All Forum Posts by: Jamie Parker

Rehab ($25-$30k) on my first BRRRR is coming to a close (Purchased mid January) and I am now hunting down financing. I paid cash for the property and am looking for an 80% LTV cash out refinance. I got a quote stating that they could give me an LTV that would cover the purchase price of the house + closing costs ($86k), which is roughly 66% LTV.

The ARV of the townhome should be roughly $130k. So here's my question:

Is it normal to take a pre 90 day LTV to recoup the purchase cost, wait the seasoning period, and refinance the rest of the cash out at a later date?

Or is it better to wait out the seasoning period with your loan balance (I used a HELOC so no hard money lenders or balloon payments) and just refi out in 6 months?

Also if any lenders in the Memphis area have advice it would be appreciated! Thank you ahead of time for any advice!

The first lender I spoke to essentially said 12 months seasoning is all they offer, which would be really unfortunate for my time frame on getting into another property. Is that a standard thing or just simply what one lender might offer? The other two I reached out to did not return my calls as of yet.

Thank you!

Casey

There are some lenders that require no seasoning, Locally. They are here in memphis. If you want I can refer you. I am surprised that they have not reached out in this thread. Maybe they cannot see every post. PM me and I can point you towards a couple of options for Refi with minimal seasoning.

1 Vote

Memphis, Tennessee

Quote from @Walter Jones:

I've done well in Memphis also. You give up some of the boom (and bust) that you get in some of the other areas, but there's a solid economy and a strong healthcare system. Good balance of strong cash flow and appreciation. 19 doors and counting.......

@Jamie Parker are you a member of the Memphis Investors Group? https://www.memphisinvestorsgroup.com/

Not yet. Wasn't sure of the Official Memphis Investor group. Now that I know, Will be signing up soon.

1 Vote

Quote from @Alfred Dublin:

Hey I’m in the Augusta/North Augusta area and as I’m driving around it seems like new construction sfh, multi family, neighborhoods and more. It’s like everyday I see a new project starting.
What do this make you’re actively investing? (I’m not) house hackers, flippers and landlords. Are these good sites to see or threatening?

I remember growing up in memphis and going to the military. While overseas thinking "i dont want to invest in Memphis". Move back the states and stationed in Nashville. The biggest real estate boom I have ever seen in my life. As the prices got higher and higher cities like huntsville and chattanooga became the topic of discussion for buy and hold investors and flippers. I was working birmingham myself for an investor and I just didnt understand it. Fast Forward, I bought a property in Memphis last year and some how I get it. All it takes is a hand full of comps, new businesses, reasonable "average days on market" and an influx of population due to jobs and bam!! In these conditions an investor called it "the path of growth". I have seen it first hand. In 5 years its a whole new area, and if you get in early its better than bitcoin.

5 Votes

Quote from @Eric Andrekopoulos:

Hey BP Fam,

I currently have a local investor looking to exit his rental business within the next 5 years because he's older in age. So he wants to sell all of his properties. A vast majority of them have 100% equity which is a beautiful gate to seller finance which I feel will be the most profitable. He mentioned he just "doesn't want to do it" and would rather just get the cash from selling them. Now he does have children he wants to pass wealth to (cash) and not his business. Other than explaining how his children will continue to receive the payments after his passing what can I do to get him on the positive side of creative finance? I also explained to him the tax benefits of it which was another one of his worries.

Well, What kinda property is he looking to move? Is he looking to sell as a portfolio? or just move them as they go?

0 Votes

Quote from @Don Konipol:

Quote from @Jamie Parker:

I do my fair share of phone calls and networking but every year I have manage to come across a deal so large my brain starts to fume. Few years ago it was a multi-state portfolio spread across 5 states. last year it was 500+ units in Texas and 400+ units in Florida. This year two separate deals in Florida 300+ and 100+ units both in South Florida. This is not a pitch post, but a post hoping to seek wisdom.

When I see these size deals, investors say "don't spend all your time on the big deals". I cant say that I disagree with the logic. However, what is a proper amount of time spent on something like this? Being honest, after cash on cash, dcsr, cap rate, noi, and occupancy rate. Assumable debt, first position, second position(construction, bridge and mezzanine) I think i get those terms.

For the seasoned among us, what should I do when these "brain busters" are sent to me?

You can do the size deal you’re READY to do, through your experience, education, knowledge, financial strength, borrowing capacity, investment capital and network. STRETCH somewhat to get to the NEXT level, but a huge stretch is probably going to be a waste of time.

I think I am "ready" to refer a deal to someone. All jokes asided, admittedly I will say, at this time all of these deals are outside o my borrowing capacity, financial strength and investment capital. I see deals like this "traded" all the time.

0 Votes

For the seasoned among us, what should I do when these "brain busters" are sent to me?

0 Votes

Quote from @Danielle Lynch:

Hi guys,
My first bigger pockets post. I own 3 long term rentals in Chicago and I am looking to buy my first multifamily in south Florida. Does anyone have recommendations on cities they are investing in Florida that are currently working? Do you think I have to start with 2-5 units or just analyze the numbers and try to scale up to more doors (which is my goal at this point). I have $500K liquid and another $400k in stocks I could pull out if I find a deal I can't pass up. Thank you in advance for any help!

Hello Danielle,

How is it going with multifamily in south florida?

0 Votes

Miami, Florida