All Forum Posts by: Eric Martin

No, thankfully there was not a seasoning period at all. I worked with a local bank to do a portfolio loan. My understanding is that they are keeping it on their books and not reselling to Fannie/Freddie. Some banks do have seasoning periods and some don't - It's all about finding the right lender. Good luck with your refinance in Kansas City! 

This was not my first deal but it was my first time using the BRRRR strategy and working with a hard money lender. My first job after college was working for an investor doing real estate wholesaling. That position gave me a lot of experience analyzing deals. That experience gave me confidence with the numbers when I borrowed from a hard money lender for this deal and I knew I would be able to increase the value and refinance in just a few months. If for some reason I wasn't able to refinance, I knew I could always sell it to pay off the loan, if I needed to.

Direct message sent!

Thanks for the encouragement, Matt! 

Referrals are a great way to find any new addition to your real estate team. I would ask other investors in your area what hard money lenders they have worked with and then give them a call or schedule a meeting to see if they are willing to lend to you. Good luck!  

Estimating repairs is definitely not my strong suit either. Before we made our offer, I walked the property with a repair sheet and used that for estimating repairs (DM and I will send you the form I used). We hired a general contractor for the rehab and were lucky that his quote came in right in line with our estimate. If you are not experienced with home improvement, ask a contractor to view the property with you. You can ask them questions and learn from them while you're there. You should offer to compensate them for their time though if you have never worked with them before. 

My business partner had an existing relationship with the hard money lender so that definitely helped. For this deal, We were able to obtain the loan with no down payment and the lender also covered the closing costs so we didn't have to bring any money to the closing table. In my market, there is no shortage of hard money lenders that are eager to lend to investors. Basically, if you have a deal and a pulse, they will lend to you. 

@Jake Silverman We referenced our city’s tax-assessor website which shows the mailing address for any owner. Because the mailing address is different from the property address, we knew he didn’t live there. Typically, absentee owners are more likely to sell, although that’s not always the case.

I am working on the next one right now! Should be wrapped up pretty soon.

Side note: I have a cousin that lives in Cambridge! I have heard of investing out of state, but how is investing out of the country?

I recently graduated from college and have a limited work history that makes it more difficult for me to "check the boxes" needed to conform to Fannie/Freddie loan requirements. Using a commercial loan with a local lender was much easier for me in my current situation. It also doesn't count towards one of my conventional loans, so that option is still available for future deals.