All Forum Posts by: Andrew Postell

@Jon Dawes the best technique here is to lean on other investors in your market.  Reaching out to other investors is the best way to find good lenders for what you are doing.  And I know, I know, that's what you were doing here...but this is more of a national website.  If you know what you need, but just need it in your town - whether it's a plumber, property manager, title company, lender, etc. - go local.  Ttry some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. Some of those facebook groups have thousands of members. Eventbrite too. But post locally for this. That’s the best bet.

@Account Closed if you want to ignore all of the strategies that get around your downpayment and just want to purchase another property outright then you would have to leverage something.  Either leverage an existing asset (stock portfolio, for example, if you have one) or leverage a relationship (like partnering with someone).  Also, I can't tell anything by just this post but there are investment property loans that don't require 25% down.  Some only need 20%, some need 15%...some less.  Again, this depends on your profile, state you are investing in, etc.  But if you know you need 25% down, then leveraging what you already have would be the only choice left.

@Clint Wenk this is not an issue at all. You can use rent to offset that debt right away. Mid-Term rents do cause a little complication...but that's what DSCR loans are for. Again, not a big issue but important to understand certainly. Also, it is 100% NOT a requirement to have 2 months of receipts on rents to qualify for Fannie Mae.  Now, your lender may have that rule...but Fannie/Freddie certainly don't.  As always, you can work with who you want...but there are lenders who don't need that.  

I wrote a post on how to find investor friendly lenders that you can read HERE.  It includes the questions (and answers) you should be speaking with any potential lenders about.

Hope that helps in some way.

@Susan McBride you can certainly leave this post here but this should go in the Tax and Cost Segregation forum.  Maybe even the 1031 Exchange forum if you want to try another place.  Tax question 100%.  This is more of a financing forum if that makes sense.  You might get some responses here...but you'll get a heck of a lot more in that Tax forum.

@John Cardinale thanks for the response here. Now, you can use whomever you want to use of course. And people can do whatever they want...but most of us use lenders that will lend up to a certain point with $0 out of pocket. None of this 100% Purchase w/80% rehab formula stuff. Again, you can work with whomever you want but there are plenty that will lend 100% of both purchase and 100% of rehab...as long as it doesn't exceed 70% or 75% of the ARV. If there's one formula you never forget - it's "What is 75% of the ARV?" Because that's what the best lenders will lend me on the acquisition and sometimes that's what I will get on the refinance step too...well, sometimes. I can sometimes go higher...but if I know 75% then I at least have a pretty close approximation of what I can get on both lending steps of the BRRRR Method.

Now, what lender to use?  I have not met a lender that lends nationwide with these types of numbers.  The best lenders are smaller, local lenders.  I can't tell what part of the country you are in but I bet there is one where you are...or one in the market you are targeting.  It is true that in some super small, rural place of America there may not be many options.  But we usually aren't targeting those.  Nothing is definitive 100% of the time...so maybe some people do target that...but the majority of us target cities with options.  More options means more lending, property managers, insurance, contractors, etc. options.  Populated areas.

In my original post I provided a link on how to find good lenders.  Same concept applies here - lean on other investors in your market.  It's not foolproof, but asking other investors in your area who they are using almost always gets us started on the right foot.  

How do you find other investors in your market?   Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. Some of those facebook groups have thousands of members. Eventbrite too. But post locally for this. That’s the best bet.

@Alexandra Reeves if you are asking how to make your current, primary home into an investment property...you don't need any financing for that.  You can just make it a rental.  No need to refinance or anything.

Also, if you want to connect to real estate professionals in our area there's lots of resources for this. Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. Some of those facebook groups have thousands of members. Eventbrite too. 

@Roger Paschal is a great resource for Sub To (he wrote the book on it...literally) and here's some local real estate groups I recommend visiting:

Real Estate Investing Groups

DFW REI Club – VISIT HERE – meet about 50 times per year. Lots of different topics and a very friendly group.

Impact Grapevine - VISIT HERE - Started in Bigger Pockets and super friendly atmosphere. This is the one Sherry Patterson hosts

REIAF - VISIT HERE - Wholesaling group that has TONS of members doing big numbers

Texas Tuesday Real Estate Mastermind – VISIT HERE - it also has a facebook group that you can search for

@Andrew Lax sorry, not quite following what you are asking here - are you asking if you should pay full price for a house?

@Greg Cook thanks for the post here.  Always great to hear from a fellow Texan.  Wrapping a mortgage in Texas has become a lot different in the past couple of years.  I would highly caution against using anyone outside of our state...one mistep and your borrower could get the entire mortgage balanced erased.  Texas DOJ is actively investing this...so maybe your one loan may never even get picked up by them - by why risk it?

My recommendation here is to get with some Austin investors right away. If you are local, then try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. Some of those facebook groups have thousands of members. Eventbrite too. But post locally for this and ask what service providers other investors are using. That’s the best bet.

Hope all of that makes sense.

@Alex Jacobson this scenario continues to pop up. The solution is WAY simpler. I'm not sure who's out there teaching such a structure to real estate investing (I'm guessing someone is teaching it because this keeps coming up) but this scenario is a "normal" acquisition. Meaning, a normal Hard Money Loan will lend 70%-75% of the ARV....which is more than enough to purchase this property AND rehab it with $0 out of pocket. There's no need to use so many loan/lien positions that carry difficulties in structuring and require downpayment/money out of pocket. Keep your money. Keep it simple. Depending on your exit strategy you would execute as normal to flip or Refinance after Rehab with the BRRRR Method on this type of a property. I hope this makes sense as I am describing it but feel free to ask any questions on it.

We have had some recent storms in the Dallas/Fort Worth area that have caused some serious damage and even taken lives. The damage has been so severe that we have recently been declared a “Federal Disaster Area”. This is pretty important if you own property…but it can also provide assistance for your tenants too.

When an area of the country is declared a Federal Disaster Area this opens up Federal Assistance for the residents of that area. Meaning, we can apply for relief and specifically monetary relief.

By opening a claim using one of the links below you (and your tenants) can process a claim to get financial assistance. If you are an individual that had a property loss (including personal property) then use the first link for FEMA.

The second link is for business owners…and yes, this includes those of us that have rental properties. The SBA assistance is in the form of a low interest rate loan. So, slightly different in the structure but can still be of service to those of us that had a loss.

And while I am referencing Texas these are the same links to use anywhere in the country at any time for a declared "Federal Disaster Area".

Feel free to share this information with anyone that you know that might have been impacted by these storms and maybe this can help them in some way.

To apply a claim as an individual use this link: https://www.disasterassistance.gov/

To apply a claim as a business use this link: https://www.sba.gov/funding-programs/disaster-assistance

As of this post the counties declared as a disaster area in Texas are as follows: Austin, Bell, Calhoun, Collin, Cooke, Coryell, Dallas, Denton, Eastland, Ellis, Falls, Guadalupe, Hardin, Harris, Henderson, Hockley, Jasper, Jones, Kaufman, Lamar, Leon, Liberty, Montague, Montgomery, Navarro, Newton, Polk, San Jacinto, Smith, Terrell, Trinity, Tyler, Van Zandt, Walker and Waller counties.