All Forum Posts by: Scott Kimberly

The rate that the Fed cuts is the Target Rate which primarily dictates liquidity between banks as opposed to mortgage rates. Banks still need to employ people and make money and pay interest out on account so they really can't drop mortgage rates too much further. Outside of specialty products and programs.

If you don't *have* to provide her access to the basement, then don't. Obviously don't violate your own lease, but lock away all those expensive basement items.

I would also start stockpiling as much money as you possibly can for repairs on the unit. If you're living there and not collecting rent, it might be hard, but you already know that she's will to damage things. God only knows what you'll have to seriously fix whenever you get her out.

Wish I could offer more advice. Just think about the stories you'll have right down the road, right? Right?

Also, if she threatens your with the virus at any point, that is an incredibly serious offense at the moment. Keep that in mind.

How many of you are leveraged to any extent and now think it's on the tenant to make up for YOUR leverage situation?

This is completely uncharted territory. Our economic capacity was reduced by an extreme percentage compared to literally any other time in history.

Stop pushing back on your tenants and start pushing back against the banks. Kicking people out will only exacerbate this situation. It's temporary, don't make it worse than it already is.

The virus seems to be a lot more bark than bite at this point, but we also know jack about it. It's still spreading and we don't know how it spreads. I guess we'll see what happens.

The markets are another story. They have been looking for a reason to correct since December 2018. Correcting 25% off of September '18 highs of 26k or so would bring the Dow down to 21k. The market tried to crash in December and trade war hope and interest rates BS fed it sugar and revitalized it. Well, the sugar high is over and now its time to correct. The market should go down to 21k or so before the correction could be considered "over".

Real estate will sit this crash out. There's no reason to affect home prices because the virus itself and the market reaction are happening too quickly for the real estate markets to notice. You might have local hiccups directly due to the virus, but nothing like that seems to be happening in the US.

@Adnan Dizdarevic

Lets put it this way, you've started and accomplished a lot more than I have. Unfortunately, there are a lot of idiots with a lot of money who are buying properties now because they think real estate will go up forever.

What markets are you looking at where things are going that fast? Also, are your deals still making sense overpaying that much? If they work $40k over, try offering closer to asking.

@Jaysen Medhurst, @Michael Reilman thank you both. I heard "whenever you want" on a podcast, but I think the guest had a track record and a good relationship with a smaller bank.

It seems like commercial doesnt have any advantage over residential from a refi timeline then. Which is good to know.

@Dan Gamache ah ok, that makes more sense. I know there are things like construction loans and 203k type loans in the retail (1-4) world and was wondering if that existed at all in the 5+ world. They probably do, but are certainly much different and harder to get and maintain.

@Jaysen Medhurst congrats on that property.

Is it true that a commercial building can be refi-ed whenever, compared to a SF that needs seasoning? 

@Dan Gamache would it not just be commercial financing at that point? Or do you mean for a commercial construction type loan?