All Forum Posts by: Ike Ekeh

@Michael Schaper 

Underwriting potential investment opportunities is a numbers game. You mentioned that you've only been looking for the last couple of days so unless you've literally spent every waking hour of those two days analyzing deals, you most likely have not looked at enough to form a finalized opinion on the PHX area. 

Also, it may help to reach out to local agents/brokers, explain what you are looking for and have them set you up with an MLS account to better streamline your search. This will help you in two way: 1. It will force you to explain exactly what you are looking for as well as your long-term investment goals. 2. It will help to screen out all the properties that are not within your investment criteria.

Another tip: Try your best to stay away from underwriting deals at a discounted asking price. Yes, you may be able to negotiate the finalize price down, but chances are (especially in today's sellers market) the seller will not be willing to reduce the asking price a meaningful amount unless you make an all cash offer, an offer with minimal contingencies or both

Lastly, if you do ultimately decide to go OOS for your investment, make sure you underwrite your team just as much (if not more) than you underwrite your deal. Find experienced, honest, high integrity individuals to help you along the way.

Good Luck!

@Sam Grooms That's awesome! I bought a small deal in North Phoenix in May earlier this year. I ended up having to evict a tenant who was taking very poor care of his unit. (I knew he would be gone as soon as I stepped into his unit @ inspection.) All in repairs including opportunity cost of lost rents while repairing was ~$10K. The rent will be going from $500 - $799. Which gives me ~36% annualized return.  The actual dollar return on mine will be nowhere close to the 31% on a 98-unit deal I would imagine, but still pretty happy about that one!

Hi @Olena M. can you please add me to your mailing list?

Thanks!

@Brandon S. Congratulations on having healthy personal finances! Although not a requirement, this will definitely make your lender profile MUCH more palatable to lenders you work with. 

To answer your question regarding net worth requirements, banks tend to look more at your personal debt-to-income ratio as opposed to your net worth (sort of an income statement approach as opposed to a balance sheet approach if you want to make an analogy to a business or corporation) This is because they are more interested in your ability to service the debt, basically banks want to make sure you will be able to pay them back no matter your performance as an investor.

Moreover, since you are looking to invest in 5+ unit deals, you'll most likely go with a commercial loan as opposed to residential and the underwriter will pay more attention of the income of the property than your personal income. All that said, if you are able to find a property that cash flows well coupled with your exemplary investor profile you should be able to procure conventional financing at a reasonable rate.

Good luck!

@Elian Stuff thank you for your feedback. Maybe in the future we will be acquainted and you can better understand my endeavors in Real Estate and I can understand yours. All the Best

Hello BP Community-

I am looking at deals in Stockton, CA and the surrounding regions. I would like to get prequalified with local lenders in the area and I want to start to build relationships with mortgages professionals and loan officers who can help with this. I would really appreciate recommendations from investors and RE professionals in that area.

Thanks!

Thanks again @George Nyquist

Thanks @George Nyquist !! Have you had any experience with any of those individuals?

San Francisco

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Northern California

Alameda County