All Forum Posts by: Austin Hajjar

@Brandon Hicks 

I am hoping you can shed some light on your financing. How was your value determined on your properties with the blanket loan? Did they just do comps or base the value on cash flow?

I have 3 duplexes that have a hard time getting appraised the traditional route because there are literally no comps in the area of my units. My properties cash flow great, DCSR of about 2.0+ but the banks just keep giving me a Fannie Mae loan. 

What was  your pitch to the portfolio lender? I've contacted a few and they keep referring me to the "home loan specialist" Any suggestions? 

You can always apply and not use it. 

Pro's

- Allows you to finish a rehab etc in case you have those ut oh's that put you over budget. 

- you can be your own hard money lender

Con's

- interest only for usually 12 months then it changes to a much higher rate (10+%)

- if you use it solely to buy & rehab you can be over leveraged. 

- refinance options could be limited 

like mentioned  by @Greg Scott above any 2-4 multi unit will be appraised based on comps because 99% of banks will go the Fannie/ Freddie route (even portfolio lenders). I have 3 duplexes in the same city 3 blocks from each other in a C+ / B neighborhood. Our first appraisal as expected and we were able to pull out our down payment. Our second property (similar sq ft and bed/bath) was appraised $50k below our first duplex. All because the appraiser can't find comps (but my cash flow is 2.5x debt) so be prepared for that and run numbers accordingly 

Thanks @Steve Rozenberg! 

Looking for a Managing Broker that will allow a 20 yr property management company to work under their license for 18 months. Will provide a % of monthly bookings, hands off no need to manage or take care of any issues. Please PM me for further details

My property manager is looking for a managing broker for property management to provide their license while my property manager files for her broker license. They are willing to pay a monthly fee from the booing revenue. Please PM me if you know of anyone that might be interested.

The local "portfolio" banks can be hit and miss. Time seems to be an issue for you to close so I would look into hard money lenders. You can get 70-75% ARV loaned but need to have reserves for rehab, down payment, interest payment (which it seems you have). It sounds like your rehab will be pretty quick. Someone like a Civic lending might be a starting point.

Hi Josh,

What are your numbers for purchase / rehab / arv.  What do your financials look like ( down payment / reserves etc) That might help determine some options for you. 

Hello BP Community!

An opportunity came to me from my PM. She has an out of state investor looking to dump his portfolio. Properties are in Washington State and the city doesn't see much appreciation in fact some may say it's a depressed market. I like it, rents are solid meet 50% rule, good blue collar work force (C+ to B-) it's a cash flow market rather than an appreciation. 

Dilemma: Major Capital expenditures! Duplex (4/1.5 each unit) long term tenants (12/15 years) needs the following: New roof $20k. Interior is another topic but tenants don't seem to mind the interior. I'm afraid I won't be able to refi / insure as is. 

Numbers: Seller says appraisal is at $95-100k. I have a duplex on same street and I just fully rehabbed (roof plumbing electrical floors kitchen bathrooms)  and I will only get about $120k appraisal value (due to lack of duplexes available and sales history for comps)

- Seller Mortgage: $69k on it with a 15 yr arm! Right now approx 3.5% PITI @ $667 a month

-Income currently $1125 ($500/625) market rent $1350-1450 combined 

- Seller wants: To walk away with $20k cash

Options: 1) I take over mortgage refi to a fixed and give him $7k cash and dump $20k for new roof

2) land contract with nothing down balloon payment in 5 years to his asking price of $95k and an interest rate of 5% 

Thoughts?

Hi @Joseph Canini ,

Have you tried going to the city permit department where your project is at and asking who do they regularly see filing for permits (more permits = more biz = more clients) Another route might be your local housing development or city housing authority, if you are in a depressed area of the city they might offer cheap loans for rehab and might have a list of GC's are approved to work with their programs