All Forum Posts by: Brandon Vanderford

Most "land" loans are essentially construction loans that turn into mortgages (construction-to-permanent loans) once the dwelling/structure is completed.

A "buy and hold" on land is essential prospecting. It's real estate prospecting. So that will need to be financed differently (i.e. cash, hard money, etc).

It will also depend in if it is raw land, or undeveloped land (assuming it's not already developed).

That is helpful information, David. Thank you.

1 Vote

I have used Appfolio for about four years, and would recommend it to anyone with 50+ units. They are constantly improving their software.

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Upstate New York, New York

Quote from @Dave Skow:

@Brandon Vanderford- land loans are not that common ....the lenders that do exist will require large down payments / ( 30% or more ) / have high rates and fees / likely be short term and also require improvements be on site ( sewer / septic / water / elec) ...your best bet will be a smaller to mid size credit union or bank located close to the subject property

Thanks, Dave. That is increasingly sounding like the best option.

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Quote from @Grace Maxwell:

We are one of the lower down payment options in that area at 20% down for 740+ credit - I have not heard of anyone with 10-15% down. Can he borrow against another asset?

Hi Grace, thanks for the reply. Can you DM me with the contact info for your team? He might be able to make a 20% down payment work...

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Quote from @Adam Bartling:

@Brandon Vanderford this is possible if you have construction plans ready to build for a Owner Occupied home. Non owner occupied the land can still be put into the loan but be prepared to come in at 25-30% DP.

Hi Adam, thanks for the reply. My brother is unable to build at this point in time. Unless an owner-occupied "tiny home" would potentially qualify. That could be an option...

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Quote from @Erik Estrada:

Most land loans require at least 50% down and are short term. What is the goal in getting the land? Ground up construction?

Hey Erik, thanks for the reply. He has intentions to "buy and hold" for the time being. So that option might not work for him.

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My brother is investigating a potential investment property that could have significant upside if certain easements are obtained. He intends to keep the land for personal use initially, however. The purchase price would be around 200K. I am fairly unfamiliar with land loans, and my brother is only capable of a 10-15% down payment at this time. Do any lenders on this forum have advice on loan types or options? Thanks in advance!

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If the applicant meets your rental criteria, then I would suggest that you go for it! No need to keep your property vacant "just in case" an even better applicant comes along. Especially since doing so could be seen as discriminatory by the state, as others have observed.

If this applicant meets your rental criteria, but you are still not comfortable with the application, then I would suggest raising the bar on your rental criteria.

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Baltimore, Maryland

For about three years, I managed around two dozen MTRs in Durham. They were all within the same condo association, however. That being said, I am listing several addition MTRs effective this month. I would be happy to answer any questions that you have, based on my (limited) experience in the market.

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Raleigh, North Carolina

Quote from @Rea Cooper:

Quote from @Brandon Vanderford:

Hey Rea, some of your strategy will be dependent on whether you are aiming for immediate cash flow or long-term appreciation. I see that you are posting here in Raleigh. I am very optimistic for future appreciation in the area. However, the prices are high, and your immediate month-to-month cashflow might be better elsewhere.

Another Wake County specific tip. The Raleigh area tends to have far fewer multifamily homes than the average, similar-sized city. You might look at Durham, instead. That will open your options a bit.

If I were in your shoes, I would probably act sooner rather than later, if the numbers on the house hack make sense (just because I like to take action rather than wait). Of course, I cannot predict what the house market will look like in 12 months, so there might be some advantage in waiting.

Hi Brandon, thanks for the response! I am in this for the long haul so even if I only cash flow $50/mo, I am okay with it since it is my first property. Also, funny enough, I am looking at investing in Durham mainly. Even in Durham though it seems multifamily inventory is nonexistent unless your willing to pay 700k+ (which i don't have yet). I see you're a property manager, just curious, have you heard of any property management groups that do rent by the room in the area?

The long-term strategy sounds ideal, especially with the continued growth in the Triangle (e.g. Apple coming to RTP, Google coming to ATC). Multifamily in Durham can still be found at a better price point. For example, a couple months ago, some friends and I crunched numbers on a duplex on North Roxboro (listed for 280K). We did not move forward with it, but the opportunities are there.

Effective this month, I have begun doing some work in the room-by-room management space. I have managed STRs for over three years, but am new to room-by-room MTRs. Follow up with me in three months, and I should be able to provide better feedback!

0 Votes

Raleigh, North Carolina

All Forum Posts by: Brandon Vanderford

Brandon Vanderford has started 6 posts and replied 106 times.

Post: Land loan with 10% down?

Post: Property Management Software

Post: Land loan with 10% down?

Post: Land loan with 10% down?

Post: Land loan with 10% down?

Post: Land loan with 10% down?

Post: Land loan with 10% down?

Post: Should I always take multiple applications

Post: Medium-Term Rentals around Raleigh?

Post: Buy SFH now or wait for MFH