All Forum Posts by: Pavel K.

Have you mostly talked to the bigger banks ? I would suggest talking to a couple of local credit unions to see if there may be some options outside of typical conventional loans.

Agreed with others on this thread. 

Estimate the damages and run the labor / replacement costs and see if its' worth persuing the tenant (assuming tenant even has any money). Vynil flooring is pretty cheap. 

Keep in mind you'll be paying a lawyer and that will eat into your fees (lawyer's aren't cheap) unless you directly handle the case yourself without lawyer's involvement.

Thanks for the feedback -- what about if you own a property for 1 year let's say under personal names and you switch the title to an LLC without the lender's knowledge, in case they do force the due on sale clause and find out, is it fairly easy to revert back again ? So many mixed opinions on this topic.

You're really better off not sharing about real estate investing with those that are close to you. A lot of people without any knowledge or insight will say all kinds of things out of fear or from things they "heard" and it can influence your decisions and judgement. Not that some may be right and have valid points and opinions but I believe it's best to share with people outside of your circle and get advice from those who are actively in this business. This way emotions stay out of it.

Hi all -- I am looking for some feedback on Conventional financing vs Commercial financing.

If you purchase a property in cash, renovate + do a cash out refinance -- do you typically do the refinance into an LLC/commercial 25 year amortized loan or place the property on a conventional loan and change the name from sole proprietor to an LLC on the title to limit your liability?

Getting a conventional loan will offer the best rates and you can do a 30 year loan, but there are concerns of the lender calling a 'due on sale' clause.

How are you guys typically handling BRRRR strategies when it comes to doing a cash out refinance?

Do you cash out refinance with a lender straight to LLC or Conventional when it comes to aquiring the loan after the property is rehabbed?

List the property yourself via Zillow Rental Manager and get syndication on Zillow/Trulia/Hotpads. Post on Craigslist.

Do you know someone you can trust in the area who you can offer the keys to and pay them for each scheduled showing? Pay someone per visit to do group showings, once a week let's say. 

Have the tenant submit applications directly to you. You handle all the screening process and only pay your person who's doing the weekly showings.

Limits your costs as long as there's someone you can trust who youre' comfortable with.

One week is probably a good timeframe for what you're describing depending on the size of the rental though. 

You will be able to see when the tenant initiated the payment. So for example, if I log in to Cozy and see that the tenant submitted their payment on the 1st of the month, I'm OK with the fact that it may take 5 days for the funds to finish processing into the account, as the tenant essentially submitted their rent in a timely manner. Regarding late charges, not sure how it is in other states but here in Massachusetts you must wait 30 days before you can charge someone a late fee.

I would try local credit unions, they are more responsive and easier to get ahold of. I'm not a fan of dealing with bigger banks and the rates are typically better from credit unions in general.

I would suggest talking to a good mortgage broker before making any changes to any of your W2 jobs that you have held for at least 1-2 years. Have the mortgage specialist review all of your #s and run by all your pay stubs, history etc first to make sure you won't have any issues when it comes to financing a deal. This is not really an issue if using cash to fund a deal, but if you plan on using the bank -- that is what I would do. Have them review your tax reports too and make sure everything is fully vetted.