All Forum Posts by: Weina Shi

Right now I like a 10/20 or 10/25. The market is fairly high and interest rates are low. If the market crashed and you only have 3 years or less left on your fixed rate, you could be in a bad spot. Same goes with interest rates. If they go way up and you need to reset, then you will be stuck. 5 years ago, I was all for a 3 or 5 year fixed, but now everything I do is conservative.

Agree 3 or 5 year may be too short. Having a little cushion is a good thing.

1 Vote

Originally posted by @Matt H.:

We Refi every 3-5 years, so we typically get 3/30 or 5/30. That fits our strategy. I personally would only take the 7 if the yield curve flattens further and they basically force me to. That’s what’s happening with the 5 year vis a vis the 3 year right now...

Also not sure about your loan but our 7/30 has a massive pre pay which i don’t want.

For this loan, there is no prepayment penalty if refi with the same bank. 7 and 10 year term difference is 40bps in terms of rates.

0 Votes

I think 7/25 is the best of the four. Do other fellow investors keep a loan for 10 years??

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Which one is the best choice out of the four? From cash flow standpoint, 7/25 and 10/25 are the best. Interest rate on the 7/20 is the lowest. And the 10/20 and 10/25 offers the least risk for interest rate increase. How often do you refinance your commercial loan? My thoughts are that typically within 7 years you will want to refinance to cash out the equity to invest in another property so having a 10 year maturity is not useful. Any thoughts?

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Thank you for the input, Chris.

Originally posted by @Chris Mentch:

I would do a final walkthrough. In case tenants trashed it or some other issue, you’ll know about it and can go back to the sellers. Hopefully, no issues!

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Hi BP,

I have two multifamily deals (one at $3.3MM in MA) and a smaller one but more unit count in MD. Is final walk through typically skipped because tenants occupy the units? Or is it done as typically done in residential purchases?

Thanks!

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Originally posted by @Andrew Michael:

@Weina Shi

Hi there, just curious where this multi is located and if it is rent ready or will need to undergo renovations?

It is in Baltimore city, no major reno needed.

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Hi all,

I am under contract to purchase 5+ unit multifamily in Maryland. Does anyone have banks you recommend that offers best rates and terms (and ideally no origination fees)? Thank you.

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Originally posted by @Alpesh Parmar:

I would put them both under one LLC and then get a commercial loan. Once you get your first commercial loan, it becomes easier to get next loan. Good Luck!

Is it worth it at higher interest cost? Does this help me get me approved as a Fannie-approved sponsor in the future? Thanks.

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I am under contract to purchase 7-units multifamily (3-unit + 4-unit on parcels next to each other). I can either do one commercial loan at 4.5%, 5 year fixed rate, the typical penalty 54321 or two residential loans at 4.375% (or lower) for 30-year fixed with no prepay penalty. I would like to start building a real estate portfolio and have that portfolio grow. If I take the two residential loan, would it affect my ability to borrow on the next commercial loan (which is based on property on my net worth)?

Would the lender allow me to put both properties under the same LLC? One attorney recommends realty trust rather than LLC. Which one is better?

0 Votes

All Forum Posts by: Weina Shi

Weina Shi has started 28 posts and replied 83 times.

Post: Commercial Loan: 7/20, 7/25, 10/20, 10/25

Post: Commercial Loan: 7/20, 7/25, 10/20, 10/25

Post: Commercial Loan: 7/20, 7/25, 10/20, 10/25

Post: Commercial Loan: 7/20, 7/25, 10/20, 10/25

Post: Do You Need a Final Walk Through for Multifamily?

Post: Do You Need a Final Walk Through for Multifamily?

Post: Maryland Multifamily Lending - Bank Recommendation?

Post: Maryland Multifamily Lending - Bank Recommendation?

Post: Commercial Loan vs Residential Loan on a Packaged Deal

Post: Commercial Loan vs Residential Loan on a Packaged Deal