Whiterock REIT Announces Agreements to Acquire $77 Million of Accretive Class ... MarketWatch (press release)
Announced today that it has entered into binding agreements to purchase a Class A newly built, long-term leased, single-tenant office building in the greater Kansas City area for approximately US$38 million (before closing costs) and a Class A newly built, long-term leased, single-tenant industrial building in the greater Nashville area for approximately US$39 million (before closing costs). These properties are 100% leased to investment grade tenants, with a total rentable area of approximately 902,000 square feet and a weighted average remaining lease term of approximately 15 years. Management expects the impact from these acquisitions to add approximately $0.01 to annualized on-going AFFO per unit. The first full quarter impact of this increase to AFFO per unit is expected to be realized commencing in the fourth quarter of 2011."These acquisitions present an excellent opportunity for Whiterock to expand into the U.S. through newly built, long-term leased properties, backed by investment grade tenants," said Jason Underwood, Chief Executive Officer. "We expect these U.S. properties to deliver consistent and reliable cash flows, low volatility, upside through rent steps, and geographic diversification. We continue to successfully execute on our disciplined and accretive growth strategy, building long-term value for our unitholders."
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Investment property cash out refinance in Michigan
www.FirstCommerceFinancial.com Fannie Mae just announced new guidelines that will enable an invester who paid cash for an property to refinance ...
Please help me with a cash out refinance of an investment property?
Have you heard of OptAmerica?
I went through Suntrust first to refinance my rental property. They told me it's hard to get cash out with an investment property. I then went through Lending Tree, and Opt America sent me a Good Faith Estimate which looks WAY better than what Suntrust was offering me. I'm wondering what the difference could be. With Suntrust, I have to pay a 1% origination fee, .375 discount point, getting only $3000 cash back. With OptAmerica, there is no origination fee, no discount point, no prepayment penalty, and $8,000 cash back. Whats the catch?
Multiply the 1% origination fee and the .375 discount x your loan amount... total sum of both. That is where your money is going Suntrust is eating up your cashout with in-house fees. The OptAmerica is the better loan if your objective is cash out and not the rate.
The one with Opt one might have mortgage insurance. Its impossible for anybody on this site to tell you the difference from what you have said. Opt looks okay, but for what rate and what mortgage insurance. Suntrust might be able to kill the origination and discount with the same rate that opt is giving you. They let the bank pay them. Its called yield spread.
Check them both carefully.
Good Luck
Refinancing to cash out on investment property at 80% appraised value.?
Example: propert is appraised a $65k, 80% of that is $52k. Amount owed is $24k, cash out would be about $24 after fees. Would taxes be owed on this amount or only when house is sold for final price?
No taxes due on the cash out from the refi.
It is one strategy to obtain tax free $ from investment RE. Your basis does not change however, and the amount of cap gains will still be based on the sales price less the basis.
If I had a property listed on the market, but it did not sell, can I refinance it?
I had an investment property on the market, but with the market conditions, it did not sell. Now that the rates have dropped, I can refinance it and easily turn it into a cash flow + property. Is there a rule that says I can't refinance it if I take it off the market?
to add details, I do have renters in there now...
hard to know if you will be able to refinance, many people based upon their situation are finding that they can not refinance need more detail like loan versus equity in the place
Some common sense Underwriters will go with 6 Months and a good explanation letter.
Does anyone know of a commercial lender in Ohio that will refinance single family properties?
I have a set of 4 single family investment properties and am looking to refinance them on a commercial note? They really are not seasoned and I was wondering if anyone knew of a lender that would refi them and give me some cash out at about 80-85 loan to value? They are all rented and produce a good cash flow monthly and all were recently remodeled. They are all located in Columbus, Ohio.
www.peoplesbancorp.com. Call Rick Lentz @ peoples bank. I have worked with them on several projects and they have a down to earth quality I like. They do commercial and residential and are looking for new clients.Oak Hill Banks is another good lender that is easy to work with.They have several branches also. We work with the one out of Chillicothe and the contact is Jeff Doles.
Is negative amortization a good idea to refinance my house?
