All Forum Posts by: Daniel Yoo

Bryan, I'm interested- email sent.

Darryl, for properties in the 2.5M range, what options would you recommend?

I think one of the negatives with HUD loans are the lengthy seasoning issues as well. Given the current credit/banking climate, I understand the underlying risk, but it would be great if there were lenders out there who could do cash out refi's on a 3-6 month seasoning as opposed to a year.

Dario, you've got my vote. Interesting that some would want to remove assets from their balance sheet...

Thanks Steve for the link.

I was thinking more along the lines of buying an office building and then leasing it back.

Bill, just curious to see how you resolved everything.

BP Nation, I heard about some lenders doing a sale/leaseback on commercial property. I heard that some people do this to tap into the equity in the property, others mentioned that it's mainly a tax liability decision, but I'm still a bit unclear about why someone would sell their property and then immediately lease it back.

Anybody have an idea of a scenario that this would fit under?

I was talking with another colleague about a real estate project returning 30% on his money within 6 months. He brought up a point that for him lending his money to the project and getting 30% on his money could be considered predatory lending because of the high rate.

I countered that this he would be an investor, not a lender. His point of view was that because the house is being held as collateral on his money, that he's actually a lender and not an investor. Tomato, Tomatoe, Potato, Potatoe.

Thought this was an interesting point however and wanted to hear your thoughts on this.

Sorry to bring up an old topic, but I was hoping the OP could bring us an update. Thx.

Thanks Rich, I spoke with a handful of apartment owners and for the most part they didn't keep a reserve acct. They paid for the majority of capital expenditures when they bought the apartments (new a/c's too) with the philosophy of less headache with maintenance. I don't know how they've depreciated the capital expense.

I'll most likely do a 3-5% reserve account for this one (new roofs, chiller system, a/c's done last year).

I found that there isn't usually a reserve account on multifamily, although I've seen it more often in single family calculations.

Guess it's because apartment owners make enough money to pay for most capital expenses. Cha-ching.