All Forum Posts by: Chris L.

Hello Dave,

Your down payment/ deposit should be held in escrow by your title company until closing. Once closing occurs the down payment is the sellers and he can spend on whatever he pleases.

In your contract it should be very clear what constitutes "the closing" depending on the structure of the financing? Is it when you take control of the properties? Is it when you refinance? How is title being held and when is it being transferred... All these factors determine when the down payment/ deposit will be released to the seller.

No matter the circumstance it is always best to have a third party hold down payment/ deposit with very detailed instructions in the contract which how the money with be paid out, circumstances for refund, etc... Hope that helps.

Cheers!

Hello Gabe,

Depends on the lender and the program your applying for. We have no income verification loans and  we have full doc. Full doc usually gets you better rates and terms but no income loans are available. Please feel free to reach out with any questions. 

Cheers!

Hello Jordan,

Call the local zoning board or municipality. They will tell you if it is an issue and if there is a remedy to bring it up to code. Sometimes it is as easy as a simple hearing process, sometimes the use could be grandfathered in no matter what the zoning so only they can tell you what your up against.

Cheers!

Hello Haseeb,

Yes there are portfolio products available for such properties. Lenders have a lot of different underwriting guidelines so would need to know more about the details of the portfolio to really answer your question. Feel free to private message me if you would like. 

Rate & Terms would be after a full underwriting. This type of blanket loan is a commercial loan which means rates and terms are issued on a risk adjusted basis after underwriting the properties. Commercial rates are usually a little bit higher then residential rates but you sound credit worthy so I don't think you would have to worry about subprime rates. 

Yes there are programs that allow you to cash out refi with only 30 days seasoning and if you are a business owner there are also business financing tools you can utilize to buy these low priced houses and pay them off within six months or so. Again if you would like further clarification please feel free to connect. 

Cheers! 

Hello Christian,

My first question is why section 8? 

You should have a decent nest egg. Owning houses is not cheap. One furnace can set you back $5,000 on the cheap side and wipe out your cash flow for an entire year. Times that by 20 or 40 houses it can get quite expensive to carry a large portfolio. Most lenders want to see some skin in the game now a days so I would plan on saving a little money to put into the deal.

As for books, there are no books that can prepare you for the real world of section 8 housing, lol, but one I would check out to start is The Section 8 Bible by Michael McLean and Nick Cipriano.  Gives you some good tips on how to bullet proof your house to protect from tenant damage, inspections, etc... some basic information.

As a cautious investor be sure to study the section 8 strategy very carefully. It can be a wildly successful cash flow strategy for investors with the right temperament but I have also seen it chew up very wise seasoned investors and spit them out the other side. Just do your homework and most of all screen, screen, screen your tenants. 

Cheers!

Hello Michael,

Go check out Upwork.com. You can post your job free and people will bid on it. I have had a bunch of pitch decks completed from some good freelancers on the site. Only thing is be mindful you get what you pay for. In the same breath we have had some success with off shore contractors completing great work for really low prices. Just vet your freelancers thoroughly. 

Cheers!

Hello Raymaze,

Need to know a little more about the land? Residential or Commercial?

Need to check local zoning codes to see what they will allow to be built?

All types of options either way?

If it is residential? How many lots can you get out of it? Can you build a multi-unit on it. If so how many? Can you build mix use... 

If it is commercial? What would be highest and best use of land? Small strip mall? Office buildings...

Would it be good for fast food or bank where you could land lease them the property and they would develop it and your colleague would just sit back and collect check.

As you can see there are a bunch of scenarios you can throw out there but it all starts with the zoning of the property and what is allowed under current zoning laws unless you wanted to go through a zoning variance proceeding. From that point you can start to brainstorm about highest and best use and ROI.

Cheers!

Dun & Brad Street is the go to source for Business Credit Scores. The problem is you have to be working with vendors that report to D&B for it to impact the businesses credit score. Once you have enough reporting vendors your company will be able to stand on its own as a borrowing entity. Takes a while and you must have the volume and balance sheet to warrant the fuzzy little feelings the banks need when removing you from the personal liability. There are companies out there that will show you how to get business credit for a fee but all they really do is line you up with vendors they know report to D&B so if you did a little digging you might be able to come up with some of them yourself. Example: I believe ULine Supplies is one of those companies that will extend business credit to almost anyone and reports to D&B. I never shopped from ULine so I don't know that personally but I have heard there name thrown around a couple times in similar discussions. 

Hope that helps.

Cheers!

I have foreign national loan programs. Please call me.

Thanks!

Chris

Hello Kelvin,

It happens all the time. You need a non circumvent agreement. Have the potential buyer sign a non circumvent for each address/property you put in front of them. It should state something to the effect that if they purchase the address listed on the agreement within X amount of time (12 months, 3 years, whatever) then your fee has been earned and is due upon settlement of the property. This will protect you. Sometimes you have to go back and do some digging if they settle the property in an LLC so make sure the non-circumvent includes personally as well as any entity they may be part of no matter ownership percentage. Hope that helps!

Cheers!