Here's the scenario: I've been offered by my lender into a 1% neg amortization with a 50K cash out. I do have enough equity to apply for this loan. My monthly payment will be reduced into half compared to my current rate. But the downside of neg am is at the end of every year, they will add an additional $3500 to my principal with a 3 year pre-payment penalty, in which I thought it's not that much. I was thinking to buy another investment property using this 50K cash out and get another negative amortization loan on this 2nd property and I can rent it out. I thought this will be a good offer since I can get a cash flow through this rental. The reason I'm refinancing because my current rate was a 1 year arm and it's going to increase to 7.5% soon.
In finance, negative amortization, also known as NegAm, is an amortization method in which the borrower pays back less than the full amount of interest owed to the lender each month. The shorted amount is then added to the total amount owed to the lender. Such a practice would have to be agreed upon before shorting the payment so as to avoid default on payment. Also known as deferred interest or Graduated Payment Mortgage (GPM).
All NegAM home loans eventually require full repayment of principal and interest according to the original term of the mortgage and note signed by the borrower. Most loans only allow NegAM to happen for no more than 5 years, and have terms to "Recast" (see below) the payment to a fully amortizing schedule if the borrower allows the principal balance to rise to a pre-specified amount.
This loan is written often in high cost areas, because the monthly mortgage payments will be lower than any other type of financing instrument.
Negative amortization loans can be high risk loans for inexperienced investors. These loans tend to be safer in a falling rate market and riskier in a rising rate market.
Start rates on negative amortization or minimum payment option loans can be as low as 1%. This is the payment rate, not the actual interest rate. The payment rate is used to calculate the minimum payment. Other minimum payment options include 1.95% or more.
NegAM loans today are mostly straight Adjustable Rate Mortgages (ARMs), meaning that they are fixed for a certain period and adjust every time that period has elapsed; e.g., One month fixed, adjusting every month. The NegAm loan, like all Adjustable Rate Mortgages, is tied to a specific financial index which is used to determine the interest rate based on the current index and the margin (the markup the lender charges). Most NegAm loans today are tied to the Monthly Treasury Average, in keeping with the monthly adjustments of this loan. There are also Hybrid ARM loans in which there is a period of fixed payments for months or years, followed by an increased change cycle, such as six months fixed, then monthly adjustable.
The Graduated Payment Mortgage is a "fixed rate" NegAm loan, but since the payment increases over time, it has aspects of the ARM loan until amortizing payments are required.
The most notable differences between the Traditional Payment Option Arm and the Hybrid Payment Option Arm are in the start rate also known as the "minimum payment" rate. On a Tradiitional Payment Option Arm the minimum payment is based on a principal and interest calculation of 1%-2.5% on average.
The start rate on a Hybrid Payment Option Arm are higher yet still extremely competitive payment wise.
On a Hybrid Payment Option Arm the minimum payment is derived using the "interest only" calculation of the start rate. The start rate on the Hybrid Payment Option arm typically is calculated by taking the Fully Indexed Rate (Actual Note Rate) then subtracting 3% which will give you that start rate.
Example: 7.5% fully indexed rate - 3% = 4.5% (4.5% would be the start rate on a Hybrid Pay Option Arm)
This guideline can vary between lenders.
Alias's the Payment Option Arm loans are known by:
* Negative Amortizing Loan (Neg Am)
* Pick - A - Pay
* Deferred Interest Option Loan (This is the way this loan was introduced to the mortgage industry when first created)
Need advice on ideas for investment property in SC?
I am in a tough spot and could use some advice. I own 2 condos in the Hilton Head Island area. I bought them 2 years ago with 100% financing and no interest loans to rent out and hopefully then sell by now. We really didn't overextend ourselves early on, but my wife cannot find a job now and the rent doesn't cover the costs of owning and our savings has dwindled to not enough to cover the costs for much longer.
1. Does anybody know the foreclosure laws on SC to know if they can recover the different in sale price? If we foreclose, we owe 100%, so I am sure it won't sell for that amount. Has anybody heard of the lender making a deal beforehand for how much they could recover? Such as if we agree to pay off the HELOC for the 20% they don't try to recover anything else.
2. I have a friend that deals with rental properties and would possibly agree to take them on,but neither of us has the cash to refinance. Has anybody heard of the lenders allowing someone to assume the loan?
One potential bright spot for you is that lenders are under an enormous amount of pressure right now to work with consumers, as opposed to initiating foreclosure proceedings. The most important phrase for you to know for the foreseeable future is, "Loss Mitigation".
