All Forum Posts by: Yoni R.

You’re putting in $5,100
Your gross rent is $1,650
If you take out 10% for Property Manager and also remove 5% for Vacancy (2 months every 3 years) then you're left with about $27.50 per month, which sounds really ugly but when you look at COC you're actually getting 6.5% which is pretty typical to what I have seen in this market with 30year loans.

At a purchase price of $150,000 and gross rent of $1,600 I think the property would work for most at a 30 year loan so I think it comes down to preference and comfort. I know many investors who will give up cash flow at a 15yr mortgage so that they get 15 years of free and clear properties while other investors are cash flowing $100/door.

You will always get more cash flow in a 30yr loan so I don’t think they can be compared to 15yr mortgages equally. Just think it’s two different strategies for different breed of investors and you need to identify which best suits you. Hope I provided some insight.

Happy Investing !

Great! Thanks for the numbers breakdown. That's what I figured too. There will be nothing left but it will be enough to take care of everything needed in the next 15 years. I currently can't get a 30 year loan so it's not relevant anyway and I prefer a 15 to get it over with asap.

Do you think the loan sounds good if this is my strategy? Can you think of any other options for me?

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Originally posted by @Russell Brazil:

Originally posted by @Andrew Johnson:

@Yoni R. How many other lenders have you called? Since you're in an LLC you're not going to get the good ol' 30 year fixed rate mortgage but I would have thought someone would have offered a 20 or 25 amortization schedule instead of 15. That said, I've never looked at a commercial loan that small before so it's something I haven't dealt with. Since you do have it in an LLC have you talked to regional banks in the area? I don't think there's much wrong with the rate, you'll be stuck with stuff in an escrow account, etc. but it's the amortization table that's going to kill you.

That said, you'll never get *actual* cash-flow on $275 per month. That will get eaten up with vacancy, break/fix repairs, eventual cap-ex, etc. It's the nature of the beast. But if you can ride it out you should have something viable at the end of 15 years. Alternatively, if it's really worth $210K you could always sell it for $210K. You'll eat some realtor fees and closing costs but you should still clear, what, $40K?

You are right about the LLC problem...Quicken is just incompentent and doesnt realize they cant do the loan yet. Hes going to end up going 3 weeks in, pay for the appraisal then the loan is going to get denied towards the end.

I really hope you are wrong but you may very well be right. Alot of lenders said they couldn't do it and all of a sudden Quicken said they could.

0 Votes

Originally posted by @Andrew Johnson:

I spoke with 4 lenders so far. Two of them said that I can't do delayed financing, One said he only does portfolio loans for llc's over 5 doors and Quicken Loans offered me the above. I haven't talked to regional banks in the area. Do you think this is an option? I don't really care about the cash flow I just don't want to have to bring money from "home". I want whatever cash flow there is to cover the expenses in the long run...

I could sell it and take home some cash but I don't need the money now. I prefer to cash out right now with financing and go buy another property. BRRR until I have a whole bunch of houses. I'm only currently at 6... I want the money later when I don't feel like working anymore :-)

1 Vote

Originally posted by @Joe Villeneuve:

No. Cash Flow too low with financing. It's a dog. Can you get a 30 year loan instead? Take $165 out for PM and it's an ugly dog.

Thanks for the input. He will only offer a 15 year loan... I currently manage on my own but yes you are absolutely right if a few years from now I want to put in a PM it will leave very little. But, this is currently the best offer that I have received.

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I need all the opinions I can get on this one before I make a decision. I purchased a SFH 2 months ago for $150,000. After going back and forth with Quicken Loans for "delayed financing" I just got a call from the agent and he offered me the following for my SFH which is registered under an LLC.

15 year loan

$138,700 is the loan.

$6,700 closing costs (which is factored into the loan) for a total of $145,400.

Interest on the loan is %4.875

Upfront costs are only $500 appraisal fee.

$3,000 in escrow for taxes and home insurance.

