James Menz

Quincy, MA (USA)
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Private Real Estate Investors

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Location: Quincy
Industry: Real Estate
Year Founded: 2004
Number Employees: 1-10 people
Description: Hello. I am a private real estate investor on the side and have a good full time job. I would like to share with you my current situation. I made $106,000 in 2008 (base pay plus overtime etc.). I have excellent credit. I own 3 homes (2 two families and 1 single family). I reside in the single family and will be staying there long term. I have no car payments and do not owe much besides secured real estate loans. I purchased the first 2 family (216-218 Beech Street, Manchester NH 03103) 5 years ago (January 2004) in Manchester NH with a 80/20 loan. We (my wife and I) purchased it for $249,900 with "interest only" loans. We had a very low payment every month, but after 2 years we had to re-finance because it became adjustable. We now have a new loan, but the first is a 30 year fixed at 6.875% and the 2nd is a installment loan at 9.625%. We owe $224,942.17 + $21,675.73 = [$246,627.90 combined]. Our rents are $775 and $775 monthly ($1550 total). Our total payments monthly (1st, 2nd, escrow) are $1524.07, $187 and $459.20 = [$2,170.27]. At this point the loan is about a 91% first and 9% second. I would consider an "interest only" loan(s) to significantly lower this payment. Ideally, the loans could be rolled into one loan. I purchased the 2nd 2-family (102 Sachem Street, Quincy MA 02170) 3 and 1/2 years ago (July 2005) for $438,000. We currently have a newer loan on this one as well. The 1st is a fixed 30 year at 6%. The 2nd is a home equity at 7.125%. We owe 385,751.76 + $41,750.84= [$427,502.60 combined]. Our rents are $1,650.00 and $1,495.00 totalling $3,145.00. Our total payments monthly (1st, 2nd, escrow) are 2,398.20 + $289.69 + 664.12 = [$3,352.01 total]. We are now at about a 90% first and a 10% second. I would consider a "shorter fixed term loan(s) IE: 20 or 25 years" with a lower interest rate and/or lower monthly payment. Ideally, the loans could be rolled into one loan. I purchased the single-family home 2 and 1/2 years ago (July 2006) for $485,000 with a 80/20 type loan. This house is waterfront with views of the city of Boston. It was originally on the market for $620,000. The seller, a woman in her 80's, wanted a young couple to move in and didn't really care about the money etc. I think we got a really good deal and am assuming that I have some good equity despite these tough economic times. The 1st is a 30 year at 7%. The second is a 20 year at 8.856%. We currently owe $378,356.94 + $92,205.74 = [$470,562.68 combined]. Our total monthly payments (1st, 2nd, escrow) are 2,581.37 + $860.30 + $902.05 = [$4,343.72 total]. We are still at around a 80% first and a 20% second on this home. I would consider a "shorter term loan(s) IE: 20 or 25 years fixed" with a lower monthly payment and/or lower interest rate. I would also consider a longer term loan such as a 40 year. Ideally, I would like to roll these two loans into one loan. I am VERY interested in lowering my mortgage payments since interest rates are at an all time low. My concern is this. Everyone tells me that I probably don't have the equity to refinance any of them (because I have the 80/20 or 90/10 type loans). It is very frustrating, as I have NEVER missed or been late on a mortgage payment and have excellent credit. Of course I would like to take advantage of these current low rates, as we will probably never see them again. Am I wasting my time and yours, or is there something that can be done for someone in my shoes? I have spoken with my current mortgage holders and they state that they can only help me out if I am late etc. They basically cannot do anything for an excellent customer. They will not even consider lowering my rates unless I am late, which doesn't make much sense to me. I can guarantee they will lose my business down the road when my equity grows! I apologize, as I am rambling on. I am just a hardworking family guy who pays his bills. I have been a real estate investor for 5 years and have been in the same profession for 10 years. I am hopeful that there is a company out there who rewards responsible people who pay all of their bills, but have yet to find one. I eagerly await your reply and I hope to do business with you in the future. Have a nice day. James Menz 41 Post Island Rd Quincy MA 02169 (URL removed)