Posted by Blue Rabbit on July 13, 2007 at 11:00:09:
Two comments, two questions:
(1) The seven units (3 dups, 1 sfm) sit on two side-by-side parcels. Parking lot extends between both, drive splits down the middle. One parcel has 2 dups, the other 1 dup and 1 sfm.
(2) All are currently under one comm. mort.
Qustions:
(1) “Allows for releases” is not a phrase I am used to. What does this mean exactly?
(2) “…minimum of 5 properties together though.” means on one parcel or udner one loan?
If you want to take this offforum, my email is legit.
Posted by Blue Rabbit on July 12, 2007 at 13:08:50:
In the interest of saving time, Iâ??ll â??cut to the chaseâ??:
What I have:
(1) 3 duplexes and 1 single family home, currently under one commercial loan.
(2) The 7 units are on two tax-parcels, side-by-side, again, both parcels under one loan.
(3) Presently on a 3/1 ARM at 7.69% (20 year) and more than a year to go to first change.
(4) Orig loan was $266,000.
(5) Currently at $255,000.
(6) Property sale price in Nov 2005, $359,000.
(7) Exterior improvements, should appraise at $385,000.
(8) Credit Scar of 730+.
What I want:
(1) FIXED rate.
(2) 30 or 40 years.
(3) Rate at 8.5% or less.
(4) No cash-out.
Obstacles:
(1) Property is at break even per month.
(2) Cannot provide 2006 tax return until after September.
(3) Property deed is in a limited partnership, loan held personaly by me.
Posted by Blue Rabbit on July 12, 2007 at 19:49:23:
Ben,
Keeping more than 6 months of reserves has been a point of ours.
In discussing loans with some commercial loan brokers, stated income is the way to go for now. The rates are between 9 and 11% and that does not cut it for what we are after.
Anyhow, we have about 15 properties. 7 are under the loan we are trying to refi.
Posted by Ben Carmona on July 12, 2007 at 20:03:56:
I was thinking of a stated loan under conventional financing. As noted though, each property would have to have it’s own legal description.
Have you discussed the new commercial blanket loan for residential properties with anyone yet? It is a blanket commercial loan for residential properties. Up to 80% and it allows for releases. Rates under 9%.
You must have a minimum of 5 properties together though.