All Forum Posts by: Jonathan Franchini

Hi @Jillian Sidoti, can I also have access to your program on YouTube? Thank you so much

Hello BP,

I own a 10 unit apartment building in Birmingham AL and I am looking to refinance. Property is worth about 450k and I owe 220k. It has been very difficult to find a commercial lender for such small loan. Most Commercial lender won't go below 1mil. I would like to keep buying more MFP in AL, but I have been running to the issue that most local lenders will not lend to out of state investors. Has anyone had this hurdle before? I have been searching and calling many lender and not luck so far. Anyone know of any programs or lenders that will finance such scenario. Thank you so much.

Investment Info:

Single-family residence fix & flip investment in Sylmar.

Purchase price: $307,000
Cash invested: $165,000
Sale price: $660,000

Completely gutted to the studs rehab. New 750sqft house in the back 2+2.

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

The lot size and the upside potential of adding square footage for larger profit

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

found it on the MSL through one of my agents

How did you finance this deal?

yes

How did you add value to the deal?

Adding a second house (ADU)

What was the outcome?

very lengthy but successful.

Lessons learned? Challenges?

lessons learn: get more familiar with new building codes regarding ADUs. Challenge, getting architect, and DWP to move faster and not take their sweet time.

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

Agents and Hard money lender

@Brie Schmidt Once again thank you for the wonderful information. Are your investments in Chicago? I wanted to first invest in Chicago 3 years ago but had no boots on the ground.

@Ryan O'Mara Thanks for the comment. That sounds more what I am looking for. I will PM and inquire more about it. Thank you so much

@Ali Boone Thank you so much for your input. I really appreciate it. I currently have 1 out of state investment property and three in the pipeline. I am also in the process of buying a property in CA as a first time buyer and that is why I do not want to lose my (1st time buyer) option going the Fannie Mae route on my investment properties. I will definitely go Fannie once I purchase the CA property. I want to get to the 10 properties by the end of the year if not sooner.  There many hard money lenders now offering long term rental loans (30 years). I am assuming this is because the shift in investments from flips to long term hold. The long term demand was great enough for them to create a product. Only drawback is the rates. They are typically higher. By the way, great website. Really motivates me. I want to get to your level one day.

@Brie Schmidt thank you so much for sharing your thoughts with me. I was under the impression that rates on portfolio or commercial loans were lower than hard money. Do you have any experience with portfolio loans? If so, will you share your thoughts with me. I have a hard money lender that will charge me 2pts and 7.5%. I thought I could do better if I were to shop around. Thank you so much.

Hello BP community, Has anyone faced a hurdle to obtain loans from local banks, because one is not a local resident? I purchased a rental property in Birmingham, Alabama and have contacted every local bank there and almost all of them do not lend to out of state investors. The only two banks I found out will lend to out of state investors would only do Fannie Mae loans. I could go that route and get the Fannie Mae loans, but I would like to purchase more than 10 properties. Has anyone had the same experience? Did you find any solution? I am aware I could hard money but interest on hard money start at 7+. I truly appreciate your input.