All Forum Posts by: Johnny Quilenderino

Banks automatic no's. Commercial lenders and hard money lenders were the maybes. Blanket Loan and unconventional lenders are where the yes's come from. I submitted a lot of applications this weekend. Monday is going to be fun with all the call backs! Going to pack a lunch.

The thing is that this is only half the deal ... I could get 34 units if I had the other 25 percent down payment

So I have got a lot of immediate "no's" but I got a few maybes and one immediate yes but unreasonable rate without even looking at my financial records. Still looking for the commercial blanket loan or portfolio loan lender to fund the challenge. 

Estimated DSCR is 1.3 on the low end and 1.6 on the perfect world month.

Thank you for reading

Good evening BP,

I have been going through Zillow and Trulia and found 3 duplexs on 1 MLS (x2) and a 7 plex.

Hard spot is three different sellers. Three different sellers under the same real estate company.

Is it possible to offer full price, package them all together one loan albeit commercial?

So it would be 7 buildings, on 7 parcels under 1 loan. Are there any loan companies that would even bite at that? So far it has been slim pickings for loans but I like the challenge!!!!! I do have the 25 percent downpayment as required. I am still working the system to get rent roll and last years taxes.

Just checking the pulse of BP to see if anyone has tried this.

Thanks in advance.

Johnny

My goal was to make 1000 in rent a month by the end of the year (done). Scored my first two deals that bring in that amount. Now I am working on a 1031 tax exchange to bring in another 2000 a month. My stretch goal is to reach 5k by the end of the year and 3.5k if I cannot do the second 1031. 

You guys motivate me!!!

Will do! He also has 300 properties in the area, he should be able to give me some "other" background too.

@Mark Holenick I like the quote the more you learn the less you pay. 

My other two homes are near downtown in the historic district, these are scattered all over. I will ask my PM if he actually manages any of them to see if he has had "problems" with them. Maybe I can cherry pick the ones that actually rent smoothly, and get a great discount on the hard areas to rent or lots of CAPEX properties.

Two others that are under a PM. 

Ryan,

As soon as I get the inspections done I will have a better idea of what CAPEX are going to look like. This is just the first volley and I am trying to figure out how and what else I need to think of before possibly executing or backing out.

Andrew

I have about 30k in reserves not including the HELOC. The first proposal I am not even going to mention because I rejected it. It ended up at 200 dollars per door per month, which is unsustainable if you have more than one vacancy. As for bank financing I was going to use the HELOC (next year)and recharge it yearly and at the five year point what ever is left over use bank financing to pay off the loan. I am also getting about 3k a month in other rental income so after the initial brunt of CAPEX, I should level out and start chipping back away to get up to 300/month leaving me with 6.6k in rental income by the end of the year to start charging an paying in lump sums back to the owner. I think I am going to plan for about four months of negative income due to CAPEX and see how those numbers play out.

Thank you for all the tips!!!

@Alex Deacon I was going to use my realtor/broker/lawyer to ensure that my bases were covered. I used 5k as a liberal number for inspections. The last time I did four, and it cost me about 450 each. Maybe I need a different inspector. 

1. Great idea, did not think about it. I will definitely use my lawyer to ensure that is the case. 

2. Liberal numbers for repairs and vacancy is a must. I already rent in the area so I am familiar with the vacancy rates.

3. Liberal numbers are key. I set my bar 200 below zillow and rentometer, I do not know what other sites to use to check rent rates.

I submitted my proposal back to the seller to get about 400 per house, I eventually want to settle out at 300 per house and I think I will pull the trigger if the inspections come back ok. If the inspections come back as lots of structural and moisture damage I will raise my bid to 500 after (PITI/PM) per house or back out.

Thank you for the inputs!!!!!

Actually, yes it was ... only for 11 properties in and it came back with 12 when my realtor called him.