All Forum Posts by: Tony Thomas

I'd agree with the others on a DSCR loan. Maybe you can get 85%LTV. Maybe you know someone who could loan you the down payment privately and pay them back?

Does anyone have experience evicting tenants when the property is held by an LLC? We came across an issue where we were forced to use a lawyer to go through the process of an eviction because the property was listed under an LLC. This added cost over filing it ourselves. Is there a work around to this?

Does anyone have experience evicting tenants when the property is held by an LLC? We came across an issue where we were forced to use a lawyer to go through the process of an eviction because the property was listed under an LLC. This added cost over filing it ourselves. Is there a work around to this?

Welcome Douglas!

I'm looking for details around the 1031 Exchange. I know we have 45 days to identify a property, then 180 days to close on it.

Do I have to do anything before selling my property to exercise the 1031 Exchange?  What if we can't close on that property for some reason and need to find another one? Can we identify more than one property and close on at least one of those?

Have you considered out of state investing?  You may find better value or cash flow.  

Quote from @Jay Hurst:

Quote from @Tony Thomas:

Any best practices around buying down points?

I'm considering a cash out refi. 70% LTV on a property that will likely appraise around $450K. I can buy down the interest rate. It would cost me $13,835 to get down to 6%, which would give the best value over the course of the loan.

Why wouldn’t I buy down all the way to a 6% interest rate? If not down to 6%, where would you buy down to?

 @Tony Thomas  Points, discount or buy down are all the same thing, and that thing is simply pre-paid interest. You are giving the end buyer of the loan (not the broker) the interest upfront instead of over time therefore you get a lower rate. And most folks want to "roll in" this cost into the loan. Assuming you do that here you are financing that pre-paid interest over the 30 year period. If you just take the 13,835 financed at 6% you are adding 83 dollars a month. so a double whammy.

Now, lets consider if rates drop to 5.5% in 24 months (not a prediction just a what if) and you could have refinanced at a much lower costs then the above scenario in what you paid in pre-paid and additional interest. on the other hand, if rates for your same scenario after your 5 year payback period is 9, then you will have an asset with a much lower then current market rent.  So, to answer your question there is certainly a case  for both sides and the correct answer is really unknowable. But, taking the lowest rate at any cost is not simply a no brainer do it every time. 

But, I will say, if the pricing above is for a conventional loan and you have good credit you should be able to better in pricing. 

 Thanks Jay.  Love the feedback!

 Thanks Ty!

Hello all,

I'm returning to the BP Community with a goal of learning, helping and growing!  Looking forward to connecting!

Any best practices around buying down points?

I'm considering a cash out refi. 70% LTV on a property that will likely appraise around $450K. I can buy down the interest rate. It would cost me $13,835 to get down to 6%, which would give the best value over the course of the loan.

Why wouldn’t I buy down all the way to a 6% interest rate? If not down to 6%, where would you buy down to?