All Forum Posts by: Adam Rothweiler

Anyone have opinions on Dayton?  Off-Market portfolio just came to me in the Wilmington area (I live in Denver, CO) and I'm not sure of the market.  Any insights?  Obviously Columbus is the dominant market right now, just looking to know more about Dayton.  Thanks in advance!

This post - TL:DR (Totally Long: Definitely Read).  This is great knowledge to share to novices like myself.  "Understanding a market" is a do or die for investors but I didn't really know what it meant to thoroughly understand a market.  What information is going to influence home prices, appreciation,  rental rates, etc.  This answered a lot of questions for me.  Even though I'm not investing in San Antonio or any market for that matter, I'm trying to learn as much as I can for the markets I do want to invest in and this post gave me lots of insight for what information I should be studying.  Thank you so much!

Originally posted by @Phil G.:

Conventional Mortgages that banks sell to Fannie Mae or Freddie Mac, not to be confused with FHA, do not require owner-occupancy. Down payment for a 2-4 family investment property is 25%. Rates are typically better than portfolio loans. Most investors will use conventional financing for their first properties until they hit the maximum number of loans available to an investor.

 Thank you, I must have misunderstood Fannie/Freddie.  My novice is showing, OOPS.  

Originally posted by @Donald S.:

@Adam Rothweiler since I know the deal you're talking about, I think if you can get in touch with the seller and agree to a price that makes sense for you, your best option is buying with the private money we discussed, or using the bank I told you about, but you wouldn't necessarily need a portfolio loan. It could still be a conventional loan and not FHA. Best bet is if you can get it for the 40-50k range, with the ARV truly being 120k, then repair it up and refinance into a conventional, not FHA, loan after 6 months to pay off the private lender. You would just want an experienced agent to run CMA on the property including planned improvements.

That's definitely one plan. Finding private money in the amount of $50-$65k for acquisition+repairs is going to be a challenge. I'm working with a realtor back home and he's got a couple people in mind that would bring the cash so hopefully I'll be able to get somebody in the mix. He's also running comps for me. I've got Rockwood Bank on my call list and I'll be talking to them about either a refi or a loan for the acquisition for sure, as well as some other smaller banks who might be willing to lend on the ARV!

Upen Patel I won’t be occupying the property, so an FHA wouldn’t suffice. I’m looking to get financing based off the appraisal before close. Not under contract yet, just trying to map out what this could look like

Sean Blomquist I wish it were in Denver! My rents would double!

@Sean Blomquist Thank you for the recommendation.  I will be looking for financing with a lender in St. Louis, where the property is, but I will definitely reach out to Travis and Justin if they would be willing to give me some advice!  

Hello BP!

I found my first deal! It's kind of an odd situation, at least in my limited experience. It's a four family property that was foreclosed in September 2016. The owner of the property, an LLC, is registered at the property address so it appears that the owner may have financed the property to a buyer and then ultimately foreclosed on it himself. Taxes are delinquent by 1 year. I'm going to find out if the owner is willing to sell (assuming he's the one who foreclosed on the property) and if he is, I'll be looking into a portfolio loan.

SO. My question is this. I've never talked to lenders about financing, let alone portfolio loans. I have a fair understanding of how these types of loans work, but I really would like to know what some GREAT questions to ask the bank would be. How much skin in the game I need to come forward with, if they'll lend on the ARV, if they'll do a portfolio loan on a single property, etc.

Are these valuable questions, what other questions would you ask in this situation?

If, in order to really know what questions you would ask, you need more information about the property, just ask!  

Thanks everyone!

@Megan Greathouse Thank you very much.  I did allot for $10k of repairs in my numbers, hoping that would suffice.  Not to plug TOO shamelessly, but if you're looking for a phenomenal inspector in the St. Louis area, Castle Home Inspections is an incredible organization to work with.  Very knowledgeable inspectors and incredibly readable reports (I would know since I used to work for them)!  

@Account Closed Handing off such a property to a management company is a little bit iffy to me, as well.  For my first property, ideally I would like to self-manage for the sake of learning.  Can't really self-manage from 900 miles away.  I appreciate the comment spamming!  No such thing as too much insight.  It is possible that this deal will hit the open market at an incredibly low price.  If it were $15k-$20k, then it may be something to consider.  Who knows.  I sure don't.  That's why I'm on Bigger Pockets :) Thank you for your input!