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August 5, 2010 at 3:05 PM in reply to: Well folks….Looks like interest rates for loans are about to go lower…… #587174August 5, 2010 at 3:05 PM in reply to: Well folks….Looks like interest rates for loans are about to go lower…… #587708
surveyor
Participant[quote=outtamojo]Crap I wish rates were this low about 2 months ago before we decided to use our second home as a rental.
Are closing costs on rental home refi tax deductible?[/quote]Yes, but I believe you have to amortize them.
August 5, 2010 at 3:05 PM in reply to: Well folks….Looks like interest rates for loans are about to go lower…… #587815Participant[quote=outtamojo]Crap I wish rates were this low about 2 months ago before we decided to use our second home as a rental.
Are closing costs on rental home refi tax deductible?[/quote]Yes, but I believe you have to amortize them.
August 5, 2010 at 3:05 PM in reply to: Well folks….Looks like interest rates for loans are about to go lower…… #588122Participant[quote=outtamojo]Crap I wish rates were this low about 2 months ago before we decided to use our second home as a rental.
Are closing costs on rental home refi tax deductible?[/quote]Yes, but I believe you have to amortize them.
Participant[quote=andymajumder]The real winners have been people who bought in the late 1990s or 2000-2002 span and were able to refinance to the low rates now.[/quote]
That would describe me, but unfortunately my mortgage broker has just informed me that fannie mae will not let me refi since I have more than four property loans.
/sob
Participant[quote=andymajumder]The real winners have been people who bought in the late 1990s or 2000-2002 span and were able to refinance to the low rates now.[/quote]
That would describe me, but unfortunately my mortgage broker has just informed me that fannie mae will not let me refi since I have more than four property loans.
/sob
Participant[quote=andymajumder]The real winners have been people who bought in the late 1990s or 2000-2002 span and were able to refinance to the low rates now.[/quote]
That would describe me, but unfortunately my mortgage broker has just informed me that fannie mae will not let me refi since I have more than four property loans.
/sob
Participant[quote=andymajumder]The real winners have been people who bought in the late 1990s or 2000-2002 span and were able to refinance to the low rates now.[/quote]
That would describe me, but unfortunately my mortgage broker has just informed me that fannie mae will not let me refi since I have more than four property loans.
/sob
Participant[quote=andymajumder]The real winners have been people who bought in the late 1990s or 2000-2002 span and were able to refinance to the low rates now.[/quote]
That would describe me, but unfortunately my mortgage broker has just informed me that fannie mae will not let me refi since I have more than four property loans.
/sob
Participantdowns
In my case, the interest rate, amortization, payments, LTV, and terms were all superior to what I could get from the commercial lenders (the ones who would give me the time of day). I had a few years to get the loan and I figured I was a shoo in. At the time, I could easily qualify to get a house in San Diego for the same price as the apartment (in excess of 10 units). But I underestimated the lending environment, and how difficult it was to get the commercial loan.
Participantdowns
In my case, the interest rate, amortization, payments, LTV, and terms were all superior to what I could get from the commercial lenders (the ones who would give me the time of day). I had a few years to get the loan and I figured I was a shoo in. At the time, I could easily qualify to get a house in San Diego for the same price as the apartment (in excess of 10 units). But I underestimated the lending environment, and how difficult it was to get the commercial loan.
Participantdowns
In my case, the interest rate, amortization, payments, LTV, and terms were all superior to what I could get from the commercial lenders (the ones who would give me the time of day). I had a few years to get the loan and I figured I was a shoo in. At the time, I could easily qualify to get a house in San Diego for the same price as the apartment (in excess of 10 units). But I underestimated the lending environment, and how difficult it was to get the commercial loan.
Participantdowns
In my case, the interest rate, amortization, payments, LTV, and terms were all superior to what I could get from the commercial lenders (the ones who would give me the time of day). I had a few years to get the loan and I figured I was a shoo in. At the time, I could easily qualify to get a house in San Diego for the same price as the apartment (in excess of 10 units). But I underestimated the lending environment, and how difficult it was to get the commercial loan.
Participantdowns
In my case, the interest rate, amortization, payments, LTV, and terms were all superior to what I could get from the commercial lenders (the ones who would give me the time of day). I had a few years to get the loan and I figured I was a shoo in. At the time, I could easily qualify to get a house in San Diego for the same price as the apartment (in excess of 10 units). But I underestimated the lending environment, and how difficult it was to get the commercial loan.
Participantanecdotal
It’s what I’ve heard from commercial lenders and also from a few horror stories.
There are not a lot of “distressed” commercial sellers. They tend to be more savvy than most and will usually not sell into a bad deal. These people are usually able to hold on to a property for a long time.
Being commercial, these guys will not agree to a long term deal. They will usually require that the loan be paid off within a few years (3 years to 5 at most). If you go into this type of deal, there is no guarantee that you will be able to find a new loan within that time frame. As investors, we are always optimistic that someone will give us funding but in commercial it is just too risky. If you are not able to find funding in that time, you will be stuck trying to renegotiate with the owner/seller on worse terms or accepting a last minute deal from a commercial lender with not so favorable terms.
If it cash flows terrific, you should be able to find funding. If it isn’t, then the lenders will not want to give you funding anyways. That’s kind of a sign that maybe the deal you have is not so terrific as you thought.
Just my two cents. It happened to me and I was VERY fortunate to find funding. Understand that I’m kind of an easy going person and very positive, but the owner/seller in my case was a total ass and I would not recommend that experience to anyone. Live and learn.
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