Results for ‘Debt’ category

From whom should I borrow?

(Sorry for the obnoxious headline… my inner grammarian wouldn’t allow me to end a headline with a preposition.) Had a friend call me today asking that simple question. Turns out a broker has been pushing her to use a particular loan broker and my friend wanted to know if that was good advice or not. So, without

The economics of buying a home in an improving neighborhood

You can now get regular financing on a house under $419,000 for up to 95% of the purchase price. These aren’t FHA loans with high mortgage insurance payments; they’re relatively standard bank loans. Thought I’d run the numbers on a standard, $350k house in an up-and-coming neighborhood to determine if it makes sense for renters to

Where are interest rates going?

I have no idea and anyone who says they know for certain is either: A liar; or Should be trading interest rate futures on Wall Street That said, having a view on interest rates is pretty important in our business. Why? Because the price of income producing real estate is highly dependent upon the cost

The problem with banks

I’ve been working on a simple bridge loan for a month. We bought the property all-cash and are capitalized with additional cash to fund the rehab (which has already begun). We paid $2,051,000 for the building and intend to spend another $700k renovating. I have asked a bank to provide the following loan: $1.2MM 5%

Avoiding a pretty painful “oops”

A reader wrote in to ask me a question about yesterday’s piece, which argued for refinancing and holding, rather than selling, completed repositioning projects. The question: “Only thing I don’t understand is why not refi on a LTV more than 60% to get back all of your original 2million dollars.” It’s a reasonable question. After

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