Most major lenders have a LM Department, which is separate & apart from their collections dept. Folks in LM are much more likely to work with you on options which may salvage your credit. Explain your situation to them and ask about the most common loss-mitigation options, including:
- Forbearance
- Reduced Payments
- Loan modification
Search for Liz Pulliam's article titled, "Your Lender Doesn't Want Your House" at moneycentral.msn.com Content therein is extremely relevant to your position, and article offers excellent advice in greater detail + info on free consumer resources you can call for more info.
Another silver lining is that you can tell LM that if they will allow someone else to assume [the loans] you have a potential "built-in buyer" who is willing to take them over (if I read your post correctly). Try to lead the conversation in that direction, and who knows - you've nothing to lose by asking, and with an 'official' recession looming, they may be happy to let the loan become assumable.
Hope this helps, and best of luck to you & your wife.
Should I refinance or use exchange 1031?
I have a single residence house for rent and it has positive cash flow after all the expensive including mortgage and property tax. My loan has a very low interest rate with 11 more years to go. I want to buy a multi-units apartment as an investment property. My question is should I refinance the existing loan to cash out some money and use that money to invest in the new property or should I just sell the house and use exchange 1031 to buy a new property? I don't know what to do because this existing proerty does generate positive cash flow (about $400 per month). Any idea will be helpful. Thanks
Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties. 1031, or tax-deferred, exchanges hold great advantages. Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized. Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties.
* Publication 544, Sales and Other Dispositions of Assets: http://www.irs.gov/publications/p544/index.html
* Form 8824, Like-Kind Exchanges (PDF): http://www.irs.gov/pub/irs-pdf/f8824.pdf
Section 1031 Exchanges: The Basics: http://www.realtor.org/libweb.nsf/pages/fg408#topica
If you sell and buy, you won't be able to defer any tax for the property you sold.
Since you are paying a low interest mortgage, take some time to think about how much on interest you will be paying for the new property. And how much will you be making grossly from renting out the multi-dwelling residential units.
I would consult a 1031 exchange specialist or a broker who knows what she or he is doing. 1031 exchange is not handled by all real estate broker, so make sure you talk to the SPECIALIST.
I suggest you let this investment stand alone since you have a positive and good cash flow on this one. Then look at the other investment strictly on its merits with a new loan and other expenses. If it looks good, then borrow against it and go for it.
Phil
Feel free to contact me via: http://www.slarson.com/contact or steve@slarson.com .
Investment Property?
I have an investment loan at 6.5% and a positivie cashflow on it. Does it make sense to refinance my primary home at 5.37% and get some cash out to pay off that investment loan (in terms of tax write-off, deduction, and so on)?
Thanks
How do I shop for better investment mortgages?
I own several apartment buildings - some with lots of equity build-up. I need to get a better cash flow off the properties (because of increasing energy cost, insurance cost, ect.) - so want to refinance. I've got all this money sitting there in the properties in the form of equity -I need to pull some of it out - but I don't want sell any - just improve the cash flow. So - What's the best place to look for refinancing my properties? And is my logic on this thing make sense? Thanks
Makes sense. Lots of people keep their properties leveraged, usually to buy more.
An investment property: hold, draw equity, or sell?
I have a house with approx. $100,000 in equity and rental income that's covering the mortgage payment + management fee. The mortgage is at a fixed 5.375%, fully paid in 10yrs.
I've been thinking about refinancing to get cash out in the hopes that I can make more aggressive returns with the money, instead of having it buried in a very slowly appreciating house. Based on loans I've investigated, I can only get about 40-45K in cash out and keep monthly payments low enough to remain covered by the tenant (buying points + closing costs will suck 4-6K out of the equity, too).
This would be an easier decision if I could get the same interest rate without buying points of course!
I suppose for better advice I should disclose my general situation, too: I'm young, have a relatively stable job, 6mos expenses saved, and max out my 401K. I'm thinking that now's the best time to invest in higher risk/yield instruments.
Location? Equity based on a current appraisal? Interest rate for the refi? Refi to me would be a waste of 4-6 K. In the end only you can decide. What about your Roth IRA?
cash out refinance on investment property - News
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