streamlineinvestingParticipant@streamlineinvestingJoin Date: 2010Post Count: 171
Just to give you some background, I currently have 3 properties over in Fort Myers – Florida, 2 of them are owned outright in an LLC, and the 3rd one is in my personal name with a mortgage.
My initial loan has a 4.75% Interest Rate, 30 year mortgage and had a 30% deposit and a loan value of $55,000 (property value was around $80,000).
I was hoping to obtain another property with a mortgage but have found difficulties with the lending criteria. Talking with my mortgage broker who I dealt with for my initial mortgaged property he has told me the only option he can find at the moment is the following –
5% Interest rate on 5/1 ARM with a minimum deposit of 35% and a minimum loan amount of $100,000. This can be in the name of an LLC
Overall it is not a bad deal and I do not mind it too much, but I would prefer to be able to get a loan amount of $50,000 to make it more attractive for what I am looking for (rental returns). The rental yield goes down as the property prices go up.
Does anyone know any contacts who work in Florida who would be able to provide finance options with a smaller loan amount? I was hoping to keep investing in the Fort Myers area, as I like working with my property manager in that area.
Looking forward to hearing any response.
JamesRedwoodParticipant@redwoodJoin Date: 2013Post Count: 340lauriekParticipant@lauriekJoin Date: 2015Post Count: 35
Do you have a risk management strategy?
Putting al your eggs into the one basket can lead to a whole world of pain, I’m sue a lot of investors who put everything into the high yield North Dakota market are feeling a bit queasy right now.
Invest with your head.streamlineinvestingParticipant@streamlineinvestingJoin Date: 2010Post Count: 171
I will get on to Nigel and see how I go.
And yes I do have a risk management strategy, appreciate your concern but I do not have all my eggs in one basket. Along with my properties in the US, I also have property in Australia and shares in Australia as well. I understand it may seem risky to purchase property all within the same area in the US, but I just feel I have set up a network of people in the area who I trust to be able to help me and would find it more of a risk if I was to try and start all over again and get a new network.