All Forum Posts by: Jonathan Goldman

Hey all! I am originally from Augusta, but moved to Virginia Beach in 2011 and got into real estate, so I don't have my trades list down there. My parents are moving into a house at the end of this month and I'm looking for a good, reasonable carpet guy to swap 3 bedrooms and a walk in closet with some simple, neutral "fleck" style carpet with a little texture to it.  Any recommendations would be greatly appreciated!!

Quote from @Patti Robertson:

How strong are your debt to income, assets, and liquidity?  If they are strong, Towne is lending for investment property. They just gave me a loan for a flip purchase with just a personal guarantee and not even a loan application. They do have our current financials and we have our deposit accounts and a long history with them.  Local banks are your best options right now, but they all want cash deposits.

Hey Patti!

Yeah all of my accounts for my brokerage and businesses are with Towne! I tried them first, but it wasn't optimal and my banker never actually got back to me on if they had an appetite for it....

We have a small Fix and Flip Line with them that we use, but with current rates, they're way more conservative and only funding 75% of purchase and 75% of rehab and their rates are in the 9s which is not too far off from what I'm getting with Kiavi on my Fix and Flip with a lot more red tape than Kiavi.  (Kiavi's funding 90% of the purchase and 100% of the rehab as well which is the best I've seen out there right now.)

Towne, Old Point and Langley FCU... all aren't interested in it on a 2nd position which is mind boggling to me since it's a safe local investment with plenty of meat on the bone.

:( 

It seems like there's a HUGE missed opportunity to offer HELOCs or stand alone 2nd mortgages on investment properties with a ton of equity. you would think someone would bite on something in the 60% CLTV range, but apparently not yet! 

 Thanks for the input!

I wanted to see if anyone knew of a lender that does a 2nd mortgage on an investment property? 

Any recommendations are welcomed! Trying to think through how to access more of the equity in this property and redeploy into more opportunities.

My current loan structure is:

First mortgage OLB is around $347k at 2.75% 

HELOC is at $382k prime plus 3% (currently has a 12 month rolling cap so I'm just now shooting up to 9.5% this month but will be at 10.5% before I know it.)

The current valuation is $1.5-1.6M. 
The current use is a beach house vacation rental with about $140k annual gross bookings in Virginia Beach. 

1) I don’t want to lose the 2.75% rate IF there’s a creative way to tap into the extra equity. (Maybe there’s not?)

2) I would be okay if I could do a standard cash out refi at 5.5-6% and just have one $1M mortgage on a 30 year term Because it would still Cash flow as a STR. (But this doesn't exist right now unless someone knows where you could find this?)

3) the highest second mortgage I've found on a HELOC is $400k right now if I were to refi my HELOC into another HELOC.

Thoughts?

Quote from @Jamie O'Connell:

Quote from @Eliott Elias:

Use DSCR lending.

Fantastic idea, I just researched it a bit. Do you know of any good DSCR lenders?

I've used Kiavi (formerly Lending Home) on DSCR loans and fix and flips and have also priced through Aloha Captial. You could also reach out to a local mortgage broker in your area and ask them to tell you about any Non-QM products that will look at the rent schedule for the property on the appraisal. I have a local guy here in Virginia Beach that offers some DSCR / Non-QM products that are comparable and you get the "brand" of using a local lender on the offer.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $410,000
Cash invested: $300,000

This was a full gut remodel to the studs! We bought it as a second home and then ended up converting it from a 3/2 to a 5/3.5 and rebuilt the entire first floor. We added all new electrical, plumbing, drywall, two pools, new driveway, new landscaping. EVERYTHING! It was a huge project, but we got it done and we keep it rented as a STR during the spring/summer/early fall months.

What made you interested in investing in this type of deal?

Low 2.75% rate with 10% down as a second home on the acquisition and HUGE value add possibility.

How did you find this deal and how did you negotiate it?

MLS. I saw that the price was going down 40k every 30 days and before they could drop it another $40k I called and worked out a deal.

How did you finance this deal?

10% Down Second home loan at 2.75%

How did you add value to the deal?

Complete rebuild to the studs. Added SF. Updated everything. Added two pools and new decks, siding, windows, roof, solar heating for the pool.

What was the outcome?

We kept it as a STR and it grosses about $100k even while sitting mostly vacant from October to April.

Lessons learned? Challenges?

Hire someone to manage a big project like this. It was challenging because it was 45 min from my house and I was driving down there 3-4 times per week to manage contractors.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! A good friend of mine is a sales manager at Caliber Home Loans here in the area. I am a licensed real estate broker, so I ran my own numbers and negotiated the deal.

@Ryan Garrison thanks for the info! The Slack thing could work as we rarely have more than 2-3 going at once. I’ll look into the other solution as well. Thanks!

Hey guys!  Looking to see if you all can recommend a program that I can use to manage:

1) "Deal Flow" type stuff where I'm managing possible leads for investment opportunities or just regular real estate sales to be honest.

2) Marketing Emails and CRM to send clients birthday/anniversary emails or just general marketing campaign emails

3) Project Management of Flips and Buy & Holds to coordinate the different trades and when they're going out to a property.  (i.e. having a calendar that would link one trade to another trade so that the painter's schedule would automatically slide right on the calendar if the drywall guys needed 3 more days to let the mud dry because it's colder outside or something like that. 

4) Office or Team Chat (Pretty much all have this built in.)

5) Task Management that we can assign to users for the software. 

6) Any other cool stuff that I'm missing that would be helpful.

Basically looking for another Slack option or something that's integrated with Slack but lets us manage all the "stuff" in one place.

@Kenneth Hynes

I would always refinish them. Higher quality tenants appreciate them and will pay more rent.

IMO: We don’t want to be known as the generation who put sheet vinyl and carpet over hardwoods like they did in the 60s and 70s 😂.

Good luck!