Since the Exit Strategy is to hold long term I would choose C - DSCR, 30-years fixed. The other two are due in 7 years.

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@ignaciosanchezofficial

Жыл бұрын

Link isn’t working. Says it’s invalid?

@missinlinkz4u

Жыл бұрын

B is investor friendly

@CommercialPropertyAdvisors

Жыл бұрын

@@ignaciosanchezofficial There was a typo in the URL. It has been fixed.

Option C

Great video Peter as always. I choose option B!

I would choose option B. It provides more flexibility with the interest only for the first couple of years, which allows the investor to maximize the rent and stabilize the property.

B, Fannie Mae. best rate, assumable ( good since there is an investor) and it's good for long term

Perfect video for what I'm going through!! Thanks! I love always learning more about these programs

Hi Peter, thanks again for a super informative, information packed video, with a bonus take action challenge, love it! For the deal that you gave us, I’d have to say Fanny Mae all the way. 1.35m sufficiently exceeds the minimum loan requirement, increasing likelihood of loan approval, especially with the experienced investor in the syndication, Fanny Mae offers the lowest interest rate, the motivation of purchase is for long term investment and finally if anything changes or there’s a need to back out, loan is assumable and is non recourse so no need to personally guarantee.

Option B is better, for long term

B Much better terms Nonrecourse Better ROI because of the interest only giving room to make improvements and force appreciation for better investor returns. According to the purchase price you may not have enough money for options requiring 25% down or more because you have to figure in closing costs as well. ..you also mentioned, it’s a good neighborhood which probably means the market cap rate is relatively low, in which case options A and C may not meet DSCR requirements… unless the deal cap is much higher than the market cap… Thank you!!

I choose B

(Quick Question) So DSCR is recourse? I thought it was nonrecourse because they ONLY look at the property!

Based on your statements. Fannie Mae would be the best loan for the lowest interest rate. B. I would try to create a unique deal. So I would automatically do something extra. You didn't say anything about 1031 option. Could you try to purchase outright and then get a low interest secured loan that you have leverage. It might create better options but might open more opportunities and thus you could create more than one exit strategy. Does this make any sense? Because if you raise the money refinance and pay back investors you essentially have the lowest rate on the market. You gave examples of: 1. 7% 2. 6% 3. 8.5 Refinance is probably 3% or 4%. I think the answer you were looking for was b. With investors you have experience and generally seek best terms. Please rate my response

How is the DSCR loan recourse if they don’t look at your personal income?

@CommercialPropertyAdvisors

Жыл бұрын

They look at your Credit Score.

Option B is more investor friendly

@andrewcohen8627

Жыл бұрын

Option B is the most favorable for investor.

I’ll choose B for the loan terms.

Would I choose the DSCR LOAN? BECOZ IT DIESN REQUIRE EXPERIENCE AND YOU CAN KEEP ME FIR LONG TERM THEN UOU HSVE THE STEP DWN PENALTY TO CHOOSE FROM AND PERSON GUARANTEED IS THIS RIGHT?

Option b if both parties have good credit and income verification. Option a if would probably work best.

Option B

A local bank 🏦

Option B is the best option

I would Choose B: Fannie Mae.

Option B.

Option B for the loan

Great information. I’d choose A local bank

I need help on understanding balloon payment specifics on 30 yr fixed. Please and thank you

@gnahthe

Жыл бұрын

From my understanding, the monthly payment is calculated as if you were going to pay it off over 30 years, but in actuality, at the end of year seven, the loan will balloon and the balance will be due in full.

