All Forum Posts by: Sam Levine

I'm working on financing a duplex as a non-owner occupant. After talking to multiple lenders, it appears there are more restrictions than I first imagined. Namely, the seller can only cover 2% of closing costs, 25% downpayment requirement and interest rates around 4.5%. This is my first shot at this, so I wanted to see if this is standard or if there are other ways to get a better deal on the mortgage.

Thanks in advanced.

Sam

Hi Nicholas,

This might not be the most useful answer, but it really depends on your market. Not only the city itself, but also the neighborhood. 

For example, in Saint Louis, the multi-family units I'm looking at tend to follow the 1.5% rule. However, in Tucson, properties tend to follow the 1% rule or even less. I found this out by spending a few hours each day for a week looking at properties in my price range and doing the calculations. Make sure to get accurate rent values for your property and areas by doing the same type of research on rental sites.

You'll find trends start to emerge. These averages are the market rates. Once you find what these rates are, you can be on the lookout for properties that are below these values. I don't know I'd that answers the question but it should be a good starting place. Feel free to PM me if you have more questions.

I'm planning on purchasing small multi-family properties using traditional financing (25% down with mortgage for the remainder). However, sellers seem to prefer all-cash buyers who can close much quicker than I can. To compete, I need to increase my offer price. Any other advice for getting accepted offers when competing with cash buyers?

@Russell Brazil A lot of good points here. I think the thing people like to overlook is that these amazing deals highlighted on the podcasts or success stories require a lot of effort. 

That is exactly why they are amazing; they are so outside the norm due to the large amount of effort or effective systems put into place by the investor. People should be looking at these deals as the pinnacle of what they can achieve rather than the norm. Something to be aspire to, and be inspired by.

I believe Josh and Brandon do a good job highlighting this in the podcast, but it can be lost among the noise in the forums.

My two cents.

@Jeff Schechter Bit of a longer story. I can PM you if you're interested.

Hello everyone,

Been listening to the BP podcasts for quite some time, and I'm feeling much more comfortable taking the plunge into real estate.

Looking forward to engaging the BP community specifically anyone in St. Louis looking to connect.

Hi everyone, I'm looking to get into quads in St Louis that can deliver 10% or higher cap rates. My strategy is going to be buy-and-hold through the use of a traditional 25% down mortgage. 

I'm currently doing research to build my team and plan on flying out to tour several properties within the next month. Please let me know if you have any recommendations for investor-friendly agents, property management services or inspectors. I understand the market can vary highly from block to block, so trust here is key. 

Finally, if any seasoned St Louis investors has time for a quick phone conversation, I would be highly appreciative.