All Forum Posts by: Shuvrajit Mukherjee

@Shuvrajit Mukherjee what specific data are you looking for that Zillow did not provide?

Awesome to hear you have a specific date picked out to take the test!  I'm sure you will pass on the first try!

Hey @Shuvrajit Mukherjee - First off, I am not a developer, but just wanted to ask some clarifying questions to better understand what data you are searching for.

It seems you want data from the Multiple Listing Service (MLS) not NAR? Because you want property information that realtors are listing correct?

Is this information not available for you to scrape via Zillow or Redfin?  I think one of them offers a public API.

Once you get your license, you can join the CAR Chicago Association of Realtors and I have found them to be extremely helpful with questions like this.  When are you planning to take the test?

Quote from @Shuvrajit Mukherjee:

Does anyone know of any banks or credit union that does cash-out refi with 6 month's seasoning (conventional loan)? Not looking for DSCR or broker, the property is appraised at only 100k, and the associated fees with brokers make the deal almost impossible to work with.

 Conventional loans require you to wait a year for cash out. I am a broker who only charges my repeat investor clients 1.5% regardless of the loan amount. I also have cash out with zero seasoning available for your future buy and hold needs. I sent you a connection request. I am sorry you've had bad experiences with brokers, but there are some good ones who would like to help you grow your portfolio and value repeat business. 

The good rates and low fees come with fannie mae rules, so if you didn't pay cash and can't use delayed financing, the answer will be no. Or, if a bank does offer it, it'll have the same high fees you are looking to avoid. 

Quote from @Shuvrajit Mukherjee:

I plan to get into Multifamily(12+ units) in Chicago this summer, wanted to sort out my finances accordingly. 
Is it possible to get financing with 10-15% down? I aim to acquire properties with below market rent, with scope of some rehab, like maybe upgrade kitchen appliances, paint cabinets, new lvp flooring etc. 
Is it even possible to find such deals in $800k-1M range in Chicago B/C neighborhoods?

I am a new investor and looking for direction from seasoned investors in the area.

Thanks :)

If you want to go for a Multifamily (12+ Unit deal) this summer then I recommend you do the following;

1. Since you're a new investor consider partnering with an experienced investor to take down a larger building. The 10-15% you can provide is often welcomed by experienced developers. You will also learn what's required to structure a partnership. This means setting aside some of the $ for a Real Estate attorney

2. I recommend you contact the Community Investment Corporation (CIC) and learn about their programs. Full Recourse loans with 20% down. A little higher than your 15% target.  But your experience may still be an issue hence the partnership with an experienced developer.  Another reason for CIC- they will provide the $ for rehab; after which they would convert to a long-term loan. 

3. Regarding whether or not you'll find what you're looking for in the $800-$1M range in B-C neighborhoods.  If you limit your search to what's listed then the answer is it may be tough.  If you allocate some of your $ to an off-market strategy you increase your chances. That is what seasoned investors do.

@Shuvrajit Mukherjee

I don't know Chicago but in today's market, in general, the way to get the big value boost is something distressed.  we'd all love to find something where we could double the value with appliances and flooring.  but in most markets this has gotten much, much tougher in the last several years.

i haven't looked at your other posts but could you house hack a 3-4 unit?  this gives you a huge advantage.

That strategy is what many investors go after. However your numbers are flawed in this example and it wouldn't be worth the time, risk, nor effort. 

If you have an 800k back-end ARV and get 70% LTV, your new loan would be around 560k (also note that cash-out refis have a higher interest rate that no one accounts for in the BRRRR method). You originally bought for 660k putting 20% down so your original loan to pay off is roughly 530k. You pay off the 530k with new 560k loan leaving you with 30k cash to recoup from your original 180k investment. You're still out 150k between original down payment and funding the rehab and this doesn't even factor in closing costs from the two closings, holding costs, and your rehab inevitably being more than you think.

@Shuvrajit Mukherjee - if you stay within the 4-unit range and owner occupy, then yes you have options at 10% down, even 5% down assuming credit, DTI...etc. You will definitely not cashflow while living in one of the four units (especially with such high leverage), so live in one of the four units for a year and make sure it's positive when you move out in a year.

For commercial lending in Chicago at this exact moment, the most aggressive I've seen is A&N that has 20% down options for certain scenarios.