All Forum Posts by: Jason Taken

Quote from @Marc Shin:

Hello - I've identified a potential property for an STR. I need some help with analyzing the potential for a home for an STR. Can someone help me with the analysis?

Have you checked out any of the resources (free or paid) that BP has to offer on this? 

Quote from @Erik Estrada:

I am curious why some clients hate working with brokers? Do they feel they have more control working directly with a lender? Is it a lack of trust? Do they feel they are getting a better deal by going direct? 

 It could be a better deal - although the good brokers have the connections with lenders where the pricing is the same. In working with many clients as a broker over the years - the issue I discovered from really just talking to them is a lot of brokers are living deal-to-deal and don't really have a business set up - so there's commission breath going around plus the fact that instead of giving the current client white glove service, they are already looking for the next loan to close and often consider the one in the pipeline already in the bag.

Just my experience.

I just shot a youtube video about this. You educate them on what hard money is - or you take the risk of them blowing the deal up once they find out you have a loan.

Nothing beats cash - and everyone knows it. So if there's a third party lender involved - some people just don't want to deal with that. Educate them on this.

Quote from @Jim Vasica:

I am 46 and planning to purchase 5 total properties over the next 4 years, After they are purchased I will be using my own money (W2 job) to pay them off and retire early. How important is cash flow and COC return now if my plan is to use my own money to pay them off, My theory is with the amount of interest i will save on the loans by paying them off early i will be saving. Am I thinking about this correctly or am I missing something?

That's certainly one strategy. 

There is no right or wrong. If it aligns with your goals go for it.

Loans are helpful because it allows people to leverage other people's money to do the same thing you're saying --- albeit on a longer timeline.

You should be able to get an inspection unless for some reason there isn't access to the property. Use a state-sponsored contract and work with a realtor who works with investors.

Also - for your first deal, just keep in mind that building relationships with boots on the ground will help ensure you're successful, because managing a flip on your first one is difficult, the complexity added with being remote makes it even tougher -- but totally get the location issue. There are some markets that just make the barrier to entry too high.

Maybe even fly or drive to the property and lay eyes on it with your contractor as well before you close.

Again - a local investor-friendly realtor should be able to help you get it done.

Quote from @Ruben Goodbear Anders:

Hello,

I’m under contract on a 9 unit mixed use in west allis Wisconsin. Was wondering who you can lend on this and what a term sheet would look like.

Purchase, 350. Rehab estimated 135. ARV 700. 8 residential units 1 commercial.

Thank you.

 Most, if not all, lenders will de-lever on this type of asset. 10% down is very unlikely. Your best bet for pricing is probably a local credit union. Make sure to have your ducks in a row though -- strong SREO, strong property financials, strong track record on this asset class.

Quote from @Jithendra Palasagaram:

Hello

New member here. We are looking to buy a $350K town home in Atlanta Metro. We would like to put or LLC name on the title. Builder said we can do it post closing. Is it easier to do it post closing? Would there be any fees and would it cause issues with lender? Pros and Cons to doing this?

Thank you.

 The vesting should be appropriate at the time of closing on the mortgage. Switching up vesting after there's already a mortgage on the property opens up a slew of issues. For better guidance though, get a local attorney involved - don't take advice from a builder on matters of legal consequence.

Quote from @Parker Stephens:

Hey everyone,

I just had an offer accepted yesterday on a local property (direct seller-to-buyer, no agent involved). Since this is my first deal like this, I want to make sure I’m covering all my bases legally.

A couple of things I’m wondering:

• What steps should I take to make sure everything is buttoned up correctly from a legal standpoint?
• Should I be putting this property into an LLC right away, or is it fine to close in my name and transfer later?
• Are there any specific documents or professionals (attorney, title company, etc.) I should definitely have involved at this stage?

Appreciate any advice from those who’ve been down this road before!

Thanks in advance

• What steps should I take to make sure everything is buttoned up correctly from a legal standpoint? Hire a local real estate attorney. Particularly, one that works with investors.
• Should I be putting this property into an LLC right away, or is it fine to close in my name and transfer later? This is a great debate - get advice from your attorney on state-specific issues regarding this. Insurance is KEY though.
• Are there any specific documents or professionals (attorney, title company, etc.) I should definitely have involved at this stage? Attorney and title company.

Find a local loan officer. Someone they can meet.

I'd be happy to take a look.