All Forum Posts by: Jordan Holt

Quote from @Brandon Sturgill:

@Jordan Holt On the simplest level the debt service loan would be based on the income the property generates...I'm a little confused on the details...it sounds like the property is a single family that is not occupied?...if the property is not generating income, how would you get a DSCR loan?...and you also mentioned a commercial cash out re-fi...isn't it a residential property? Do you have other units collateralized?

Has your lender provided these two options to exit the hard money?

It sounds like this is a traditional cash-out re-fi...if its a SFR property you would be at whatever LTV your lender is offering...typically 70-80% on non-occupied...that changes if its your primary....and conventional lenders would be reluctant to re-fi a renovation project if you hold title in your LLC...if you could add some details to the project, debt structure and exit options it would help get to a more accurate answer.

So I’m just finishing the rehab up. I am about to list it for rent. So it’s not currently occupied, but should be somewhat shortly. 

as for the debt structure my HML is currently at 11% and I have the loan for another 9 months if I want to keep it. However, I’d like to get my cash back to use on my next project. The loan would be in my LLC so commercial loan as in your standard 20yr am/5 year balloon. 

I’m just still green enough (this will only be my 6th door) to be dangerous with what I know, but not be an expert. Does all that make sense? 

I am just finishing up a rehab and its about time to get my hard money lender paid back, and get the money I put into the deal back out to rinse and repeat. The property is in my LLC and I am trying to figure out if I want to do a DSCR loan or do a commercial cash out refi. I don't really know much except the very basic things about a DSCR loan. Does it allow me to get cash back? Or just pay off the previous lender?

I am all in (including my own money) about 230K. ARV for this house should be at minimum 300K but the house directly behind it just sold for 375K about 5 months ago. Rent is probably $2,000 but worst case scenario I have no problem knowing that I could get $1800.

thoughts?

Don't think its a terrible idea. Everyone is looking for seller financed properties. But I do think the down payment may be to much for most folks looking in that price range. I have buyers in this area looking for seller financed stuff if you want to message me and see if we can find someone! 

very inciteful information from everyone. I have also been thinking of doing this. Last years "returns" on my 401K was 1%. When things were booming I was only at 18% return. IMO I can make more than that when leveraged for property. 

The birmingham, AL market is somewhat overlooked. 300K is probably to high for a good LTR. I have found our sweet spot is about 150-200K for properties. New builds that rent 1800-2000 are about 240K. No large capital expenditures in the first few years is nice. We are also seeing pretty steady growth and we are leading in the state for medical. I don't see that changing anytime soon. 

@Alicia C. not sure if you found one, but I work with a lot of out of state buyers as an agent. Our team, Birmingham Investment Group, only focuses on investment properties. We are investors ourselves. We have been suggesting Barrington Property management lately. They have done well for our clients and seem to be on top of things! Hopefully you don't need it, but if you do, hope that helps! 

Hey there bigger pockets world! I am a new agent looking for some advice/an investor who needs boots on the ground in the Alabama market. I have been in sales for almost a decade, it was more B2B than anything. My goal is to buy/sell 10 houses in my first year. I also am looking to invest in some properties in the Birmingham and surrounding area to help build my net worth. I am partnering up with an old college buddy to create an LLC for our investment portfolio, but I am also looking for any other input in terms of best price ranges to start with, perhaps types of homes to look for (apartments, townhomes, SFH etc.)

What tips do you guys have for starting out? I am already with a great brokerage, am setting up my personal website, as well as CRM tool to keep track of what I have going.

Thanks in advance!!

@Spencer Sutton hey Spencer! New real estate agent here in the magic city. Looking to do some turnkey rehabs in the near future. Got any tips? Besides listen to the podcast (I will, but it’s always good to connect!)

Hello! I am a new realtor in the area, also looking to become an investor on the side. Would love to speak with you about your team. Wouldn’t mind helping find some properties, but I also need some assistance in building a team around me to help me invest myself. Any help would be awesome!  

@Arianne Hellewell I’m new to the game, but looking to start working on the investing side. As of now I’m an agent in the area, looking to start building my network!

Would love to connect and see if I can help y’all out!