize that I see some training on how to value a property... I clearly understand the basics (property value = rent / cap rate) but I need more in depth training as I see how each property is actually quite different (location, property type, % vacancy, type of tenant , offer/demand of that type of property etc)... i am looking for a formal training (book , video etc) or to develop a relationship with a local commercial realtor that can teach me in exchange of future potential business. Any one any advice?

I am interested as well... anyone?

I am trying to see if I should accept what bank offered me or if i should spend more time shopping around for same fees/terms/balloon with lower rate

Traditional  local bank quote:

-2% costs (appraisal , title , underwriting etc), ... GOOD  

-10 years ballon - OK-  I would prefer no balloon 

- 6.3% interest rate- TOO HIGH -I would like 5.5%

Is it possible to find a loan with 2% total expenses (including appraisals and title), 10 years ballon with 5.5% if LTV is 55% and borrower is very strong?

thank you 

Paolo

I have portfolio 20 rented single family homes to finance ($3m value, need 1.7m... 0.2 Refininace +1.5 cash out) that I own since 2-3 years.

I am perfect borrower (high personal and business credit score, stable rents, low LTV etc etc)

Traditional local bank quotes 2% costs (appraisal , title , underwriting etc), 10 years ballon and 6.3% interest rate.

Is there anything substantially better out there? I made some calls on based on a internet research, but found better deals only with some obscure brokers that want to charge me upfront fees before I close.... 

Do you know of anyone else reputable that could give me better terms ?

Thank you!

Paolo

(I have additional stable 13 properties that are financed well or that I am planning to sell soon that I am therefore not including in the finance portfolio)

I truly do not mind taking the property back- meanwhile I would be paid a lot more than normal. Cash flow is much better with a rent to own than a straight rent . The downside of rent to own are

- asymmetric market valuation opportunity: if market goes down tenant can drop, if market goes up landlord looses appreciation... it’s unequal... however if you do it when market is high you minimize risks

- finding tenant: it apprears not as fast and easy as to find a regular tenant or regular buyer... but maybe I am not marketing it correctly... any advice/experience?

All- as market is now high I think is a great time for rent to own: stable tenant that pay a premium...

I did a 2 rent to own in the past year but regretted it because I am now forced to sell at a pre-agreed price  that is much lower than market because market went up so much... I enjoyed stable tenants aging premium and taking care of the property, I am happy that they are able to get a home, but I could not take advantage of the market appreciation (gentrification doubled the value)

I found the tenants rent to own by chance. 

Is there anyone out there with experience of finding rent to own tenants?

Tipical rent advertising with a note that I do rent to own gives me only tenants prospects.. I tried listing it saying rent to own, butam only getting buyers

They key has been maybe that by chance they approved them on the same day.. and I organized closing them on the same day

Something similar happened to me some years back with a nice surprise - which I often wondered if it is a creative way to get funds... the got both approved and I got 2 lines of equity on the same home... for the past 3 years I borrowed 140% of the value instead of 70%. I oftened wondered what would have happened if I would have done 10 heloc simultaneously... is it even legal?

How did they go?