Monthly payment will be $1,375 which includes taxes and insurance figured in.

The monthly rent is $1,650 so that will leave me a cash flow of $275.

To remind everybody this is a SFH that I purchased 2 months ago and should be appraised at around $210,000. The house is in an LLC.

What do you think? Does it sound good? Should I go for it? Is there anything I should ask? Am I missing anything?

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I also forgot to mention that I had purchased the house for $150,000 so I will be getting almost all of my money out ($138,700).

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I need all the opinions I can get on this one before I make a decision. After going back and forth with Quicken Loans I just got a call from the agent and he offered me the following for my SFR which is registered under an LLC:

15 year loan

$138,700 is the loan.

$6,700 closing costs (which is factored into the loan) for a total of $145,400.

Interest on the loan is %4.875

Upfront costs are only $500 appraisal fee.

$3,000 in escrow for taxes and home insurance.

Monthly payment will be $1,375 which includes taxes and insurance figured in.

The monthly rent is $1,650 so that will leave a cash flow of $275.

To remind everybody this is a SFR that I purchased 2 months ago and should be appraised at around $210,000. The house is in an LLC.

What do you think? Does it sound good? Should I go for it? Is there anything I should ask? Am I missing anything?

0 Votes

Originally posted by @Fahim Ahmad:

Recently refinanced on two purchases simultaneously, one before the 6 months and one after.

The purchase outside of the six month window was 70 % of the appraised value.

The purchase inside the six was 70% of the purchase price. Also - if any portion of the purchase was with borrowed money (ie. HELOC), that portion goes directly back into your loan,heloc, whatever it was.

Hi Fahim,

Can you send me a pm with the contact details for the lender? It would be appreciated Thanks!

0 Votes

UPDATE: So I had a talk with QuickenLoans for “delayed financing”. The first conversation was that I can get 75% of the appraisal up to the purchase price amount. That was great news and I was ready to go with them.

To remind everyone of the details. I bought a property in cash two months ago for $150,000. The appraisal is around $210,000.

Spoke to them again today and they said that they need to do a credit check to give me the exact terms. OK no problem. I knew my score was above 700.

The agent from Quicken Loans got back to me after the credit score, which was 715, that the loan amount will only be around $100,000 which is only 50% of the appraisal. I told him that he had said 75% of the appraisal and he gave me some excuse about that he can’t sell the loan or get it approved.

Well he sold me on his service by telling me that there’s probably no problem getting the 75% of appraisal loan. It wasn’t even close. What a waste of time and a credit check. I can’t stand when people can’t stand behind their promises.

So, anybody out there that can make a promise and also follow through on it? I received emails from quite a few people and whoever can make good on their promises will be receiving a lot more business from me.

1 Vote

Originally posted by @Raymond J. Rodrigues:

@Yoni R. I know of a few portfolio lenders here in the Miami area that I can connect you with.

Great, Would love the connections. Thanks!

0 Votes

All Forum Posts by: Yoni R.

Yoni R. has started 23 posts and replied 98 times.

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?

Yoni R. has started 23 posts and replied 98 times.

Biggerpockets Logo Post: What do you think of this loan? Is it a good deal?

Biggerpockets Logo Post: What do you think of this loan? Is it a good deal?

Biggerpockets Logo Post: What do you think of this loan? Is it a good deal?

Biggerpockets Logo Post: What do you think of this loan? Is it a good deal?

Biggerpockets Logo Post: What do you think of this loan? Is it a good deal?

Biggerpockets Logo Post: Refinancing problems - Do I have to wait a year?

Biggerpockets Logo Post: Refinancing problems - Do I have to wait a year?

Biggerpockets Logo Post: Refinancing problems - Do I have to wait a year?

Biggerpockets Logo Post: Refinancing problems - Do I have to wait a year?

Biggerpockets Logo Post: Refinancing problems - Do I have to wait a year?

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: What do you think of this loan? Is it a good deal?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?

Post: Refinancing problems - Do I have to wait a year?