All Forum Posts by: Eric Van Deman

@Hillary Young No problem.  Just sent you a PM.

Hi Felipe,

Congrats on your plan.  I invest in student rentals in few different markets. Proximity to campus is always a key. Many campuses charge students for parking, so if you are able to market your rooms as walkable to campus, they will be much easier to fill each year. I would learn more about the campus and search for property managers who work the rentals around the campus. There are often locations/sides of campus where students prefer to live. Best to follow the demand. 

I think you can also likely search the forums here to find investor friendly realtors and lenders in the Reno market. Licensing of lenders is done by state, so the same lender could help you in both Vegas and Reno and some carry licenses in multiple states. If you find one specific to Reno, they may just be able to offer a cheaper appraisal through known contacts, but that would not be a deal breaker if you find a good one in Vegas. 

Best of luck,

Eric

Hi Jacob, as a first time investor, there are some aspects of getting financing on a commercial property that may be challenging. All banks are a little different in their criteria, but most require:

65-75% LTV for commercial student housing loans

Landlording experience

Net worth equal to the loan value

Debt service coverage ratio of at least 1.25

Sometimes banks will give you a pass on one or two of these, but not all of them. The good thing about commercial lending is you can partner up with other people, so that collectively you meet all of the banks requirements, even though you don’t on an individual basis. 

Holly has a good point though. Calling around to banks is free, so might as well give it a shot and see what they tell you. If it doesn’t work out, you’ll learn something about the process. 

Congrats DeWayne!

Hi JR, I don't know who actually provides the most commercial funding in your area, but I know Wauchula State Bank does commercial loans.  I have a loan through them for one of my properties in Tallahassee.

Kind regards,
Eric

@Brenton Hanes No worries.  Just sent you a PM.

@Adam Lacey No problem. Just sent you a PM. 

@Tina Thornton I live in Castle Pines and have been very happy with my local attorney, who works out of the DTC in an office near Pappadeaux’s. She focuses on real estate, but her practice also has a partner who focuses on estate planning, so I’m sure they could help you.   For my commercial loans, I use a commercial mortgage broker who has a network of banks across the US. She is awesome. Feel free to PM me for either of their contact info. 

@Mark Larson

I agree with Stephanie’s points above,  apart from the rates. I’ve financed buildings like this in the 4-5% range with minimal origination fees to the bank through a very resourceful commercial mortgage broker.  If you would like her contact details, feel free to send me a PM. 

Hi Mark, 

One of the other hurdles that you might come across, which may or may not be an issue for you, is that a lot of these loan programs at this level will require your net worth to be equal to or greater than the loan amount in addition to the DCR mentioned above. Best of luck.