All Forum Posts by: Sean Bayliss

This is a really late post, but M&T Bank completed a cash out refinance with no seasoning time.  The bank was great and the process from start to finish was 8 week.  Absolute pleasure.

Good Afternoon BP World,

Recently, my partner and I purchased a shell (new roof and windows), fully gutted, 8/9 unit property.  Over the past 4 months the two of us have fully rehabbed and rented 3 duplexes.  Now, these came out pretty good and are cash flowing.  An 8/9 unit full rehab is a next level project for the two of us.  Looking for a few suggestions or input on the below bullet points:
* Do you hire a general contractor to complete all of the work?
* Should we sub out different jobs to save on costs?
* How many contractors would you typically have bid on the project?

Lastly, as far as financing goes, we own the building outright.  The bank we've used for 3 BRRRR's told us they would not do a construction loan for this project.  Any thoughts out there on creative financing for this project?

Best Regards and Stay Safe,

Hello,

Currently I'm in the cash out refinance process on a duplex. The loan terms from bank didn't give an APR, but stated "maximum legal rate". What does this mean?

Interest. The unpaid Principal Amount of this Note shall earn interest calculated on the basis of a 360-day year for the actual number of days of each year (365 or 366), from and including the date the proceeds of this Note are disbursed to, but not including, the date all amounts hereunder are paid in full, at a rate per year which shall be:

fixed at __________%.

If no rate is specified above, interest shall accrue at the Maximum Legal Rate (defined below).

Maximum Legal Rate. It is the intent of the Bank and Borrower that in no event shall interest be payable at a rate in excess of the maximum rate permitted by applicable law (the “Maximum Legal Rate”). Solely to the extent necessary to prevent interest under this Note from exceeding the Maximum Legal Rate, Borrower agrees that any amount that would be treated as excessive under a final judicial interpretation of applicable law shall be deemed to have been a mistake and automatically canceled, and, if received by the Bank, shall be refunded to Borrower, without interest.

Default Rate. If an Event of Default (defined below) occurs, the interest rate on the unpaid Principal Amount shall immediately be automatically increased to five (5) percentage points per year above the otherwise applicable rate per year, and any judgment entered hereon or otherwise in connection with any suit to collect amounts due hereunder shall bear interest at such default rate.

I use Rentredi which is more of a property management app.  The app is great for rent collections, but also finding new tenants as well as managing the day to day operations.

@James Masotti Rookie

Thanks for the responses.  I'm currently investing in the Albany, NY and Guilderland, NY areas.  I've set up a meeting in a week with Trust Co Bank which is a local portfolio lender.  Any other recommendations on portfolio lenders in the Albany, Johnstown, and Saratoga areas?

Good Afternoon Bigger Pockets Community,

Happy holidays to you and yours! Earlier this year a partner of mine and I paid for a house in cash, $75,000. At closing the house appraised for $80,000. The house was bought through an LLC and is considered a commercial property, however is only a duplex. After several attempts with two major banks and several portfolio lenders I have had no success trying to refinance this property. Several reasons:

1. Big banks will not refinance $56,250 (75% of $75,000) because the property is not 5 units or more.  From my understanding anything five units or more is considered commercial real estate.

2. The portfolio lenders would lend to me, however my LLC is in the state of PA and not NY. NY being the state the property was bought.

The reason I invest in upstate NY is because this is where I grew up, I'm very familiar with the area, and understand the market. A friend of mine from home and I just filed for an LLC three weeks ago and have just put 2 duplexes under contract. I'm looking for suggestions on how to refinance all three properties, given two different scenarios. The two duplexes are very similar in price at around $75,000-$90,000.

Thanks for reading and I'm looking forward to networking with anyone who is interested.

Hello Everyone, 

Last month I purchased a duplex for cash in the Albany,NY area. Currently, I'm an out of state investor living in PA. My goal is to do a refi on the property and take the equity to invest into another property. No bank would finance me being out of state with an LLC. Can someone suggest what bank I could do a refi in the Albany area with. The property is a two unit duplex.

Looking throughout the Lehigh Valley.  Please PM me.

Hello Bigger Pockets Community,

I'm looking for a roofing contractor who services slate roofs in the Lehigh Valley.  Any recommendations would be greatly appreciated.

Best Regards,