All Forum Posts by: Geoffrey Jones

Thanks@J Scott.

Ive only so far been able to only find local community banks but what about portfolio lenders that are nation wide. Do any exist or do they most always need to be local to the city where I am buying? 

How much would be fair to compensate my credit partner for a one-time cash deal or equity if that is the way to go? Also should this person have a fair amount of knowledge of real-estate investment or can it be anyone.

Ive come across a situation where it looks as if most portfolio lenders are only interested in doing business with me only if I live locally in the area. Most also will allow me to use their services if I have a business partner in the area. My question is.

How would I be able to structure a deal like this, where I am finding the deals myself, buying all cash and doing the repairs. If I were to get a partner in the area how would I compensate them for being a stand in guy/gal. It looks as if most portfolio lenders would need them to also guarantee the loan even if my credit and income are excellent.

I have found a few portfolio lenders that will work with me but again they are very few. In order to expand and acquire more properties I need to be utilizing multiple financial institutions to reach my goals. Correct me if I am wrong.

Is there a way around this? Also is there a way for me to actually be local in another state such as a virtual office or company registration in that state?

What strategies are out of state investors using today to accomplish this?

What is the anticipated ARV for this property?

I have a property that was apprised for 200000, I went to a hard money lender and it seems that they will only lend 181000 on the property. This tosses off my numbers significantly. Do all hard money do this? What can I do to work around this issue?

I actually purchased these from a local wholesaler after some negotiation on my part. Also I received the appraisal reports for westgreene and it came in at $181000 ARV. I was hoping more for 190000 - 200000 so this came in a bit low. This now tosses my numbers off a bit. Here are the properties they used in the report

21319 Park Wick Ln Katy, TX 77450
Sales Price $188,500
[email protected]%
64.70/sqft

21611 Park Wick Ln, Katy, TX 77450
Sales Price $169,000
Cash Sale
58.50/sqft

21331 Park Wick Ln, Katy, TX 77450
Sales Price: $190,000
FHA @ Mrkt%
66.64/sqft

20911 Park Brush Cir
Sales Price $200000
VA @ Mrkt%
69.20/sqft

Here are the repairs that were included in the ARV calculation to bring it up to value.

Exterior paint & rotted wood repair 2,400.00
Interior paint & drywall repair 3,300.00
Kitchen update - appliances, granite counter top. 4,500.00
Bathroom update (1.5) 1,500.00
Flooring 5,300.00
Lighting & electrical 1,800.00
HVAC check 350.00
Misc Expense 2,000.00

From my perspective I think the repairs are way over estimated so I am having a contractor go out there and validate the repairs.
Also there is a cash transaction sale used for one of the comps. That seems more like a wholesale deal to me. Also some of these sales occurred back in January of this year. Are they allowed to do this as I see within the last 6 months properties are selling in the area 190000+.

I did the math and If I were to do this deal with hard money it will require almost $30000 during the life of the project. And after financing I may have 15000 still locked  up by the property. 

My Purchase Price 135000
Lender will lend me 126000

So I will have to cover 9000

Lender fees and closing roughly 10000 including origination fees
My estimated repairs 12000

Total out of pocket is $31000

Then when I refinance @75%

Lender will finance 135000

Estimated $3000 in refinance fees

Seems to me I will have over 20000 locked up in this deal.  Untill I resell it at retail for 180000 - 200000.

To me this does not sound like a good deal unless I skip the hard money and purchase all cash. Let me know what you think. How can I get this deal to work. Private money seems like a good idea at this point in time to me.

Looks like I have a buyer for Green Gate. I have gotten numerous offers above asking price but I took the first one that came along. So right now I am waiting on inspections on Westgreen. I'll most likely buy and hold this one. However I am waiting for my contractor to give me final quotes on the repairs. I am estimating that it will cost about 15000 in repair. Ill update you all once I get the final numbers.

I'm still waiting on the inspections to be complete. 

In the meantime here are my options. 

• I can buy and hold this property which was my initial goal
• Or flip this to another investor
  
  • 21530 Greengate Spring TX 77388 - 155000 All cash
  • 1211 Westgreen Blvd Katy TX 7745 - 150000 All cash

  If any one is interested just let me know as I may consider it. I think that would be fair amount based on the I'm taking most of the risk getting appraisals and all.

• Or Flip it retail at market value after repairs. 

In any case I would be happy to make a little and move on to the next deal. Let me know if anyone is interested. 

@Michael Ran  Thank you so much for the reports on Green gate they are dead on. Looks like 1600 rent looks like a good ball figure for rent. I put in the new figures along with the rent and taxes I just might be able to break $300 cash flow if I refinance with the right lender. 

@Paul Ewing , @Waylon Themer  you guys are dead on with the taxes.

I may still end up with some of my initial funds locked in the deal but considering the neighborhood I may just stick this deal through. Plus I've learned so much already about the neighborhoods and what buyers and renters want in the area. 

You guys are all awesome. I went ahead to get an appraisal before making the final decision. At the most conservative I'm looking at 185000 to 190000 ARV for Green Gate. Ill update you all on what the appraisals come back at.

Anyone have any recommendations of Portfolio lenders in the area. I'm looking for 80% ARV with no seasoning if possible. I have a few under my belt now at 80% and are already in process for a pre-approval.

Bird dog for them. Ask them for guidance. They will show you everything you need to know to find deals. Help them and they will help you.