All Forum Posts by: Ray G.

Great advice everyone, thank you for your input.  I'll be reaching out to all recommended companies.  If i find someone i'll give feedback on who and why.

Hi Everyone,

In the process of buying a quadplex and a triplex in Indianapolis and i'm having a problem finding insurance companies that will respond or provide a decent estimate.

I've been reading the forums for some time and many people mention the cheap prices they are getting for insurance but the quotes i'm getting for ACV of my deals are around 1900 to 2000/yr and at those prices it really kills the cashflow.

What insurance companies are people having good luck with?

Thanks in advance for your input!

Thank you Sean! very helpful.

@Jeff Moore Thank you for the feedback, very helpful!

@Justin Cambra Wow, good to hear as well.  Wondering if you'd be willing to send me contact information in PM for the person you worked with at US Bank to see if they can offer a similar deal?

Hello BP gurus,

I posted this in the multifamily forum and may have posted there incorrectly, so reposting here while i figure out how to remove my other post.

In the process of purchasing a small commercial residential 12 unit multifamily deal. I'm pretty well versed on the non commercial residential side but this is my first commercial residential deal and i could really use help from the gurus to explain whether these terms make sense.

Terms:

Purchase price: $299,000

Loan Amount: $224,250

Loan to value: 75%

Term: 20 year with re-pricing every 5 yrs based on 5 yr treasury + 3.50 margin

Amortization: 20 year

Fee: $1,125

Rate: 5.50% for 1st five years prior to 1st re-pricing.

Questions:

1. How do i analyze the re-pricing every 5 years, is this similar to a 5 yr ARM?

2. What exactly is the 3.5 margin?

3. Since this is the first time i'm doing this, what questions should i ask for clarification that i'm sure i'm missing?

In the process of purchasing a small commercial residential 12 unit multifamily deal.  I'm pretty well versed on the non commercial residential side but this is my first commercial residential deal and i could really use help from the gurus to explain whether these terms make sense.

Terms:

Purchase price: $299,000

Loan Amount: $224,250

Loan to value: 75%

Term: 20 year with re-pricing every 5 yrs based on 5 yr treasury + 3.50 margin

Amortization: 20 year

Fee: $1,125

Rate: 5.50% for 1st five years prior to 1st re-pricing.

Questions:

1. How do i analyze the re-pricing every 5 years, is this similar to a 5 yr ARM?

2. What exactly is the 3.5 margin?

3. Since this is the first time i'm doing this, what questions should i ask for clarification that i'm sure i'm missing?

@Jonathan Twombly

Now that's some sagely advice.. one everyone reading this should be paying attention to.  Many writers, forums and blogs, will give you risky ways to do business.  With great risk comes great reward everyone says.  But remember, bad stuff happens and you have to hedge against it and make sure that you and your family come out of it safe and sound.  Don't just take risk if you don't have the money to lose.  Coming back from those pitfalls could ruin literally 10's of years worth of hard earned money if you have to pay it back.

Take Jonathan's advice and build a sound foundation.. it will pay off in the long run and you'll be happy you did.

Doesnt sound bad, id do a cash on cash analysis along with cap rate and see how it compares to those around it.

Thank you @Andrew Postell

Thanks @Mike D'Arrigo, i've sent you a message.

Hi Everyone,

Thanks for reading, would appreciate your insights on my current needs.

I just sold a property in mid-may and i have 120k of equity and at least 100k of a loan i need to 1031 exchange.

I have been searching in Texas and Indianapolis with a preference on indy for cash flow.

I found a seller who's selling a package of 5 duplexes and 3 sfh's for about 350k (meets my exchange criteria) 

I can't find a lender who will lend on this type of a package.  Any thoughts or guidance on this would be appreciated.  Im getting antsy as i'm a little over 20 days into my 45 day identification period.

Thanks!