All Forum Posts by: Jason Hirko

Since money is made when you buy in Real Estate, I'd say a GREAT realtor is more valuable than a great GC. However, finding a good realtor seems to be easier than finding a good GC for most

Yes - there are profitable strategies in every market. I am buying rental properties and getting as many fixed rate 30 year loans as I can. Inflation will drive my rents up, but my monthly payment will stay the same. It is a true hedge against inflation. 

@Martin T. If you know what you're doing, and can afford the risk, negative cashflow isn't always a bad thing. You said the property is appreciating, and your renter is paying down the principal on your loan every month. The problem people get into is when they aren't being realistic with what they can afford or what expenses will be like. 

@Ryan G.In my experience, arguing that your opinion is right and the appraisers is wrong (see point 2 & 4) never works, as this is, after all, the Appraiser's opinion of value... not yours. However, if you can find factual errors (point 4), and point them out to the appraiser in a diplomatic way, often times they will be willing to correct the mistake, which changes the value. Give them a way to save face. As for point 3, that should be covered in a condition improvement. You can't expect the appraiser to find the exact same house in the exact same condition. These are comparables, not identicals.

Get an Estoppel Certificate as part of your diligence from the tenant saying there is no lease in place. Problem solved. At that point, I imagine your state has some default lease terms (in Texas, it's basically a 30 day lease). What you don't want to do is have your new tenant show up with a document they claim is their lease for $25 a month for the next 10 years. Then it's their word against the old owner's word and you have a mess on your hands. The estoppel cert solves that.

@Mike Schorah DSCR loans is a broad category. There are lenders doing less than 6 month seasoning for max LTVs.

It's also important to point out that a true DSCR loan has nothing to do with your employment status. In your example above, you said "...get another job..." but that doesn't really matter

@Rachel Lake Who is the wholesaler? I am sure I know them and I'd be happy to make a call to them on your behalf

I have read this several times, and it sounds like you think this bad?!  I hope I am reading it wrong, but if you have a lender offering that, take it and run and then repeat as many times as possible. 

As for your question, think about it from the lender's perspective. If they end up having to take back the property mid-rehab, they aren't going out there and swinging hammers, they're going to call a contractor to finish it up. So the savings you might have by DIYing it don't translate to the lender, so they need to make sure the numbers work in that worst case scenario.

@Kristin Caras not all deals are worth investing in. If the numbers are already that tight for you, one bad stretch of vacancy or major repairs and you're going to be hurting

@Michael A. North Carolina is our biggest market outside of Texas. I'd be happy share any insight I can from all the loans we've done there!