All Forum Posts by: J. Mitchell Bernier

@Christian Walker My initial thoughts are be man to man. Tell him straight up what type of partnership it will be. I have found that when doing business with family, the more you treat it like business the more they respect you. And if at the end of the year you want to give him “a bonus” so be it. I know it’s tough but the sooner you treat him as a equal the better.

Good Luck!

@Aaron Alsup no that is not normal. Go talk with local lenders with local banks. Most communities banks will finance all the way down to 25k. Good luck!

@Zack Karp is correct. You need to talk to local banks in the area and ask if they do "in house" mortgages. These are the mortgages that we do that we keep on the books, also known as portfolio loans. Because the banks keep them on their balance sheet and don't sell them off or get some type of govt guarantee(FHA, VA, USDA) the rate will be higher on average, but it's way more flexible on terms and down payments. Hence why the rate will be higher more risk. Good Luck!

@Anthony Vander Meer as a lender I have done many of these type of deals for my customers. Really easy for the customer and the best part is you will get a good idea on the ARV from an independent appraiser. I really have not seen any where the appraisal has been the issue at all, so that wouldn't be a big concern in my mind. Good Luck!

@Chapman Walsh Yeah I am sure he can give you some insight. @Tommy Cangelosi reach out to him.

@Karl McGarvey I use small local banks. So they are 3yr Terms with a 15yr amortizations. So their is a balloon. The interest is higher because it is more risky, but again It’s a way to get a property with no money down. So as long as I’m getting 125 a month I’m happy.

These loans are commercial loans in the eyes of the local community banks

@Karl McGarvey Do Both!

Go talk to a local lender about paying off your vehicle and then using the vehicle title as the down payment. The value of the vehicle will work as extra collateral which makes their LTV still look good. Your monthly free cash flow will be lower, because you didn't put any money down, but as long as you are still getting good positive cash flow you are in good shape.

Plus now that interest on that car is deductible too! I have done this multiple times.

@Rob Barry hate to see this. Especially when you did work to get it section 8 ready which isn’t cheap.

This has been said already but call HUD/DCA and report the tenant. Most likely the tenant will lose their voucher and they lose that great benefit.

@Justin Thorpe Yes tech is booming, but so is Gold. Which in normal market conditions would mean that most people are fearful of what’s ahead. Unemployment is at the highest level since the depression, Corporate Bankruptcy are at their highest level since 2011, and now if congress doesn’t do anything to help child care industry you could see 13% of the workforce leave to take care of children based off a recent survey. Which will drive down more GDP.

The market is on a tear because more money has flown into the system from discount brokers. Most of these gains are not from sound investing fundamentals. I heard this phrase said on CNBC multiple times last week and this phrase tells me to stay away. “The Market can stay irrational longer than you can stay solvent.”

Sounds like to me everyone knows the market is acting irrational, but no one wants to get off the ride too soon. Me, if something doesn’t make sense I stay away.

Yes even small markets in rural South Georgia it’s crazy. Valdosta, GA is where we have majority of our rentals and we had one who is moving out and it got rented the same day for a new tenant. My property manager is begging me to buy more.

And even the sales are crazy. Most houses in the markets I’m in would take 20 days to get under contract average. Now houses are getting under contract in 5 days or less. That’s in markets like Albany, Valdosta, and Bainbridge Ga. and those markets are combined less than 200k populations