All Forum Posts by: Bryan Hartlen

@Brian Metz  it was my misunderstanding but I know what you mean ;-)

@Matthew Wright  good question.  Thanks for posting.

@Brian Metz thanks. I got it.  I thought you were saying the bridge loan would change the how the units are seasoned.  In your case, having the ability to borrow funds for rehab would allow you to start the seasoning clock sooner and get to your refi requirements sooner.  Thanks again.

 Brian, can you explain how a bridge loan would have helped you season your value-add stabilized rents?

@Gil Ganz do you or others look for a minimum P&I?  For instance when we create seller financed notes we try to keep the P&I >= $300; and we'll reduce the term as low as 10 years to maintain that P&I.  All other variables being equal, would you prefer to purchase a longer term over the higher P&I?

True, but knowing that it’s non-performing or re-performing (and what those terms mean) is a quick filter on the assumed risk.

@Adam Philpot

one that hasn't been mentioned  https://www.bestplaces.net/

@Gil Ganz and @Chris Seveney Do either of you differentiate between an original note or a loan mod?  As an example, if a loan modification is current and has 12 months of on time payments would you call that a performing note?  I would.  

The more people I talk with the more it appears that there isn't a firm definition of performance; or folks are liberally using the terms depending on whether they are buying or selling.  

Is there a trusted source that defines these terms?  If not, how is your definition different from mine?

• Performing:  all payments current and on time over the last 12 months.  Could be an original note or a loan mod.
• Re-performing: current but has missed one or more payments over the last 12 months.  Could be an original note or a loan mod.
• Semi-Performing: not current but making regular payments (eg 1 or 2 months behind for the last 6 months)
• Non-Performing: not current, making no payments or sporadic payments.

I agree with all the comments on getting the details on income and expenses (T12). Your broker should be able to get these for you (it is there job).

The only other thing I’d use in the offer decision is what is the market’s cap rate?

Thx.  Got it.  We're targeting value add properties so our budgets typically include 8 - 10k or more for interior rehab plus exterior and mechanicals.  What we haven't figured out is a good starting point for on hand reserves?  If it's a planned flip exit we model this very thin with minimal risk.  If it's a hold then what?  5% or some amount / door?