All Forum Posts by: Robert Santangelo

Welcome and best of luck, Frank!

Depending on how your listing contact is written, it's possible that a commission is owed (to your broker), but is taking the seller to court really the reputation you want to establish for yourself? Move on...listen to your broker. It sounds like you have an oddball client. I wouldn't put anything in writing about her, but you could call the next agent and relay the story once it hits MLS. Just my two cents....

I agree about talking to other lenders to see about 25% down options. Is there any additional equity in your duplex that you can tap? There's no harm in floating out the seller financing question, but it's probably unlikely. But, if the seller is truly motivated, maybe they'll go for enough of a second to get you the LTV needed. Good luck

Hi...you might want to grab a used copy of Frank Gallinelli's "What Every Real Estate Investor Neeeds to Know About Cash Flow."  It'll answer all of your math questions.  Of course, there is the calculator on here, too... https://www.biggerpockets.com/buy-and-hold-calculator

Isn't our PA transfer tax great!? :-) I had a conversation, recently, with a sharp PA Real Estate attorney who surprised me when he told me that it was possible to transfer an individually owned property into a single member LLC (owned by same individual) without incurring the transfer tax. I've since read the statute, and can't quite determine what exception this transfer seems to meet, but it may be worth further investigation on your part if this is your scenario. I haven't confirmed this beyond his statement, but wanted to share.

Would a transfer into the LLC create any issues with your lender? Factor that in, as well.

I'm a (very) small brokerage, so I'm partial to small, but larger offices can offer great training.  I suggest you look into the training program offered regardless of who you consider. Talk to a number of agents 1-2 years in and get their feedback. Also, when you have no experience, the "big name" office may offer you some instant credibility. In general, you're pretty portable in this business, but get trained well, build your foundation, and then you can transition into anywhere that feels right if you're not already there.  

Good luck! 

It's it really a balloon or are they offering you a 3/3 adjustable? 3/3 meaning fixed rate for threel years...adjust...fixed for three...rinse & repeat.  The disadvantage of the balloon is that it carries the risk of them not approving you in three years...and it likely comes with additional fees at that time. A 3/3 or 5/5 gives you permanent financing (with a 20 yr term, probably), albeit at an adjustable rate. The goods thing is, though, as time matches on, any increase in rates will be on the lower outstanding balance. If this bank won't do 3/3 or 5/5, I'd talk to another. The balloon may commit you to future costs and potential anxiety, in my opinion. 

You may want to try speaking to a local, community bank's commercial lending department....or several of them.  They're not bound by Debt to Income ratios, and can be receptive to viewing the investment on its cash flow merit.  Given the right circumstances, this will preserve your personal buying power.  You're probably not going to see 30 year fixed rates, but you don't get something without giving something. 

Run the address through county records and then start digging on the names(s).

I'm also looking for water, sewer, landscaping/snow removal, & garbage as well...maybe the tenants cover all of that, but be sure not to overlook.  Also, since there is a garage apartment, how about rent for the garage spaces, themselves?  Are you locked into leases and are rents at market...below?  Another thought...the 10% vacancy and the cap rate don't feel like they jive, to me.  If 10% vacancy is the norm, then I feel that the cap rate should be higher...but that's a blind comment w/o knowing the market, so just consider it a thinking point.