All Forum Posts by: AJ Exner

Do you mind sharing what the broker is charging on average? A lot of brokers will work wholesale with the lender so you shouldn't be paying too much more than even if you went direct. 

It would have to be when you buy it as I would assume it would be difficult to do it when you 'finish' rehab (would be hard to establish without getting a full appraisal).

Say the appraisal comes back and it's a 'surprise' subject to, like you forgot to install your smoke detectors or something, would that group then set the seasoning clock on when the property is no longer 'subject to'? If there is a group doing that, it would be hard to imagine them ever working with experienced investors. 

First off, great name

Second, that sounds about right. I know that there are a few groups getting pretty aggressive and you might be able to sniff into the high-6s with the 5 year being under 4 for the last few weeks.

And definitely check into the Prepayment Penalty situation. My guess is that the origination is a little higher, as noted by some of the commenters, because it is in PA. PA has a unique stance on Prepayment Penalties so you might want to confirm with that particular lender's licensure in PA and what they are planning to do with that.

Good luck! Happy to help and advise where I can

Hey Amy,

None down in FL, but if I had any guesses based on just the rehab climate down there your biggest issue is going to be finding an insurance policy to cover the work. 

Many lenders are completely backing out of the FL market based on just the insurance risk alone, so I would talk with a few groups to see if you can line up the required insurance policy first before you get too far down that road.

Are you planning on leveraging some kind of financing to get started or are you planning on doing it in cash?

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!