@alexl932

11 ай бұрын

​@@gnahthe Many people ask where can you have balloon payment suddenly at yr 7 or 5 when it's due? 1) It means the bankers force u refi at today's higher rate while Residential (4 or fewer units) loans are MUCH BETTER with 30 yrs fixed rate. Why everybody keeps tell u buy apartment or more units are better while the LAWS (IRS TAX code) and even bankers mortgage rules are AGAINST commercial loan. Here are the points: 1) as stated above, bankers are suckers that they only give commercial (apart) loan 5-7 yrs short-term-teasing-u mortgage at 30yrs almost same rate at 7% but suddenly at yr 5-7, u getta pay FULL balloon or force u REFI every 5-7 yrs FOREVER while residential loan u can sleep easy with 30 yrs fixed mortgage never has to worry every 5 yrs refi so APT more units are Not Good=they lie to u/stupefy u? 2) IRS TAX LAW AGAINST REAL ESTATE investors: apart. building takes 39 YRS TOO SLOW DEPRECIATIONmeans IRS TAX LAW PUNISHES R.E. investor b/c all other business takes 1 yr or 5 yrs 100% DEPRECIATION FAST so u pay less tax (offset other income); and Residential (1-4 units) is better, it takes 26.5 yrs SLIGHTLY FASTER DEPRECIATION than 39yrs. So with 1) and 2) above, it proves buy RESIDENTIAL units are better than apartment commercial buildings, the banker rules and IRS TAX LAW SAID SO. Remember: maybe u should pay me to spend time making a video educate all: a) NOT ALL R.E. is 100% deprecitable, the land value part cannot, and rest is structure improvement, usually 40% is land value so you loss 40% of total R.E. value UNABLE TO DEPRECIATE right out of the gate when u invest in R.E. = so IRS TAX LAW PUNISHES U INVEST IN R.E.=so do not listen to too many R.E. gurus lie to u said R.E. is the best b/c WARREN BUFFETT THE SMARTEST investor hates R.E. or BE LANDLORDING business=deal withppl is hard & no fun=IRS TAX LAW SAID SO AND PUNISHES R.E. INVESTORS! The rest 60% is STRUCTURE IMPROVEMENT which it's depreciatable but still takes TOO SLOW: 26.5yrs for residential or 39 yrs for commercial; that means IRS TAX LAW PUNISHES R.E. INVESTOR AGAIN B/C SLOW DEPRECIATION MEANS U CANNOT OFFSET MORE INCOME SO U GETTA PAY MORE TAX, while all other business take fast 5 yrs or even 1 yr (when u buy a heavy car for business use it takes 1 yr 100% write off). People said u need to subscribe to my channel, let engineer, investor and business man educate u when he has more time lol.

Going with option B

Hi, I’m looking to grow my portfolio with a multi family property with 5 - 8 units. Do you think Fannie Mae would be a good route for me to take since I already have several single family rentals and one duplex? I’m looking for a lower interest rate loan for a longer term.

Fannie Mae loan would be best as it’s assumable and low int rate and non recourse

Awesome video thanks.

Great video!!! Answer is b

Fannie Mae

The DSCR loan would be more attractive if it were non-recourse.

Fannie Mae Loan

You" Sir" Are Ingredibly SMART!"

Thx you for your video👌🏻

B

C maybe

All 3 would be deal and buyer specific.

What's the real answer? I'm still trying to get a grasp of this.

@CommercialPropertyAdvisors

7 күн бұрын

It depends :)

@PatrickParkerMusic

7 күн бұрын

@@CommercialPropertyAdvisors Would fannie mae be better because you don't have a balloon?

@CommercialPropertyAdvisors

6 күн бұрын

@@PatrickParkerMusic That's a HUGE advantage of Fannie Mae; but sometimes their underwriting process and requirements can be a pain in the butt. Recall that Fannie Mae is government and as you have probably experienced in your own life, dealing with government can be a much bigger hassle than dealing with a private party. When there is ample time to close and you can meet the Fannie Mae requirements, it's oftentimes the better option.

@PatrickParkerMusic

6 күн бұрын

@@CommercialPropertyAdvisors Extremely helpful information thank you

B. This video was very helpful

Doesn't require experience

b

And it's not assumable and it is a fixed rate

B:)

expensive money

Option B

Option B.

B

b

Option B

Option B

B

B

B

B

B

B

B

B

B

B

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B

b