All Forum Posts by: Jon Burns

In my experience as a private lender I have funded several deals where the investor had little to no money in the deal. The investors were able to do this by buying the property cheap enough, and using a hard money loan where the purchase price, rehab, and closing costs were less than 70% of the ARV (max loan amount). Once the property was tenant occupied, they went to a conventional lender and received permanent financing at 75% of the appraised value.

While there are added cost associated with using hard money and a double closing, the investors were able achieve the results you seek.

Hey Robert - let's connect.  I have both bought and loaned money in and around the Spring area.  

Kingsley - In my opinion, you should develop and look for both institutional as well as private lenders.  It is important to understand the pros and cons of both, what kind of deals can get done and by whom.  It is also important to note who is a credit and borrower based lender versus an asset based lender.  And depending on the deal that you are working on, it might be more advantageous to use one type of lender over another.  

Congrats on taking the plunge. 

That first deal can be the scariest and the hardest to pull the trigger on, so my unsolicited advise, make a goal of getting 1 deal before you worry about number 2.

Matthew - While this may not be what you want to hear, the truth is whether it is now or in the future, you will get stuck with a property with no tenant for a period of time.   If you expect it and financially plan for it you will be fine.  

George makes a great point, you need to dig deeper and understand the market.  Larger, higher end homes are taking longer to rent than smaller more affordable homes (at least in Katy).  And it may be the area you are looking at may not be a great rental market.  Lucky for us, Houston is a large market, with several great rental areas.  I am confident you can find one close to home.

There are several other aspects that go into renting a property, all of which make a difference to the time it takes to rent a property.  The more proactive you are about marketing your property the better off you will be.

Hi David I am interested in your sub-to, please send me what info you have to my email address.

I am based out of Katy, and own property all of Houston (Baytown included) I would be interested in finding out where else you look for deals.  Thanks