All Forum Posts by: Todd Nurnberger

@Corey Dickens I think @Chase Louderback was referring to going to a community bank/Credit Union and getting a commercial loan that the bank would hold and service themselves.  Where residential loans that conform to "Fanny/Freddy" underwriting guidelines are frequently packages and resold, or turned into securities, portfolio loans are typically held by the issuing bank.

Your rate will be a bit higher than residential, you will have a shorter term 5-20 years and in most cases the loans will be adjustable rate and not fully amortizing  (have a balloon payment).  But the terms are really set by the individual bank and are negotiable to some extent.

If you have a good rental history and can form a relationship with a local bank it could work out well.  But if this is your first time at buying and holding rentals it may be a bit harder to get funded.

Please post and let us know how this deal pans out.

@Stephen D. Another strategy is to call on rental listings or "for rent" signs for small multi family properties, and see if they would consider selling.  Like the other ideas mentioned above, it can be low percentage game, but if you make enough calls you may find a land lord that has had a bad week and is willing to shift the headaches over to you for several years of owner finance payments, and avoid the big capital gains hit.  They also have the security to know that they "could" take the property back and operate it if you defaulted, since the have operated it to this point.

@Ben Burnap  Ben your frustration is coming through loud and clear in your post, and I feel for your situation.  I think you are on the right track with asking your self how can I get this deal done rather than simply giving up, and as @Tchaka Owen mentioned a family member could partner with you on the deal.

One thing to remember is that this is a competitive market for investors in most areas and good deals are a little harder to find than a few years ago. 

You might want to try sharing the deal (you have under contract) with your local REIA members, and if it is really a "good" deal someone may have a partnership structure that could help you take down the deal.

If the deal is only "OK" and you may be trying to push the numbers a bit, the underwriting guidelines may be telling you the deal is tight.  Once again feedback from your local rental investors should help you vet the deal and find a path forward.

Please let us know how this turns out for you!

@Amir Estimo. I second Joe Fairless and in particular his “Best Ever apartment syndication book” . This book is perfect if you want to syndicate larger deals and is full of actionable content and literally a step by step guild to do what Joe did with large value-add apartments.

If you are looking to get started with smaller multi family deals, “How to make Big money in small apartments” by Lance Edwards is a great resource and refers you back to many online resources.

@Patrick Ng  Hi Patrick, it will not impact your current situation but I heard a great suggestion at a lunch with a group of real estate investors today.  One buy and hold investor who self manages said everyone who has rentals should go to the court and watch the eviction proceedings.  Just seeing how things work can give you more piece of mind about the process.  

Good luck with your appeal thank you for sharing what must be a frustrating situation and let us know how it turns out.

@Andrew Beauchemin Do you know if there has been any change to the minimum loan size?  I did not see that on the site only the increase on the max loan amount?

@Chase Louderback  I would echo what @Seth Ferguson reported based on the Value Add deals we are seeing and investing in 70/30 and 8% preferred, with or without an IRR hurdle moving to 50/50 split.

@Audrey Oney  It could be as simple as posting a request for "looking for recommendations for commercial  financing broker" in your market.  I would think you would get at lease a few names to start with, and each broker should offer a number of financing options.  A trip down to the local community bank could also be an option.

Another consideration is recourse non-recourse loan, with limited multifamily experience and a smaller deal it may be harder to get non-recourse financing.

Please let us know what you find and if you end up getting the deal.

@Andrew Everingham Another option that we used to get started was to get a HELOC for the equity in our home. We did this as a way to be "cash" buyer and access deals in the competitive San Antonio market. Then you can do a conventional "cash out" Refi or use the delayed financing provision to avoid the "seasoning" required for a "cash out" refi. This is basically the BRRRR process that hopefully allows you to get you HELOC funds back and gives you "cash" for your next deal. This only works if you have sufficient equity in your home to pull a HELOC big enough to invest with, but it can be an option that works well for some investors.

@Kevin Polite we also charge a refundable $300 per deposit with the thought it is in everyone’s best interest to keep the pet impact to a minimum. I think this makes us more competitive in attracting quality tenants. We also currently have dogs in 5 of 6 houses, and knock on wood get few calls and our 6 month inspections have not indicated any pet issues. We also exclude the aggressive breeds that are listed by our insurance carrier and any pet that has a bite history.