All Forum Posts by: W. Alex Benitez

Great topic and feedback.  I too am in a similar position where am considering starting a PM business.  I am currently managing my own properties and considering getting out of the corporate world. 

Sounds like a very educational opportunity.  I will reach out to you.

@Rich Zellmer I echo Maureen, shop around.  I have first hand experience in a property that was affected by Sandy.  The property took water in the first floor and sits across the water. 

The previous owner was paying 2500 for flood insurance and upon shopping around am now paying $595 a year in an AE zone.  Just for the record, I went with AAA but am also a member.

Thank you all for the great feedback.

I was pursuing the option of performing a quit claim deed and transferring over to an LLC. However, In speaking to my attorney, he stated that it is required that the lender is informed and in agreement or else they could call the loan. I did reach out to my lender who prohibited me from moving forward which is why I am pursuing the commercial loan option.

It sounds like refinancing to commercial loan is the direction to pursue. The plan in mind is to remodel the rental unit and hope it appraises higher, then refinance to a commercial loan under an LLC.

Hello guys and girls…I need help with refinancing and would like your thoughts and comments.

The property I am considering refinancing is a 4-plex purchased back in April of 2016.  I understand that in order to refinance, the season period is 1 year so am trying to be proactive and preparing myself. I used conventional lending with a balance of 184k remaining on the note.The property and comps in the area for 4-plexes is around 310K.

Since the purchase I have rehabbed 1 unit and in the process of rehabbing another unit in May.  My goal is to rehab the upcoming unit, get it rented then refinance and leverage for other opportunities.

Question: Can I refinance a conventional load over to a commercial load and what are the benefits? Would a 4-plex qualify for a commercial loan or is it only 5+?

Ideally, would like to refinance to a commercial load and create an LLC for asset protection.

Thoughts and comments appreciated…

@Eric Waterman I am particularly a buy and hold investor for multi-family units but from time to time come across opportunities that do not fit my criteria.  

I invite you to message me offline and provide me your criteria...

@Yvette Chung  I did not see it mentioned in the thread but also take into consideration monthly operational expenses.  They should also be included in your overall monthly analysis (Mortgage, Taxes, Operational expense, vacancy rate, etc..)

In 2016, I added another 4-unit building to my portfolio and feel it is time to look for an investor knowledgeable CPA.  Someone familiar with NJ and tax codes for us investors.

Any assistance would be greatly appreciated.  

@Evan R. the ones I attends are as follow:

Meetup

1. Jersey Shore Flippers and Funders Meetup – which meets up monthly (next one on 11/3) at the restaurant Skratch in Asbury Park
2. Central Jersey & Monmouth County Real Estate Investors – coordinated by @Mark Scarola where the meeting is currently at Perkings in Red Bank
3. RING Philly (Real Estate Investor Networking Group – in Manayunk Brewing Company which has some good guest speakers and content

SJREI

• 1.Princeton and Middlesex chapters (depends on topic), I noticed a Trenton chapter opened up so may venture there one night

There are also numerous other meetup groups which I plan to attend which is all based upon schedule.

@Mark Scarola

Hi Al,

First and foremost, thank you for serving for our country.  Without people lime you, we wouldn't be in potions to live the American dream....so thank you.

Your goal is definitely attainable and I highly recommend going to local REI meetings. I have met so many like minded individuals with similar goals which only helps motivate oneself. In addition, gained knowledge from those presenting on topics related to rei. So go out there, ask questions and I hope our paths cross in the near future.

God Bless