Best multi-family mortgage rates right now?

[Thomas Beyer]

Hi,

But you sold Most. so you still don't believe in selling but had to sell for different reasons.

This too I do not understand. With a good appraiser who understands our business you are often able through tax free re-fi to take out at least the same $ amount as selling.
Thanks

Did you read my book ? I talk about the many mistakes I made .. and that answers some of your questions why to sell in the "clean up your messes" section of the book !

It is amazing how many nights it takes to be an overnight success.

 

[Cory Sperle]

Disagree. For some reason folks will pay much more for an apartment building than you could ever get out of a refinance. Generally the max you can get is 75% of banks value MINUS all the fees involved. The only way to access the remaining 25% is to sell.

 

[RE123RE]

folks will pay much more for an apartment building than you could ever get out of a refinance. Generally the max you can get is 75% of banks value MINUS all the fees involved. The only way to access the remaining 25% is to sell.

Hi,
An average folk - maybe.
You - I hope not.
That's why I mentioned 'with a good appraiser who understands our business'.
Hint: if bank A sent an appraiser you do not like, there is always bank B.
Lets not forget value appreciation. Say a building went up 35% in value in 3 or 5 years.
0.75 LTV x 1.35 current value/purchase price ---> Your initial 25% out.

MINUS all the fees involved. The only way to access the remaining 25% is to sell.

Are you really comparing the fees involved with refinancing an apartment building to the fees+taxes when selling? Hope not as the last is much higher.
Thanks

 

[Cory Sperle]

With MF there is no bank "A" or "B" and the value is depended almost entirely on the income, and the list of apraisers the bank will accept is very small. Yes with 35% or so lift techically yes your equity comes out in a refinance, but after 5 years investors generally want out and go on to do their own thing as Thomas mentioned, so there are many reasons to sell, personal circumstances, investor priorities, buying bigger blocks, deferred maintainance issues, etc. etc.

Not so black and white with a refinance. With a sale you have your legal costs, and taxes of course. With a refinance that cash you pulled out is still taxable, just deferred. Plus you will require a new mortgage application that includes fees to the lender/broker, a new apraisal, phase 1, engineering report, your legal, and the lenders legal so not uncommon to chalk up $30,000 or more in fees.

 

[RE123RE]

With MF there is no bank "A" or "B" and the value is depended almost entirely on the income,

Hi,
Not true but I am sorry this has been your experience. Maybe in a dream world where everything is done by the book.
In reality - meet Appraiser A in the morning and B in the afternoon, and their appraised values will rarely be the same.
You're dealing will people where it depends on many factors some not even related to the building, like how much they like you and if his wife/her husband.. the previous night (Ha hope translated joke properly).

not uncommon to chalk up $30,000 or more in fees.

Not true. Refinancing is usually much less than 30K and selling is more (you also pay RE agent fee when selling, and you do not when refiing)
Thanks

 

[RE123RE]

Did you read my book ?

Hi,
Yes most of it.
Thanks

 

[Cory Sperle]

Does anyone have a contact for TD commercial mortgages?

 

[Thomas Beyer]

We used to. Very unresponsive even for 8 digit mortgage.

Use a mortgage broker

 

[RE123RE]

Very unresponsive even for 8 digit mortgage.

Hi,
How do you explain this?
A new trend in the bank's approach to apartment buildings investing and its risks?
Or just a banker or specific bank branch not understanding our business?
Thanks

 

[Thomas Beyer]

Lenders change criteria all the time. We ended up with a LifeCo at 2.36% at 70% LTV.

Hence: use a mortgage broker to navigate the ever shifting landscape.

 

[RE123RE]

Lenders change criteria all the time. We ended up with a LifeCo at 2.36% at 70% LTV.

Hence: use a mortgage broker to navigate the ever shifting landscape.

Hi,
Okay.
Thanks

 

[AnnaDanishek]

What did you use for rents?

 

[Thomas Beyer]

What did you use for rents?

Actuals, always actuals.