All Forum Posts by: AJ Exner

Finding a good deal source, buy-box, or a strong realtor who is knowledgeable on the area and what you are trying to do.

Otherwise, securing reliable funding is going to be your next hurdle. A lot of good lenders and brokers on Bigger Pockets but certainly being aware of who is financing in your area of interest with specific knowledge on amounts, leverages, and experience requirements to go along with rates.

Being up front goes a long ways, so talking to groups and have a good idea on what you are trying to do will really help.

Good luck though! Tons of good opportunities and never too late to jump in!

Happy to connect and help if it would be helpful. 

Hey Ken,

Yeah, the two big things I see with bank owned are Quiet Title issues and closing timelines. 

Sometimes the bank owned stuff requires that you have the financing up front which hinders options on the financing side of things. So I would check with that first and see if you should look into some 'Delayed Financing' options.

Quiet title being a big one. If there are any mechanic's liens or tax liens, then obviously that is going to make it really tricky to do anything with. In that sense, its a bit more high-risk, high-reward.

Plenty of opportunities though! Happy to chat about financing strategies if you decide to jump in that direction.

Good luck!

Hey Nicholas,

It depends on the lender that you use, but a true 'delayed purchase' should give you the flexibility you need to get the mortgage you need.

Is it a stabilized property or one that needs some rehab?

Hey Jose,

Are you looking to connect with a DSCR lender down in Houston or somewhere else? And have you utilized the 'Build Your Investing Team' tab for lenders?

Would love to connect and see if we could help

Hey Elijah,

I'm sorry you haven't had luck with the CWL feature, I have made some great connections through that.

Upstate NY is probably why as NY in general is a little trickier. I think HML for acquisition/rehab would be the simplest, and I think if you found a group that doesn't ask for a bunch of reserves, you might be in good shape.

Happy to connect and see if I could help!

Hey Adam, 

Yeah, that makes sense, and on top of the market rent situation, I know Kiavi/Lima require a pretty high minimum DSCR (1.1-1.2, I believe) while some will go down to 1.0 and will even use 110%-120% of market rents if yours comes in higher.

Sending over a DM, would love to connect and talk through the strategy a little more and see if we could help you find a reliable and repeatable model.

Good luck!

The BB one looks really good, I was seeing low-mid 7s and with no-PPP that's pretty good these days.

I wouldn't be too scared of some of those fees. Sounds like you're getting good value by eliminating that PPP. 

The demand is there and there is plenty of opportunity all across NWA and especially Bentonville.

The growth there will continue with the development of the new home office and the revamping of the in-person work force, I think it could be a great idea.

Happy to connect if you are looking for help!

Hey Troy,

If you are investing in OH, Kiavi and some other big name HMLs might not be the best fit because of minimum loan amounts and minimum purchase price.

Ohio, along with AL, MS, parts of MO and a few other places can still get some solid BRRRR opportunities below 50k, which is (unfortunately) below the minimum allowed purchase price for a lot of groups and might even run into minimum loan amounts.

Kiavi not only has that, but they also push back if the rehab is over the purchase loan amount, which can happen quickly up there.

Otherwise, they are a great option if your deal(s) fit within their parameters. Plenty of other options though that I would recommend based on the specifics of the deal.

Happy to connect and help where I can!

Hey Jacob,

Plenty of lenders would be happy to help you get started! There are  3 factors that they would want to know and get a feel for before they would fund on this one.

Obviously with this being your first deal (on paper, on your own), they would want to get a sense of what kind of risk they are looking into. They would want to know your credit score and your liquidity to get an idea of your borrower profile. Especially in a bigger deal like this, they might want to make sure you have reserves on top of your cash to close in case the deal takes longer than anticipated or goes sideways at all once you start the rehab.

Besides your FICO and reserve requirements, you might also run into concerns with this being in Florida. A lot of lenders are bowing out of FL right now due to insurance costs and risks there, so I would anticipate some hesitancy from a lot of lenders which would likely reduce the initial leverage that they would be willing to give you.

All that being said, should still have plenty of options! What kind of leverage are you looking for on this venture?

Good luck!