Things change: your perspective, your appetite for risk, and even your investment criteria. Sometimes the best thing you can do is move forward, and that can mean selling an investment property. When this time comes, you will have to pay off any existing liens before transferring title. For many investors, the biggest lien is their…
Many apartment investors don’t like debt, so rather than refinancing, they would prefer to pay off their loans. Why get a new loan when you’d prefer to have no loan? If that describes you, you may want to reconsider. Used wisely, debt is a powerful tool that can help you reach your short- and long-term…
As a lender, I underwrote numerous properties. The easiest loans are permanent mortgages on stabilized multifamily properties especially if it is a low leverage request (loan-to-value no greater than 60% and debt service coverage of at least 1.30x). If your loan request looks like that, lenders will be eager to lend on your property. This…
Reviewing your portfolio of investment properties should provide a sense of satisfaction. Thanks to your decades of hard work, your portfolio generates cash and operates like a well-oiled machine. But would this continue without you? Is your spouse or successor up to speed on how your portfolio operates? Do they know the addresses for each…
Reviewing your portfolio of investment properties should provide a sense of satisfaction. Thanks to your decades of hard work, your portfolio generates cash and operates like a well-oiled machine. But would this continue without you? Is your spouse or successor up to speed on how your portfolio operates? Do they know the addresses for each…
Should you promise to stand behind the loan on your property? Your gut reaction might be “I always pay my debts.” I’m right there with you. However, no one wants misfortune at one property to sink their whole balance sheet. As such, many investors opt for non-recourse debt to protect their net worth. Let’s review…
Should you write-off almost anything? Maybe not, if you want to refinance your property and get access to your hard-earned equity. Consider that for every $1 reduction in reportable income, you could decrease your potential loan amount by $11-13. You Mean I Should Pay More in Taxes? It depends on your appetite for debt. If…
When it comes time to refinance your property, you want an easy process that gets you the best pricing. If you’re not prepared, it could hurt you with a higher interest rate, lower loan proceeds and an agonizing experience. Below are the top five issues I see investors encounter when refinancing their properties.
Should you write-off almost anything? Maybe not if you want to refinance your property and get access to your hard-earned equity. Consider that for every $1 reduction in reportable income, you could decrease your potential loan amount by $11-13.
When you decide to invest in real estate, you invest your time and energy into finding the perfect property and waiting for the right time to buy. Then, after you’ve purchased and financed the property, you shift your focus to managing the property to maximize cash flow. Sounds good and it is … at first.…