All Forum Posts by: Jacob Simpson

@Angela Heydorn , I'm actually hosting a walk-through tomorrow afternoon in north Rossville on a flip project. There should be a couple of local investors there. Send me a connection request if you want to join us. Definitely agree you should join the FB group, REI Meetup Chattanooga

I think @Danielle Roos with Hawthorne Holdings had a duplex in Chattanooga that might work as a house hack. Lazard, I think.

@Chris Kloc, how many wholesalers are you connected with? There are usually 5-10 off market properties being offered each week. Most of them aren't great, but there are some base hits in there. MLS inventory is so low right now that anything listed is probably going to have multiple offers. Stay disciplined, network with wholesalers and other real estate investors, and the deals will start to come across your desk. Good luck!

@Amoreena Gionet, welcome to the Chattanooga area! I'm also a Tennessee native, and I admit this is some of the prettiest county in beautiful state (I may be a little biased). My partner and I are finishing our first flip together and already have two more (1 flip, 1 buy & hold) under contract. One was off market, the other was a pocket listing. MLS inventory is very low in Chatt right now, but there are still off market deals to be found. Welcome to the area and I wish you good luck!

@Kenneth Garrett, I just sent you pm and connection request. I would appreciate a copy of your investor document as well!

Does anyone have an Interview Guide that they use to qualify potential lenders? I've put together the questions below, but I'm open to any and all input. This is primarily focused on residential lending, but I will probably make one for commercial as well! Thanks for your help!

1. Experience
   1. How long have you been in the lending business?
   2. What experience do you have working with local residential real estate investors?
   3. Do you own any real estate investments of your own?

1. Property Criteria
   1. Do you only finance certain types of properties? Which ones?
   2. Do you only lend in certain geographic locations? Which ones?
   3. What other property criteria do you consider when making funding decisions?

1. Borrower Criteria
   1. Do you finance borrowers that have financing agreements with other lenders?
   2. Do you require borrowers to maintain reserve amounts? How much, and how are they calculated?
   3. What other borrower criteria do you consider when making funding decisions?

1. Loan Terms & Fees
   1. What loan lengths do you offer (8,15,20,30 year)?
   2. What is the maximum LTV you will finance?
   3. What are your interest rates on your loan packages? How do you determine what interest rate to offer a potential borrower?
   4. Do you charge points? How much and when? Do you offer higher interest rate packages with fewer points?
   5. What other fees do you charge?

1. Investor Oriented
   1. Do you provide funds for rehab costs?
      1. What do those costs cover?
      2. What is the high level process?
      3. What are the documentation requirements?
      4. How will you be involved in the construction/rehab phase of the investment?
   2. Do you offer loans that account for the value of a property after it has been renovated?
      1. How do you calculate After Repair Value of a property?
   3. How many loans can I, or my LLC, have at one time?
   4. Do you offer both recourse and non-recourse financing?
   5. What additional advantages do you provide for investors that live and invest locally?

1. Funding Timelines
   1. Can we get pre-approved for funding on future projects?
   2. How quickly can you process documentation and guarantee access to funds once a contract is in place?

@Rashad Jones Jennings, reach out to Ross Paller with LaRossa Construction. They actually have three companies that are loosely tied together that handle property acquisition (wholesaling), renovation, and property management. @Danielle Roos is their acquisitions queen! I'll message you Ross' contact info.

@Katie Neason, thanks for the input! We are looking at an interest only loan for 3-6 months while we renovate, and then converting to a 15 year fixed. There is a 20 year amortization option, but it is basically an ARM that adjusts every 5 years with a floor of 4.5% on the first adjustment, so the 15 year seems to make more sense at this point. I'm working on our pro forma now, and even if I'm half wrong on the lease rates, I think it is still a good deal. The area is underdeveloped and desperately needs better housing options for young professionals or maybe even traveling executives. Still exploring that market...

My partner and I are evaluating a 2 story commercial space that is zoned Mixed Use. We are considering having Office Space/Retail on the 1st floor and then Apartments on the 2nd floor. What are some options that you have used successfully to fund the purchase and renovation for such a project? We believe the reno costs will be about 50% of what we are able to purchase the property for.