All Forum Posts by: Tyler H.

OK, so when I search for his name on this site NOTHING other than his market place ads and THIS ad come up. As previously mentioned, I found one through google cache that has since been deleted.....

Naturally my next question is why is BP deleting those posts? It seems BP would want want to safeguard the community...

I vote for a new category for BPers to post their CAUTIONS and reported SCAMS. The RE is a HUGE industry that I am sure is filled with TONS of scammers, fraudsters, and everything in between. It would be invaluable if investors embarking on a new venture could at least reference the community during their due diligence.

Food for thought! Happy Investing friends! Stay cautious....

OK, so I was contacted from John Botros here on BP claiming to be able to assist me on my deals.... I have a pretty good fraud radar and right now its going off like crazy.

Flag #1 - Cell # with unusual automated VM message. Here in the states, *most* people and reputable companies will use one of the main cell carriers. 

Flag#2 - When I reversed the phone #, I see it is a VOIP company. Not many good reasons a successful lender would be using this.

Flag#3 - During our conversation, his phone kept cutting out every 2 minutes. He claimed he needed to call customer service to fix, but I think this is some sort of limitation with the VOIP service....

Flag#4 - Kept asking me redundant questions that didnt make sense, showing a lack of knowledge in the lending industry.

Flag#5 - Googling his name came back with a plethora of criminal cases/activity involving this name in other countries. Most relate to fraud. Coincidence? Perhaps.....

Flag#6 - Google "John Botros""bigger pockets" you will see a post by @Matt Motil here warning people about this character and his experiences. The post was since deleted by BP, so you will have to click the small dropdown next to the link on google to view the cashed version. 

BP ADMINS - Why was this post deleted? This fraudster is using BP to reach out to investor and defraud them. I don't think that BP should enable this activity....

So I may be CRAZY, or PARANOID, but who here can vouch for this individual or prove otherwise?

ALL Investors, regardless of who you are working with, ALWAYS do your due diligence and ALWAYS suspect foul activity if you are ever asked to pay for something up front combined with other red flags!! 

What rates/terms for 65% LTV?

I have a client that is seeking a 2nd lien on his rental property so he can purchase additional RE. He is taking the hard money approach because he has a SS on his credit 1.5 years ago which takes him out of conventional Refi's.

Any Hard Money lenders out there that will do 2nds? to 70-75% LTV?

Any Private money or Portfolio lenders that will underwrite a cash out refi to 75% LTV with a SS?

Property: Value $210K / Existing 1st $100K / Seeking $50K cash out

Cash flowing rental with $1750 direct deposited from housing authority....

Any suggestions or recommendations would be appreciated, Thanks!

Cross collateralizing via Hard/Private 2nd liens on the SFH to provide necessary capital sounds like the best scenario to me. Would any other Private / Hard money lenders out there entertain a deal like this?

Thanks to those who have reached out so far. I want to make the best decision, so still looking for everyone's input/suggestions.... Thanks!

I will try and keep this short and sweet. Any help, advice, or referrals would be appreciated...

What I HAVE:

• The experience. 10+ years investing in and managing SFH rentals. Also a Realtor involved in the transaction.
• A GREAT deal to acquire a distressed REO 15 unit apartment. Have contract @850K, As-is value around $1.1 - $1.3M.
• Solid business plan including my experience, strategy on how I will turn the apartment around, and exit strategy. (available to those interested)
• Great personal credit, around $280-300K in EQUITY. (rental houses)

What I DON'T HAVE:

• The liquid CASH
• Access to the CASH via private money

What I NEED:

• Way(s) to acquire this apartment
• Method to generate necessary funds
• An investor / Partner

What I Have FOUND:

If possible I would like to make this acquisition without giving up any equity, however at this point I am open to any beneficial solutions. I have reached out to a few fellow BP'ers and this is what I have found thus far.

