All Forum Posts by: David Chappell

Hi Jeremy,

I just started investing in the MGM market late last year and it's been OK so far. I have built a great team of a PM/Agent (Greg Parker from this thread and A3 Realty) rehab and lenders and I am looking forward to acquiring more. It has been tough to find properties off-market where the BRRRR rule is able to be applied, but there's some good ones out there if you're willing to leave a few $k in the deal. I do this from out of state so Im a few days behind everyone else there, so I try to analyze properties quickly and utilize my team to be my eyes on a project. Rent seem to be a little higher than Birmingham and the houses are a little larger as well...easier to find 1500 sq ft houses in C areas which cash flow.

Through guaranteed rate 10% down I had the following requirements:

- cant be managed by property management company (must have 100% access to the property)
- must plan on staying there a portion of the year
- no active leases
- must have access to the property within 60 days of close

Blake, the 20 yr max is unfortunately all Ive been able to find. I spoke/emailed to around 20 banks in the Birmingham/Montgomery area and didnt find one that was willing to go over 25 years, 20 seemed to be the standard for commercial. I started to look into DSCR loans but wasnt able to find one that would offer sub $100k loans, 30yr, low closing costs so I opted for the more flexible commercial loans but with 20yr amort. Still trying to figure out the next best steps for me at this point.

Hi Blake, this was a big help reading this..thanks for that. I am currently at 8 conventional mortgages under my name and will be financing the next few SHF through a local bank. Until we work together on a few deals I am stuck at a 20yr amortization but I am hoping they will move me up to 25yr. At this point that is cutting into cashflow and I am only finding deals that make around $200/mo which is still OK by me. Your mention of a $1m max concerns me, since that is only about 10 properties and I hope to reach that this next year and a half. I like the idea of working with a local bank to give me a little bit of flexibility, but starting to thing a non-conventional loan with 30yr fixed and a little higher rates may be the way to go? The commercial lender is offering prime +1 with a point in closing costs.

Hi Scott, I am currently investing in Bham and MGM and looking to add Huntsville to my markets as well. Would you be able to send me some PM recommendations? I am investing OOO so I am looking for someone that is willing to do a quick walkthrough of the properties for me and is willing to manage the rehab for a %. Thanks!

Thanks so much Greg! I just sent you an email.

Hi Everyone! I am new to the Montgomery market and am getting my first property under contract there next week. Do any companies in Montgomery offer an "investor" inspection that covers the major components (plumbing, hvac, electrical, foundation, roof, etc) and skips over the cosmetic stuff? I use one in Birmingham that only charges $175 for inspection so it's a pretty good deal and was hoping to find someone like that in Montgomery. Thanks in advance!

Hi @Ravinell Wilson can you PM me some info?

@Austin Wise go ahead!

Not sure whos name they are in, but you could have 10 each. Another option is to find a smaller bank that doesnt sell their loans and keeps them in house. You could roll the ones with higher cash flows into a portfolio loan with a bank, that would free you up to get more fannie/freddie loans. You also go the basic commercial lending route and refi it into one of those as well, they dont have the 10 loan limit like the conventional lending side does.