All Forum Posts by: Account Closed

Anyone have tips on what Asset Management companies are looking for in managers to run multiple apartment complexes? 

I'm thinking about applying to several AM positions, but I'm concerned that with the only professional experience I have is managing my own investment properties and/or managing property managers, I don't have the resume strength to pull it off. 

Thanks in advance. 

I can recommend my Detroit property manager if you like. Used her for 5yrs now. Send me a colleague request and I'll send you her info. 

@Jeff McRitchie you have several options. 

Cash out refis in your own name and portfolio loans have already been discussed. My only addition is many banks these days won't lend if your goal is to re-invest the equity into additional real estate. 

Commercial lenders might consider lumping all residential properties into a single commercial loan over $500k, but this is very bank specific. Try your local banks b/c most well known brands won't touch them in my experience. 

You also have asset lenders who will lend based on the asset's metrics versus your personal metrics. These carry higher rates, but it's another viable strategy. 

For the East Tennessee landlords, 

I'm about to buy a nice off-market duplex Johnson City, TN, but both units are tenant occupied. I want to owner occupy one unit. 

Not knowing TN law that well (yet), how could I best go about this? 

Am I forced to let one of their leases expire? Can I give one a free months rent in exchange for moving out in 30 days? Can I evict one of them since ownership is changing hands? 

Path of least resistance is preferred. 

You can try an asset lender. They lend based on the asset's cash flow instead of your own. 

@Ryan King

The trick is to market yourself to the seller as someone who is trustworthy, will make payments on time every time and take care of their property. 

If you have a good credit score, show them. Take a credit card statement or something legit showing your scores.

If you have good references from past clients, get it in writing. Show them closing documents and offer up that past client's phone number (if they agree to be a reference). 

Lastly, and perhaps most importantly, offer a substantial down payment. I'm not saying it has to be 20% down, but it definitely helps. 

Explain to them that if the home is selling for 200k, they'll make more than $200k over the lifetime of the note b/c of interest earned. They have to claim it on their taxes as interest income, but still, in a low interest environment, many boomers wanting to retire or downsize can find owner financing a solid investment since they're making several times what they would on a similar cash deposit in a bank somewhere. 

@Stephen Hundley is the commercial loan paid off within 5yrs or do you get a new 5/30 with same bank? 

@Chris McCall 

I've ran into same issue for several months. Beginning to lose hope in a blanket loan, umbrella loan, all encompassing loan, whatever you want to call it, with a rate anywhere close to prime. 

Asset lenders will do them, but they want mid 6s to high 7s depending on the term length. Not really too gung ho about paying that since I'm a 800-ish credit score person. 

The one consolation I can say that I have found is this: if you're willing to execute one cash out refi per property in your own name and hold them on your credit report, and you have good credit with sound income, many generic lenders (Citi, BofA, local credit unions, etc) will execute cash out refis in the mid 4%s. Check around for fees b/c some want $5000/closing and others want $1500/closing, so multiple quotes is a must have in this scenario. 

Most lenders will tell you that you're capped at 4 conventional mortgages per person, but that's where the asset lenders kick in. I know a few national asset lenders if you need their contact info. Just DM me and I can send their info. 

You can do better than hard money if you have investor experience.

Several investor friendly lending outfits out there right now but you won't pay prime. It's usually in the mid 6% to high 7% range. I've been trying to find prime rate investor friendly lenders for 6 months with no luck. 

DM me and I'll send you a contact or two. Don't want to post their email addy in forum b/c spammers. 

What is a good rate for an asset loan, portfolio loan, etc? 

I'm well aware that we investors will rarely/never see loan rates as low as owner occupants who qualify for prime, but for those of us 800+ credit score, a solid income sheet and rentals that pay 2x or more than the monthly loan servicing cost, what's the best rate we investors should expect?