All Forum Posts by: AJ Exner

Hey Duane,

Congrats on the work thus far! 8 in 24 months is no joke, especially chipping away one at a time, I'm sure it has come with plenty of teachable moments, but its awesome that you are able to ask the question of how to scale.

To start, a hard money lender that is only allowing you to do one at a time with your track record is... well... kind of silly. There are plenty of HMLs that would look at your 8 'exits' (whether you kept or sold) and put you on some kind of "Pro" category and help you leverage as much as possible to grow as quickly as possible. 

Just keep a good record of your SREO and hang onto the HUDs that you've had from both your purchase and your sales. Once you use those to establish your experience (along with appropriate LLC Operating Agreements to show involvement of owning LLC) then 2025 should send you to the moon!

Northern VA is such a great place to invest right now, a great sweet spot in value add properties + availability. The cost of entry is a bit higher compared to Detroit or Alabama, but the fact that you are grooving is awesome.

I would add to talk with your family to discuss the amount of leverage you are comfortable with as you start talking to these new HMLs. Many will promise high Loan to Costs and low, low down payments, but think about the Interest Rates and what you are comfortable with when it comes to giving up equity in a deal in order to do more deals. 

Congratulations again on what you've accomplished so far, good luck in the future and don't forget about us little guys when you've "made it". 

Hey Brandon, 

Some would require some reserves, or at least to show cash to close on any new deal.

Are you anticipating opening up a HELOC on your primary to get the cash needed to close? Even with HMLs, they would either want to see reserves, or you would still need to put in a little 'skin' into the game to make the deal work

Good luck!

Hey Brandon,

I actually have a client up there who might be helpful, just shot you a DM, would love to connect.

Good luck!

Quote from @Kylie A.:

Quote from @AJ Exner:

Quote from @Kylie A.:

Do any of you invest in rental properties, wholesale, or flips in small towns? I’d be looking for areas with major stores or ones that are close to a big city but not too far. I’m thinking a small town could be a great place for me to start compared to big cities. I’m considering either buying a rental since it’s cheaper or purchasing a flip if the market is booming enough. Anyone currently investing in small towns? Let me know your thoughts below

Hey Kylie,

VERY doable as long as you are cognizant on a few things. 

Most groups are fine as long as the actual appraisal doesn't state that its Rural (see example below for where it would be on an appraisal). Even towns of less than 10k, as long as it is in a "good part" of town and there is somewhat stable growth in that area, then most lenders will not add any additional underwriting guidelines, especially if it is rented out.

I always like to do the Walmart check (kind of what you recommended being by a store). If you can clearly define your buy box and be up front with any program you go with, then you should be ready to go!

Good luck! Happy to recommend and help however I can.

 if its rural is it hard to get lending or something I'm confused, I'm new to this so rn I'm learning 

It can be. There are lenders that "specialize" a bit more into those kind of areas, but from the eyes of a lender, what could happen is that they see 'rural' as a sign that you might struggle finding tenants down the road. So they often will reduce the leverage of the loan (getting 65% instead of 75%) or deny it (which isn't as likely). 

Hey Kylie,

VERY doable as long as you are cognizant on a few things. 

Most groups are fine as long as the actual appraisal doesn't state that its Rural (see example below for where it would be on an appraisal). Even towns of less than 10k, as long as it is in a "good part" of town and there is somewhat stable growth in that area, then most lenders will not add any additional underwriting guidelines, especially if it is rented out.

I always like to do the Walmart check (kind of what you recommended being by a store). If you can clearly define your buy box and be up front with any program you go with, then you should be ready to go!

Good luck! Happy to recommend and help however I can.

Just shot you a DM

Usually any lender is going to want to get a snapshot of any potential licensure as well as your FICO, but should be plenty of options.

I guess the follow up would be moving on it ASAP, how long do you have to close? Often times that designation can immediately eliminate some lenders based on ability to close (despite their willingness to charge you *RUSH fees, etc.)

Good luck!

Yes, and generally their seasoning is going to be less, usually around 90 days

Bought, that is correct. 

Shouldn't be anything else that would trigger that, short of another purchase. I wouldn't recommend Quit Claiming it during that time but otherwise that should be the only thing. 

Hey Zahra,

Have a lot of clients working down there and you are correct, it has become a great place for investors.

Biggest differentiator that I have seen has been on appraisals after the repair. It has been best to anticipate wildly different ARVs based on not only the property details, but also the quality of the finishes that are used. It is hard to pin down specifically, but that seems to have been a factor in a few of the ARV-Appraisals that I've seen and has impacted the refinancing process.

Otherwise, it has been a great market for my clients, great cash flows and repeatability which has really helped as they have scaled.