All Forum Posts by: Joe Davis

Hey Guys, 

We are a lender based in Houston but we do loans also in San Antonio and Dallas. I owned a large wholesaling business for over 5 years in Houston and completed well over 500 wholesale deals. Now we have really shifted our focus to growing the lending side i was curious to see if any Tx. based wholesalers needed training/mentoring. 

After training we are considering allowing these wholesalers into a private group with the top 50 investors who have bought multiple deals from. These are heavy-hitter, regular buyers. Basically, if your deal is a deal - it's going to sell at a good % You will not need additional, expensive dispo tools or Joint Ventures. (We will guide you through the sell to the buyer).

In this group, you will be able to post your deals for feedback or to get one of these investors to buy.

Offer is completely free - just trying to gauge interest. What we get out of it......creating a group that some of our best borrowers can get access to good deals.

More than likely be virtual (zoom etc) and be an intensive, no-fluff training on how wholesaling is done, and what investors are looking for. Contracts, comps, hard money, sub2, brrrr etc. 

 Yes, generally you will want to have the tenants in place. On occasion, the lender can go off market rents. but expect a little conservatism. But again, seems like your property has plenty of spread and will easily conform to the debt service coverage ratio at $1,300/Month. 

Use a short term bridge product for 12 months or like others said, add a partner on paper that will get you over the much easier underwriting of a DSCR loan.

On DSCR you will see a rate increase or "penalty" if the property hasn't been seasoned for at least 90 days. Some lenders even require more.

Also - on a DSCR, you will need to have a tenant in place.

I don't believe you're going to find someone who will cash-out refinance you to LTV on whatever the AMC comes back at. Most will do the PP + Repair that you sunk into it, although looks like you have a pretty healthy spread so won't be capped by LTV.

If you are not desperate for the cash right this second, lease it out - wait until it's seasoned and than you will get better rates and cash out of it. 

 We use True people search or skip genie

 When you start out, you will want the full-service. They will review title commitment, draw up your docs and guide you through the whole process. Once you do a bunch of them you can start to work more off templates and then have them review etc. You are probably looking at around $1500 per file when you start - but i am sure this can vary. If you send me a PM I can point you in the right direction of one that does them nationally. 

 If you are not planning on doing more than one or two, you can use an RMLO that specializes in these. Texas Pride is one! Also, being in San Antonio, find Mitch Stephen on Facebook, I don't think he's on BP. He is the author of The Art of Owner Finance and is a wealth of knowledge. He is always happy to help too! Really awesome guy. 

Secondly, use a note servicer - someone like August REI or Moat Note - you don't want to be servicing the loan, and it's relatively cheap to have a 3rd party handle it for you.

 You need to work with an attorney that can draw up your closing docs. Deed of Trust, Promissory Note, WDVL, Payment scheduled, ACH agreement etc. You need to make sure these are water-tight, and your lien note is going to explain exactly what happens in the event of non-payment. Ie - that you have the ability to foreclosure to recover your funds and any associated costs. 

Hey Nick,

I am happy to lend any advice that you might need! Feel free to message me, and also happy to jump on a call.

Your best bet might be a local lender, but we have some options and can just generally help with any questions.

Joe

Also - 

Never rely on the wholesaler to tell you the seller is AWOL. 

Ask title if they have been communicating with the seller, and also ensure they mention the recorded memo. Our title company will actually file it on our behalf, and than send it. Adds more weight coming from title.