All Forum Posts by: Erik Estrada

Hello!

I own about 5 rentals in the same city in lousiana. I paid an estimate of about 25k for each in cash. (No mortgage on any).


the cash flow is a total of $3,100 a month

Do portfolio loans exist for these kind of situations? I would love to pull equity of these cheap rentals. Unfortunately each one is worth 25k. 

thank you 

Hello All! We are fix and flippers here in Michigan and are strategically rebuilding our team. We are looking to connect with trustworthy hard money lenders who lend here in Michigan - looking to build a successful partnership within 2025. Company suggestions are welcomed and appreciated. Thanks!

@Erik Estrada I went ahead and removed the states entirely, you're right that I should be more cautious. There are 2 main lenders that will do 80% cash out and they don't charge brokers origination fees because they're wholesale lenders. What I love about them is they will even accept the higher lease amounts over the market rents if we can show first month's rent and security deposit. The best part is there is no ownership seasoning period with one of these lenders and they don't report to personal credit. These lenders allow you to originate your own loan if you are a broker with them. So when my clients work with me, I simply guide them through the process of originating their own loan (legally, in the states that allow it). It's a different business model than the typical broker-investor relationship. I take the approach of the investor pays me a fixed fee to learn this on their own so they never have to pay me again if they don't want to. This allows them to pay $0 in origination fees and once they learn it, they don't have to pay anything aside from underwriting fees. I just had a client close his first refinance loan and he only paid $1645 in UW fee. Check out this reply when I asked him how long he spent closing his own loan. It's the vision I have that if an investor is capable of doing their own loan, they just need to know how.

@Erik Estrada I actually wrote a blog on the topic and will continue to write about it. Happy to share that here: https://www.biggerpockets.com/member-blogs/15969/104415-the-...

We do lending and we ask the question - if you have been doing this for ten years and don't have any money where did it all go? 

Thank you all for your responses and helpful insights. We are currently taking down contact info and reaching out to everyone accordingly. We are looking to create a trustworthly, lending partnership this year with our HML.

Are there any HML that are solely asset based?

Also, are there any local lenders? We would love to meet at one of our REI Meetups that we host.

Thanks!

Hello. I'm looking to connect with other private lenders in the Tuscaloosa, Al, Birmingham, Al, or Huntsville, Al areas. 

Send me a DM and let's discuss the local market!

,West