All Forum Posts by: Branden Jordan

Being an investment Realtor in Pinellas County, I am biased to the area. You are correct though. This area is not the easiest to find a deal. It is the most densely populated county in FL. There are some deals for the BRRRR strategy everywhere, but it is a matter of finding them. It might be best to look at a different market for your first deal. I have invested in I think 6 states now. It does not matter to me much where the property is, as long as the numbers are good. Get to know your people in the area. I have flown to the town/city I am interested in just to meet people. Write it off as a business expense. Meet some contractors, wholesalers, realtors, lenders, neighbors, etc... Boots on the ground will never be replaced 100%. Sometimes you go to a place that you like the demographics for and find out it doesn't fit the research and due diligence. Don't be afraid to take the first step. Sitting and watching is the worst thing to do in the investment world. If you know anything about stock options, you will learn there is a "time value of money."

 I found funding for the 2nd lien position. You are right. I was looking for some money as a buffer. I had the down-payment covered. I just needed to get a headstart on closing-costs, and money for contractor before the first draw.

 There are opportunities in both Pinellas & Hillsborough Counties. I stay away from flood insurance, but eventually, I feel everyone will pay flood insurance in FL. When there is a storm, the entire state sucks up the losses by raising premiums. There are some very lucrative properties though that will need to carry flood insurance. This is a preference of each investor. If I were to pick one as you asked, I would stay on the beach side of Tampa Bay. That is Pinellas County,and where St Pete is.

We have a title commitment for insurance.

I have been under contract on a duplex ready to close, but the second investor has ghosted me and the lender. We need $30,000 to close. It will close in just a few days once we get an agreement notarized. We are willing to pay $5,000 up front upon entry of the deal. We also will pay 13% per annum paid monthly for the duration of the project. It is a very light cosmetic rehab, Just enough to get better rent rate. The project will only take a few weeks of rehab but will refinance at day 91. Federal guidelines do not allow loans like this to be refinanced sooner than 90 days I'm told. How would you try and find a gap lender? Facebook is full of scammers and a waste of time. This is a very legitimate deal and quick money for the gap lender. They will be second in line behind the first mortgage.

Florida is "cooling off"? Well, I guess this is a relative statement. Cooling off here can still be very hot. Things might not be molten red hot as they were 2 years ago, but where I live there will always be high demand. Where there is high demand, there will be a shortage of properties. Pinellas County is the most densely populated county in FL. Investors are knocking down multi-million dollar homes, to build bigger and better multi-million dollar homes. Apartments are a huge thing, and they can't put them up fast enough to keep up with demand. This keeps rent high, and SFR are always going to sell here. I love this area. Please reach out, and lets collab. I would love to help a fellow midwesterner out.

 I was born in Indiana, and grew up in FL. There is a big difference between the Midwest, and Tampa Bay Area. I would like to chat, and see if I can help you in the Tampa market. I am in Pinellas County. I am part of an investment group in Tampa. We have a complete team of professionals to help beginners and the multi-unit property owners with full service property management. Lets talk.

 How is it going so far? Did you make your 1st purchase?

 Hello Iana-

I just saw this post, and you will be in the area tomorrow, it seems. Hopefully, you were able to link up with a reputable Realtor in the area who knows how to find what you and your husband are looking for. Definitely feel free to reach out to me at any point to help in your search. I see my colleague Josh responded to you prior. Were you able to get in touch with him? We are with Graystone Investment Group and have access to some off-market properties you won't find elsewhere. Let me know if there is anything I can be of assistance with. Click here!

Sometimes when a deal is structured, both Hard Money Lenders(HMLs) and Private Money Lenders(PMLs) are involved. Let's say, for example, you find a property for a $125K purchase price, and it needs $50k in rehab but will sell for $250K. You have 20% of the purchase price but can't cover the "GAP." You may go to a PML to bring the needed cash to close. Most lenders don't like sourcing funds from more than 1 PML. Two sometimes will work, but three makes the underwriters nervous. The 20% downpayment you have($25K) brings the HML to $75k PLUS costs/fees. Most home lenders won't give loans less than $100k. This is OK because you must borrow the rehab funds and pay for all costs associated with the entry AND exit of said property. Just for easy numbers, let's say the cash needed to purchase is your $25k downpayment PLUS another $25k in costs. You may want to look for a PML if you can handle the project. The PML will want a substantial payout, but think about how the deal would not be possible without them. If they are truly a silent partner, maybe a 50/50 split is too much for the PML. It is on a deal-by-deal basis. It comes down to what each person brings to the deal.

Where do you find PMLs, and how do you approach one with a deal to make it lucrative enough for them to help you fill the GAP?