All Forum Posts by: Aharon Najafi

Many lenders are hesitant about becoming second position on a potential loan. It almost seems as though its first position or no position. Is there a way you could do the deal without assuming the mortgage and just instead purchasing the property outright from the seller? You may find more luck in this way!

No, it wouldn't make sense to do that since the assumed mortgage has a 1.72% rate. But Yes, I have seen a lot of that fist position only.

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I'm working on a deal where I am assuming a mortgage and I am looking for a lender who can cover the rest of the purchase price in second position.

Has anyone done this before and who did you use? I have done a google search but there's no real way to tell how the lender operates until you are knee deep into the deal.

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Quote from @Wale Lawal:

@Nicholas Burch

Motivated sellers are everywhere; you just need to know how to find them. Here are some tips for how to find motivated sellers:

Find Your List: Use public records, internet research and networking to compile a list of property owners in the area.
Create Marketing Collateral: Strategize the best way to reach out to your list and draft sample messages.
Send Direct Mail: Launch a direct mail campaign (with scheduled follow ups) to your target group of property owners.
Filter Your Leads: Prepare questions for potential leads and begin pin pointing motivated sellers.
Follow Up: Schedule reminders to follow up with your motivated seller leads.

All the best!

I'm having the same issue as the OP. I tried the above but still no dice - in fact, I wasted about $1500 doing this. The only thing I have found that works is if you get lucky and get in with a hedge fund.

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Quote from @Erik Estrada:

Quote from @Aharon Najafi:

Quote from @Erik Estrada:

Quote from @Aharon Najafi:

Looking for some second position lenders but I have not had much luck on google. Does anyone have any suggestions on how to find lenders that will accept second position?

Hey Aharon,

What are you trying to achieve? A hard money lender might be able to help but you would need some skin in the game.

I think I would prefer a line of credit against a property, a HELOC. SO that I can put it back when I dont need it but I'm looking for something temporary. I'm planning on using it for a Flip so I'd be open to JV as well.

If I am understanding correctly,

You are looking to flip a property and looking to get a second position loan to cover the purchase?

yup

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Quote from @Erik Estrada:

Quote from @Aharon Najafi:

Looking for some second position lenders but I have not had much luck on google. Does anyone have any suggestions on how to find lenders that will accept second position?

Hey Aharon,

What are you trying to achieve? A hard money lender might be able to help but you would need some skin in the game.

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Quote from @Matt Devincenzo:

You need to describe the lending scenario to get any sort of productive advise here. Are you borrowing against a home you already own? Looking for an additional source of funding in 2nd position for a upcoming purchase? What total $$$ are you looking for? What LTV and CLTV? Do you have additional assets for a cross collateralization scenario?

That's the thing, I don't even know all my options or what would be beneficial. im looking for 50k, no idea on the ltv or ltc, I have 2 properties that i can leverage.

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Quote from @Matthew Gaddis:

There are a few options out there. Are you looking for a line of credit or a second mortgage?

That would be fine but I'm already aware of HELOC but maybe you can help with the second mortgage scenario

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Quote from @Erik Estrada:

Quote from @Aharon Najafi:

Looking for some second position lenders but I have not had much luck on google. Does anyone have any suggestions on how to find lenders that will accept second position?

Hey Aharon,

What are you trying to achieve? A hard money lender might be able to help but you would need some skin in the game.

I'm trying to cover my expenses to close and turn it around in 4 months.

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Looking for some second position lenders but I have not had much luck on google. Does anyone have any suggestions on how to find lenders that will accept second position?

1 Vote

Of course everyone considers turnover as part of their estimate when analyzing a property but how do you do it?

For me, I started with 3 months of mortgage and reduced the forecasted net revenue by that much. I later found out (on rehabs) that it takes that long to finish the renno and then an additional 3 to place a tenant and for the non-rehab about 3-4 months. 6mo for the rehab scenario and 4mo for the non-rehab os a good chunk of change and just projects year 1 but not any other year. Because of this turnover cost my target prices are much lower than they probably should be which leads to lower offer acceptance rates and some agents gawking at the offer.

What strategy do you use for turnover and how do you use that to ensure you have a good offer price that will still allow a good margin?

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All Forum Posts by: Aharon Najafi

Aharon Najafi has started 13 posts and replied 33 times.

Post: Best Second Position Lenders on a Purchase

Post: Best Second Position Lenders on a Purchase

Post: Seller financing leads

Post: Second Position Lending

Post: Second Position Lending

Post: Second Position Lending

Post: Second Position Lending

Post: Second Position Lending

Post: Second Position Lending

Post: Do you include turnover?