1. 1. Blanket (portfolio) Loan. Combine 2 SFH with equity with the acquisition of the Apt. I have worked up this scenario in my biz plan, and I have a few pros/challenges I see; A) I would be sitting @ around 80% LTV portfolio WIDE. LTV would depend on valuation method, so most lenders will go off purchase, if I found one to go off value that would be golden. B) Im told that this is not a popular loan product and it will be difficult to find a bank to do this.... (by a residential broker) Could be unfamiliar?

1. 2. Bridge loan until I get the Apt stabilized and Refi out. Best I have found is that if the deal is 20% under value @ purchase, I can bring only 10% in. I would then need to bring in or acquire around $100K private or hard money. Higher rates, but the prop will be stabilized and new financing taken out 1-2 years later.

1. 3. I spoke to a lender (broker) who claimed he could get me true commercial rates (3-4%) stated everything, no tax returns, Min DSCR 1.15, just NEED 25% down. Sounds awesome if he can pull it off, BUT I dont have the $100K, let alone $270K!!

My dream scenario would be a private/hard money lender that would collateralize by using either a on the APT, or 2nds on my SFH . Most hard money will go up to X LTV, which kind of leaves a lot of the equity I need un-tappable. So second best would be a private investor on a flat rate. (I dont know any). 3rd would probably be a blanket loan @ a good rate if one exists or if I could make it happen. And then 4th would be taking on an equity partner.

Any private or hard money lenders have a solution for me?

Any smart people want to suggest their creative ideas?

Any investors out there want to go in with me?

BTW, since you read this far, both SFH that I would pledge as collateral have great 30 year fixed rates, so I don't want to get rid of those mortgages unless i absolutely have to.

Kelly, Im a Realtor in the AV. Dont forget that you need to offer compensation to the selling agent.... Usually 2.5-3%. I wouldn't mind working on a reduced commission, but it would have to be set up as a percentage, not an hourly agreement.

The reason you probably haven't gotten very good response is the fact that the average sales price here is very low.... Most sales are under 200K. After a Realtor takes into consideration his (her) insurance, broker cut, MLS access fees, and the inevitable answering of phone calls, responding to offers, etc. Now drag this on for 30-60 days with no guarantee of payment and you can see why Realtors want, or need, to get compensated reasonably.

In a 500K+ market, there is a whole lot more room to negotiate commissions, but here even a full 3% chops down to very little when we get our check.

If you are interested, I will do my best to work with you. Please give me a call.

818-674-7523

Yes it would be a commercial loan, the only problem with this particular deal is that it is an REO. I dont know, but I would guess that the bank doesn't want anything to do with this property EVEN IF they would carry a second....

For all you investors that pick up property below "market value"... Is there a way to PURCHASE an apartment and utilize that "equity" as part of my down payment?

EASY EXAMPLE. 

REO Apartment that APPRAISES for 1M

I acquire for a purchase price of 900K.

So assuming I could find 80%LTV, and I HAVE 10%, Is it possible to use that extra equity for my remaining 10%?

I understand traditionally banks will go off of COST/PURCHASE PRICE if it is lower, but maybe others have experience / suggestions. 

If not, what solutions do  I have? Use HM or bridge loan for aquisition, wait 6 months, than refi?

THANKS

I found multiple properties for sale that seller is willing to offer short term financing.... I have several SFH rentals (S8) and have been looking for ways to expand, but have been stumped on the financing aspect. I was searching for seller financed deals when I came across these. Here are the basic stats... Looking for creative ways to structure deal so that I can obtain these properties with the least amount out of pocket.

Investor has up to 12 SFH local to my neighborhood. I am told he will negotiate a bulk package. Houses are 3 and 4 bedrooms, all currently leased sec8. (Im very knowledgeable about S8 so this topic is not about it). They are all listed for about 150K-200K, but arent selling because they have tenants and cant be shown to "retail" buyers.

I am a realtor, so I have a bit of an edge for negotiating a good price... Will make some money back off of sale, and will be able to sell if necessary.

Any deal structures? Obtain portfolio loan and have seller carry back portion? Acquire under market, and use new appraisals to lower my out of pocket? BTW I dont need all, even 4 or 5 would suffice.

Thanks in advance