All Forum Posts by: Gabrial Carter

I made some calls today and have 5 local banks / credit unions that will put a commercial loan against this portfolio. A couple of them even know who the sellers are.

However, now I have to figure out how to get the 25-30% down payment together. I think the best option is a private lender to float this until we can refi in 6-12 months to capitalize on the built in equity at purchase and value add opportunities.

I'm interested in this Fannie Mae pilot program you mentioned though, will be sure to look it up.

Thanks Stephanie!

Before we finalized the offer on the properties, we ran out a 3 year capital expense plan to account for improving the properties that need it, either with deferred repairs or value add improvements. Also, my partner on the deal and the property manager both have had/currently have college rentals in this market and systems for managing them and mitigating the risks.

As for value, they vary a bit (some are SFH, others triplexes or duplexes) but the market value of the portfolio is about $700, and we are going under contract for $490K.

Thanks Michael! We were thinking that we'd need to go to commercial lending on this, but your suggestion about payoff amounts by property is a great one. We were thinking of selling off one of these in the next year or so.

Hi BP Readers -

We are about to go under contract on 7 properties in Kansas, about 20 units. Mostly college rentals, and we're getting them at a significant discount to market (even considering some deferred maintenance). There are also some value-add opportunities in a few of them. Lower than market rents, capacity to add rooms, etc.

However, we don't know how to finance them. We don't want to do 7 traditional mortgages; but would rather bundle these up as a portfolio. Any suggestions?

Thanks!

As promised, I did want to come back and give an update. The broker and myself worked out an arrangement to find and purchase properties outside of the MLS. They'll work a couple of neighborhoods door to door. Their commission will be tagged to the market value of the property, not the sale value - this way our incentives are not out of alignment. I want cheap properties, of course, they want to transact market value properties. They're aware of how many properties I can finance now (about 3) and our investment criteria.

Let's see how this goes!

Hi Everyone!

Wondering if any of you have worked with a tree removal crew that is quick and cost effective. Would love a referral!

Thanks,

Gabe

How about BS Mechanical Engineering and MS Finance. I am very comfortable with numbers and spreadsheets!

Thank you both. My hunch was that these agreements didn't necessarily apply to transactions between agent and investor. I'm going to be having lunch with the broker this Wed and I'll report back on if we could work out an arrangement.

Hi All -

I was recently in a discussion with a broker about single family investment properties. They'd indicated that they would go to work once an exclusive agreement was signed. I hadn't heard about this before; and was wondering if this is a common thing our if anyone has any insights on this. I had a couple of concerns:

- I've commonly seen advice to work with a few agents if possible, not necessarily for MLA listings but for other leads that individual brokers could generate. This would prevent that I think

- This seems like a cart before the horse situation. I don't think an investor would want to commit to working with an agent until there is a some track record of property transactions

Any thoughts would be appreciated!

Bill -

That's very helpful, thanks! It does look like there is quite a bit of R-2 and R-3 around our market neighborhoods.