All Forum Posts by: Bud Leiser

Syndicated deals might leave ~10% for the person who finds and structures the deal, maybe another 10% for managing it, and 80% go to the cash investors. 1% interest and 10% equity on any amount of a cash partner is a joke. Not only do they expect their money to be repaid with a cashout refi and maintain their 80% equity but they want charts that detail by when and their MIRR

lol 10% and 1% interest and she's not even willing to drive an hour and half to a REIA.

2 Votes

Originally posted by @Jean G.:

@Bud Leiser

I think St George is completely overpriced right now. I've been looking there for several months and haven't been able to find anything that makes sense (whether SFR or MFR) except maybe some very old properties in the Hurricane area that need a lot of rehab. I've been looking at Cedar City which is slightly better, ie I can see more often things that "almost" make sense...

Jean

Cool thanks for the tip. I guess there's too many Las Vegans pouring money into South Utah so the Utahns know less than we do? ;)

0 Votes

Originally posted by @Jay Hinrichs:

@Emily Powell

or like last May in Chicago the ANIME* convention now that was a group of colorful

Just fixing it for other readers ;)

0 Votes

Originally posted by @Gilbert Dominguez:

First of all you waited way too long to address this issue. You should have given them some kind of notice that you need 30 days, they should notify you 30 days in advance of their lease being up as to whether they intend to sign a new lease or vacate the premises.

You have the right to actively seek another renter or someone else to lease to. Do not put yourself in a position where you are not sure if your property will be leased or not through the winter months. Since you have waited until now I would notify them to either sign a new lease or let you know if they intend to vacate the premises. Simple as that the rest will be just your business as usual. Next time do not wait so long.

Based on your response I think you overlooked the deep wisdom of his post.

Before the lease expires you should speak with the tenant and ask if they will renew their lease. This is typically done before/in the last month of their lease. If they say no, then you begin marketing the property and when you find a new tenant you give the old tenant notice that they can't stay past their lease/end of month.

Just trying to help and all too often I see people hear without listening.

GJ Gilbert!

0 Votes

It's usually filled with people who like sleeping with a roof over their head.

All jokes aside:

International Backpackers

Business Travelers

Family Tourists

Young Couples

Homeless/Felons/Evictees (anyone that can't pass a background check to rent a house)

At some point you want to narrow your location/price point to get a better understanding of client mix. Are you talking about cheap motels, high end hotels, weekly suites with kitchenettes?

0 Votes

This is a great topic, love to see more strategies. But for your particular situation, if he receives an anonymous offer do you think he would recognize it as you? If so you might need an actual straw man, someone pretending to buy it for their own benefit.

It might be as simple as funding an LLC, giving someone owner/ship/manager rights to the LLC, writing an IOU back for the cash, and pre-approved contract to buy property at X address and then that person exits the LLC and turns it back over to you for a fee.

So either way you will need a Lawyer involved at some point, so maybe just best to hire the Lawyer to be the straw man.

0 Votes

Originally posted by @Travis Lloyd:

@Bud Leiser that may just be my experience about the "cash-out" phrase. But recently I have noticed more banks saying they don't want to do a full cash out. In these instances, we have purchased properties and put significant amounts of money into them. So the valuation is above the combined total of purchase price + renovations, sometimes by $2-3m. But as soon as they hear "cash-out", they're not nearly as excited. They will find out one way or another - but as someone above suggested - its good to have some reason you're taking the money out. And "I'm cashing out" isn't it. That's all.

I just bumped into someone who said the LTV is 65% instead of 70% because it's a cashout. I've since changed my conversations to "refinance" and not "cashout refinance" . Thanks for the heads up.

Others take note, he was right!

0 Votes

Originally posted by @Travis Lloyd:

Ask about origination fees, how much they will need in escrow to BEGIN the process, and an estimate of other fees/expenses associated with the refi. You could visit three banks who all offer the same LTV, loan amount, and rates, but the expected net proceeds could differ wildly. Shop around.

And when the time comes, if they are pulling an A1 or A2 survey - request copies. You never know when those will come in handy later on - and they are harder to get from the bank later on.

Oh, and I wouldn't lead the conversation with the phrase "cash-out". Maybe leave that out of the vocabulary.

Yup I've been asking about the fees. It can get pretty pricey. I've called 21 Lenders today. A few no longer do <500k loans. Several we're voicemails. The worst I found is 1% a month interest only 18 month loan. Ewww.

Educate me: Why wouldn't I lead with Cash-Out? The product is literally called a Cash Out Refinance on their Scotsman Guide listing.

Will update you guys later with spreadsheets. Waiting for lots of callbacks.

0 Votes

Originally posted by @Marco G.:

They will likely want to know your intended use of the cash out proceeds as well, so keep that in mind. It's not binding, obviously, but in my experience they always want to know what you want to do with the money.

Good luck!

I should probably tell them something besides Hookers and Booze. I'll go with Rental Property Acquisition instead, ya know to throw them off the trail.

1 Vote

Originally posted by @Darren Eady:

I would ask them about bank overlays - underwriting conditions that the bank has. They may have a condition that you have owned rentals for a number of years or that you have at least six month's rent in your account as a reserve. Each bank has different overlays (underwriting conditions) so it's good to find out what they will need.

I would then check with at least one other bank and get the same info. from them to compare.

Thanks Darren!

0 Votes

All Forum Posts by: Bud Leiser

Bud Leiser has started 1 posts and replied 50 times.

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