This is why I started my business sourcing capital to investors that do not qualify for traditional funding. We love it. Helping Real Investors get the Capital they need to buy these deals. Thanks CPA for what you do
In the "Deal Example", your expenses list does not include the loan payments and insurance payments while the property is being fixed up. Had you included those expense items, what would have been the profit?
In the end, it does affect profit. So if this operational expense and the insurance payments are included in the calculation, what is the profit in this example?
You need to subtract your 180k (assuming you borrowed or crowd-funded) from the cash-out refi of 217,500 leaving a 'profit' of 37,500 less all your loan closing costs (2%-5%) and then the conventional loan to 'exit' - OUCH!
It's a miracle that they would even include you as a principal in the deal with $0 down unless, of course, they thought that by having you personally sign on the loan, they could go after your personal assets if the deal went south.
Jose: that's the way it usually goes...if the LTV is high (between 80 and 100%), the terms are going to be garbage, and the interest will be through the ceiling...enough to where most investors wouldn't take it. Lenders have the philosophy that if they're going to take on THAT kind of risk, they're going to make it worth their while...in the form of points and a high rate of interest. And as Peter said, they'll have their eyes on seizure of your personal property if something goes sideways.
Would there a reason that in this scenario the bank wouldn’t fund the refi? And if so, would the back plan be to “hard money” refi, to take care of the original hard money?
hi Peter, I am planning on investing in commercial real estate in USA in the future do they allow non American to do that? will the banks give me loan? and what happens when my visa expires? Do you have an online course/training where I can enroll?
hi. I have several storage complex that I bought 2-3 years ago. I would like to cash out refi now that they are seasoned and 98% occupancy. Is there a company you would recommend today for commercial refi ? I am in Arizona.. I am also looking for help on how to get out of my hard money situation. can I reach out through your website?
i have many questions, its too risky. ... how can you close with only 270k and fix property with what money, and then qualify to refinance, with what credit. I wish i know the answer!
Maybe. Depends on your State and how many hard money loans that lender lends in that State. In some states, for example, if an entity does less than 5 loans per year, no licensing and therefore almost no regulation is involved.
Hey Peter how are u .. Thanks for ur advise .. Have done a few buy fix & flips from south Florida would like to do multi family apartment building.and would need ur assistance let me know how we can proceed... connect/ enroll... Thanks
Get help structuring your commercial deals with hard money loans by applying to my Protege Program: www.commercialpropertyadvisors.com/protege-program
This is why I started my business sourcing capital to investors that do not qualify for traditional funding. We love it. Helping Real Investors get the Capital they need to buy these deals. Thanks CPA for what you do
You are a terrific presenter. Very clear and energetic. You also make a point to face the camera, which is all too rare.
Its really positive and motivational video ... syberloans.com/
And no background music! Wonderful to listen to him.
thank you for sharing this valuable information. I'm starting in the commercial property business.
In the "Deal Example", your expenses list does not include the loan payments and insurance payments while the property is being fixed up. Had you included those expense items, what would have been the profit?
Mortgage is not considered an operational expense; it's considered "debt service"
In the end, it does affect profit. So if this operational expense and the insurance payments are included in the calculation, what is the profit in this example?
Great informative video. Thanks for your time.
I heard you can only Cash-out-refi after a 6-12month seasoning period. Is there a way around that?
You need to subtract your 180k (assuming you borrowed or crowd-funded) from the cash-out refi of 217,500 leaving a 'profit' of 37,500 less all your loan closing costs (2%-5%) and then the conventional loan to 'exit' - OUCH!
Hey Peter, I have been offered 100% financing but the terms were brutal including equity on the deal on top of a very high rate and points.
It's a miracle that they would even include you as a principal in the deal with $0 down unless, of course, they thought that by having you personally sign on the loan, they could go after your personal assets if the deal went south.
Jose: that's the way it usually goes...if the LTV is high (between 80 and 100%), the terms are going to be garbage, and the interest will be through the ceiling...enough to where most investors wouldn't take it. Lenders have the philosophy that if they're going to take on THAT kind of risk, they're going to make it worth their while...in the form of points and a high rate of interest. And as Peter said, they'll have their eyes on seizure of your personal property if something goes sideways.
Outstanding information. Thank you sir.
THANK YOU SIR MR.PERTER HARRIS FOR YOUR GREAT ADVICE TO LEARN HOW TO WALK AWAY FROM THE ENEMIES OF PROGRESS. GOD BLESS YOU SIR.
great information, never knew there hard money loans were available for apartment value add opportunities.
Would there a reason that in this scenario the bank wouldn’t fund the refi? And if so, would the back plan be to “hard money” refi, to take care of the original hard money?
thanks
Thank you keep up the good work
Thanks for the video.
Awesome video!
hi Peter, I am planning on investing in commercial real estate in USA in the future do they allow non American to do that? will the banks give me loan? and what happens when my visa expires? Do you have an online course/training where I can enroll?
Yes, non-Americans own a tremendous amount of American Commercial Real Estate, including many trophy properties like the Empire State Building.
very helpful
hi. I have several storage complex that I bought 2-3 years ago. I would like to cash out refi now that they are seasoned and 98% occupancy. Is there a company you would recommend today for commercial refi ? I am in Arizona.. I am also looking for help on how to get out of my hard money situation. can I reach out through your website?
i have many questions, its too risky.
... how can you close with only 270k and fix property with what money,
and then qualify to refinance, with what credit. I wish i know the answer!
Take this free video course: videocourse.commercialpropertyadvisors.com/p/commercial-real-estate-investing-for-beginners/
Thank
Are there any regulations on hard money? Like ability to repay etc.
Maybe. Depends on your State and how many hard money loans that lender lends in that State. In some states, for example, if an entity does less than 5 loans per year, no licensing and therefore almost no regulation is involved.
Hey Peter how are u ..
Thanks for ur advise ..
Have done a few buy fix & flips from south Florida would like to do multi family apartment building.and would need ur assistance let me know how we can proceed... connect/ enroll...
Thanks
Apply to my Protege Program here: www.commercialpropertyadvisors.com/protege-program
great video and lesson!! thank u....#matpreneur
Did I miss the link? What is it?
www.freedommentor.com/hard-money-locator
How can I join your programme I want to invest in commercial property
Apply here: www.commercialpropertyadvisors.com/protege-program
#goals
🙏