All Forum Posts by: Grayson Wester

Lots of great advice and experience in this post @Sanjoy V.! My advice is to leverage as much of other people's experience as possible to make this deal work. From a lending perspective, that's the main thing we look at on deals this size - does the borrower have the track record to make this deal work? I would work hard to find someone you trust with good MF experience to go in on the deal with you.

@Sean Jany I'm a hard money lender in Texas and we look at both the borrower (you) and the asset. Hard money lenders are all a little different, but most will look at:

• Your real estate experience
• Liquid assets (cash that you can get access to within a few days)
• Credit score
• Taxable income
• The numbers in the deal you're looking to get a loan for

If you find yourself lacking in any of these areas you can also bring in a co-borrower on the loan to help make up for any gaps. For example, say you have no experience, very little liquidity, but an incredible credit score and solid income. In that case, you'd want to find someone with experience and good liquidity to act as a co-borrower on the loan.

We'll lend to brand new investors, but the terms are a little different than what a very experienced investor will get. Hope that helps!

@Hao Dinh there are a few different ways to approach it, but like @Tarik Turner said, keep an eye out for the seasoning period required by the new lender. I'd also encourage you to double check on pre-payment penalties as well. I have a client who got charged $3000 a few weeks ago for paying off a loan early with their former hard money lender.

Another thing to consider is a 30 year loan through a hard money lender. These products are a great fit for buy and hold investors and offer favorable terms and underwriting processes compared to traditional Fannie Mae and Freddie Mac loans - also helps you to get around maxing out your 8-10 loan limit with the government loans.

I agree with @Craig Jeppesen @Justin Schiller. One thing you'll learn in this business is the value of your time. Right now it doesn't sound like you have much time, but you might have a lot of money at your disposal if you're living responsibly and saving it. If you do have the capital, find someone you trust who is already doing deals that can put your money to work with you being the private lender. Another option is doing a JV deal with someone where you front the money and split the profit 50/50 with them finding the deal and managing all the work.

In the end, if you want to really move towards being in real estate full time, you've got to find a way to shift some hours out of each day and week towards your goal. I totally think you can make it happen within 2-3 years, but you've got to outline a plan that's going to help you get there and start working that plan every day and every week.

This is a hot topic @Sanjay A. Historically you couldn't get conventional financing for an LLC, but as of November 2017, Fannie Mae now allows the post-closing transfer of title to an LLC. There is some fine print you need to read on that, but nothing crazy.

However, if you max out your 8-10 Fannie Mae loans, there are hard money loans out there where you can get 30 year amortization for rates in the 6-8 percent range depending on LTV, PDTI, FICO, etc. Like others have mentioned, I know some investors who have found some incredible deals on long term loans and lines of credit with local banks.

  @Sanjay A. glad you found a path that will work! 

@Brandon Motuk check around for hard money lenders that service PA. There are a lot of new loan products rolling out where you can get a 30 year hard money loan at decent rates (some with cash out refi features). I'm in Texas and we can lend to LLC's so I know it's possible. Just depends on the lender and the state.

@Jeff B. Harrison I'll PM you two contacts. A State Farm rep I use here in New Braunfels that can do builder's risk insurance and a contact we have in Houston that we refer our clients to. Both are awesome and can get you what you need.

I'd be happy to share my experience. Sent you a PM.

Great report @Bruce C.! And way to go getting those utilities switched over to the tenants - that sounds like a cash flow nightmare!

Looking forward to seeing more updates. I'm interested in doing AirBnB's in New Braunfels, but a lot of these smaller municipalities are making it near impossible. Thankfully the Texas Legislature has sided with property owners - hoping to see that trickle down to the local governments soon.