All Forum Posts by: Jesse Rivera

Hey Victor!

If you're wanting to develop Self Storage, eventually you're going to need a Feasibility Study.  I would normally recommend Bob Copper with Self Storage 101.

However, if the question is wide-open and you're wondering what in general would be best to do with that land, there is a lady out of California named Jo Beth White, with Development Services, Inc. who conducts Reverse Feasibility Studies for commercial projects nationwide.

In other words, instead of asking, "Should I build XYZ?", she'll come back and say, "Based on what you've got going on THIS would make the most sense."

Granted this is not preliminary research, but instead having an expert assist you and there would be a cost associated with that.  However, when the time comes to do so...

(Please note that I have no horse in this race or financial incentive with either Bob or Jo Beth, just folks whom we've used before and still recommend.)

I hope this helps.

Scott

 

Conv 20% down is #2 in line, #1 is of course cash buyer. VA, unfortunately, and it's stupid, and I could rant about this because I think it's immoral and wrong, is somewhere around 5th place, above down payment assistance but below Conv 5% down, hanging out with the FHA bad credit buyers.

@Miles Fulton

I am mortgage broker who works almost exclusively with Non-QM.  Let me tell you it can be a roller coaster!

There are many factors to consider and directly effect your experience with a Non-QM loan.  

1. Your Broker or Loan Officer - Huge impact.  If you find one of these who looks to throw applications to lenders to see how many stick, you are in for a bad experience.  If you find one that takes the time to give you the attention you deserve, you will have a much better experience!  The person you work with needs to know your situation, ask questions, and answer yours.  Great LOs are teachers, not just number crunchers trying to feed a machine.  

2. Your Lender - if using a broker, you may not have much control over this. If you are shopping lenders, they need to specialize in Non-Qm, not just offer it because. DSCR, for example, is quickly becoming a very popular loan option for investors. Like most things in a free-enterprise market, what happens? The other guys want more market share and think they can add those loans to their portfolio too... and give it little to no attention. Horrible experiences... I am willing to try any lender once or twice. That's it. I have my go to's and they are experts at Non-QM. They don't even do Conventional or Agency unless they are forced to... Lol...

3. Your Knowledge and Education (Expectations) - Do you research and dig deep.  Every scenario has its ins and outs.  If you educate yourself well enough to know what to expect, you become a much easier investor to work with and the Broker or LO will become more engaged with you.  You may even form a long term business relationship.  I only say this, not trying to contradict above, as some brokers/LOs are more than willing to teach but we all have our limits.  Even newer broker/LOs will respect you more if you can demonstrate that you understand the process and are willing to LISTEN to their guidance.  If you feel like the Broker/LO doesn't know what they are talking about and you aren't sure either, then you both should probably part ways...

4. Your Realtor - I can't emphasize this enough. If you are using a wholesaler or finding your own deals, please please please make sure you find a Realtor who is FAMILIAR with Non-QM. These loans do not usually close in less than 20 days. I have a lender who closes regularly on DSCR in 25 days or less. 20 is a stretch. To be safe, always plan on 30-35 as appraisals are still a challenge in most of the country right now. If you have an upity Realtor who wants to rush things and close quickly, take a step back and think about that relationship. You may not see it, but that type of Realtor is going to hound your Broker/LO or processor. There is little we can do to speed these loans up. They simply take more time. To compare, if you have a broker/LO who is telling you 45 days to close, find a different one. They are having internal issues or are backed up. Aside from Appraisals, these loans do NOT take that long to close.

Lots of info and now my fingers  hurt from typing... Lol...

Cheers!

Hi Vikas, I do not know about either of the cities. But stick to the basics when it comes to trying to select your market. Population growth, job growth, income growth and a landlord friendly state (I think RTP wins here). Make sure you check with your realtor to share lease (rental) comps, that will give you a good idea about rental demand (cost and days on market). Afaik, rtp will not cashflow unless you increase your equity in the deal.

Lastly, cannot stress enough on having a good team on the ground, one you can trust.  The point here is, talk to PMs in both cities and get a feel of rents, management expenses, management styles etc. They will give you an idea of preferable neighborhoods, preferable house layouts for renters etc...

Since you are going to be a oos investor, just curious why restrict yourself to these 2 cities? It's understandable if its because of your familiarity to the city in the past. But you maybe giving up greater cashflow/growth potential by leaving the rest of many wonderful cities out.

hope I did not confuse you further :)