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All Forum Posts by: Chase Maher

Chase Maher has started 3 posts and replied 51 times.

Post: What are typical response rates in high income areas?

Chase MaherPosted
  • Investor
  • Florida
  • Posts 54
  • Votes 22
Originally posted by @Nate Si:
Originally posted by @Chase Maher:

Hi Nate - Typically 1-3%, some say as high as 5%+ but I have not experienced that. I think they key is a targeted list and repeat mailing, at least 3x in 3 weeks.

Distressed sellers, NOD/NOT/Mortgage Lates. Absentee works... driving for dollars and creating your own list.

I am in San Diego, it works here, though it works best at median home prices or just under.

 Thanks, Chase. That's very helpful. So you mail them once per week for 3 weeks? Do you send a different mailer each time, referencing the earlier mailer, or just send the same thing?

How do you keep track of who you've mailed? Just excel spreadsheets, or something more sophisticated?

 Yes 1x per wk for 3 weeks. I am now experiencing with bi-weekly for 6 weeks. It is all about split testing. Slightly different mailer and I typically reference, yes.

Excel, it works fine!

Post: What are typical response rates in high income areas?

Chase MaherPosted
  • Investor
  • Florida
  • Posts 54
  • Votes 22

Hi Nate - Typically 1-3%, some say as high as 5%+ but I have not experienced that. I think they key is a targeted list and repeat mailing, at least 3x in 3 weeks.

Distressed sellers, NOD/NOT/Mortgage Lates. Absentee works... driving for dollars and creating your own list.

I am in San Diego, it works here, though it works best at median home prices or just under.

Post: Real estate license now or later?

Chase MaherPosted
  • Investor
  • Florida
  • Posts 54
  • Votes 22

For the situation you laid out in the OP, no need for a CA RE License. Unless you are listing properties, there's nothing you can't do with a real estate license that you can't without... unless you are looking for expired listings, confidential remarks etc.

If you need any of that, feel free to give me a call, I am happy to help. But, its not needed and costs money to obtain/keep the license.

I know plenty of wholesalers and investors that don't have one.

@Karen Cook As @Christopher Telles mentioned, I do lend in Houston. Jet has a great product, I have seen some of their deals the past. My rates are much lower if you don't mind working with someone outside of the local Houston area. Feel free to contact me anytime when you are in need of a HML or even to analyze a deal with you. Good luck and I hope you have wonderful success in the future.

Post: New member from San Diego, California

Chase MaherPosted
  • Investor
  • Florida
  • Posts 54
  • Votes 22

Welcome to BP. Local SD guy here as well. Good luck to you!

Post: Hard money

Chase MaherPosted
  • Investor
  • Florida
  • Posts 54
  • Votes 22

@Aaron Breiding

From my experience as a HML, thats a major red flag. There are plenty of trustworthy lenders that don't ask for the upfront fees you mentioned. Some lenders are in it for themselves i.e. foreclosures and collecting appraisal fees. However, many HML's and PML's will not cost you a dime until you have a good project in escrow and will be closing. Most of the lenders that promise 100% financing are to good to be true and most likely in it for the former rather than the latter. If you have any questions or concerns with your current lender feel free to PM me, its pretty easy to spot a good quote from a bad one. I don't lend in Ohio, it would only be simply to help a fellow BP member from getting the run around. It happens too often.

@Brandon Hood

Welcome to BP. San Diego County is an amazing market if worked properly. I have no doubt you will be successful. PM me for another contact as a cash buyer if you would like. 

@Jaime Huizar Welcome to BP, fellow SD guy here and maybe our paths will meet down the road. Let me know if you have any questions or need another opinion looking at a deal.

Cheers

@Jacob Casarez I will try to answer your questions as best I can, and they are my professional opinion - not to be taken as the end all be all !

What are the best ways to use HML?

The best ways to use HM is when you have some cash, a private lender or your own equity in a property to secure the 20-30% needed to use HM available. HM is a great way to not drop all of your funds into one property, allowing you to buy more projects and in turn increase your profits. With the market getting tighter, many investors are turning towards quantity over quality. This can be a great choice, or a massive mistake. If you are experienced and have it down to a science (Disclaimer: There will ALWAYS be unexpected bumps in the road) you can tighten up your margins/ return. If you are new, and don't have a mentor, you may want to start with one project and then another before you start acquiring multiple in a short period. The best ways to use HM are short term investments i.e. fix n flips, construction loans and bridge loans. These allow you to either sell out or re-finance when the term is up. make sure you use a lender that has no pre-pay penalty.

And is it a solid option for Buy Rehab Rent Refinance strategy? 

YES, a very solid option. First, do your homework on the re-fi options. Make sure you have studied up on this and ALWAYS have another exit strategy ready in case something falls through. Make sure your HML is aware of your intentions before funding the deals. I have heard so many horror stories of borrowers getting stuck in a deal with a HML that had bad intentions from day 1. You want to do this re-fi around 6 months to avoid more points and interest payments, so make sure your rehab can be done in time.

Hope this helps. If you have any questions or want another opinion on a deal feel free to contact me!

Post: How does getting hard money work?

Chase MaherPosted
  • Investor
  • Florida
  • Posts 54
  • Votes 22

@Elizabeth Matos I am unaware of the lender and disclaimer I am a lender funding California.

From my experience and the process with us at Lantzman Lending, the address is needed so that we can properly and accurately comp the house and come up with an ARV or After Repair Value. This helps us get an idea of funding, generally 65-70% of this ARV.

Another way HML's look at deals is by the Purchase Price. Usually lenders fund anywhere from 70-80% of the PP and then 100% of the rehab.

Like I said, I do not know anything about that Lender, but be on the look out for a couple things to insure they are credible and fair with you.

*Do not pay any upfront fees

*Do not pay excessive "Junk Fees" - There shouldn't be anything more than a doc fee, if any, some lenders charge nearly $3,000 in these junk fees

*Make sure you are not paying interest on the rehab money while it is IN fund control (If applicable)

*Make sure there is no Pre-payment penalty. This allows you to pay off the loan early with a sale or a re-fi without being penalized

These are just a few tips. I hope it works out for you and feel free to contact me if you have an questions.