Newbie Investor Looking to Partner

[Steven Moore]

Good Afternoon BP Community!

I know what your thinking, "Gosh, another newbie looking to invest".

Lol, well you're right. I've been looking into real estate roughly for the past 2 yrs. With my main focus being wholesaling, I haven't had too much luck here in the Houston/Katy area. Looking to switch gears a bit and try something different, I would like to start looking at rental property moving forward since my overall goal is to build a hefty rental portfolio. My goal for the next few days is to reach out to local banks and gather information on loans and policies and things needed to qualify for an investment loan.

With all that said, my question is what should I ask these lenders as I'm "shopping" around these next few days?

So far I have:

-Do you work with investors?

-Loan Types?

-Downpayment Needed?

-Terms of each Loan?

-Do you offer non-recourse loans?

Also, does anyone here have a problem property they are looking to get rid of?

All feedback is greatly appreciated! 

[Tony Castronovo]

@Steven Moore if you are buying a distressed property it may be difficult to go the conventional lending route. Most banks and credit unions have a hard time lending on fixer uppers. Alternatively, if you can find a HML or private lender with decent rates/terms you can acquire that way and then refi into a conventional loan once you've done the rehab.

Before I got into MF, this was my model. I’d purchase a distressed property for $100-110k, put $20-25k into the rehab, place a tenant, then refi in 90 days. We were usually appraising for $160k ish post-rehab.

Yes, you have two transactions and the extra closing costs, etc. But lenders were more willing to lend on rehabbed properties with leases in place. There are HML's that also have "landlord loans"... in other words, they handle both transactions (usually through a lending partner). If your deal can pencil out it's just the cost of doing business.

My 2 cents.