All Forum Posts by: Callum K.

@Kyle Critchnau I am looking to get onto several wholesaler's lists.  Are there any certain types of homes you wholesale?  shoot me a PM if you need investors/buyers.  Same goes for anyone else in the Tulsa Metro.

@Francis A.  I read that as well.  I have lived in OK for 34 years and until about 8 years ago had never been in an earthquake.  Now there is news of them hitting sometimes 2-3 times a day.  All have been relatively small though.  I doubt they will pass legislation on building requirements here.

Hey Michael. Welcome. IMO our area produces some great cash in cash returns. We don't get the value of home appreciation but rental rates as a ratio to acquisition prices are really good here. Good luck!!!

I've been looking at properties there as well but haven't pulled the trigger.  My concern has been liquidity in that market.  I do have a friend there that has a rental property.  Let me know if you have any questions and I can ask them.

So I was listening to a podcast yesterday and I heard someone mention that when you borrow for loans in excess of 4 mortgages, lenders require 6 months cash reserves for the sum of all mortgage payments.  They went on to mention that it results in quite a bit of money being set aside for reserves.  Although I personally believe that you can never have too much cash, I do understand the hurdle with saving this kind of money just to get a loan.  I am in the process of acquiring my 9th financed property (trying to get to 10 before rates increase) and on my 5th house I was able to convince my lender to use my 401k plan for my cash reserves.  It took a little convincing and I had to provide them with the terms of withdrawing money should I need to use those reserves and the lender took 60% of the account value. 

 I thought I would share this in case others find themselves in a similar situation.  Just because your 401k is in a retirement account, doesn't mean its necessarily an illiquid investment.  Now, for each property I buy, all i have to do is give them my statement for my retirement account and since I am too young to be withdrawing from my 401k the 6 months reserve is no longer an issue.

Zach's comments are spot on.  I made an offer on a property once and they did the same thing.  I didn't have a good feeling about the response so I withdrew my offer.  It turns out the house sat on the market for another few months.  My takeaway was that they were trying to be greedy with me and wanted to bump me up a bit more and they lost the deal because of it. 

I would check with a relatively small regional bank or credit union. Where I live, brokers usually sell loans at much higher costs. As an investment property you are still able to acquire conventional loans and depending on how you structure it, you might even be able to get an FHA loan if you are trying to put little down. Most loans get sold to Fannie Mae or Freddie Mac so most banks try to adhere to their criteria for the most part.

Matt,

What type of property are you looking for? I have houses in Norman, OKC, Yukon, and all over Tulsa and will be only too happy to give you ideas for costs for SFR rental properties.

Pretty much any bank will work with a lender for a commercial loan but those terms will be crappy.  If you are looking for a single family home, I would look at a residential loan which would be the consumer side of a bank

My properties are B+ or A and average rental terms are 3-4 (mostly two year leases and a one year option)