All Forum Posts by: Jordan Ryan

Quote from @Keira Hamilton:

Quote from @Jordan Ryan:

Hi, good stuff! I was wondering when you bought the laundromat were you able to get financing like sba or did you have to pay cash since it was such a small amount in general? Also I know it can be hard to get financing if the seller is hiding money on taxes and it looks like their not making much money. Thanks!

We paid cash. The sellers were only taking cash offers so we didn't look into SBA financing, but I think it would have been hard to do since there wasn't the right amount of historical cash flow. I'm an SBA loan broker, and overall it's tough to finance laundromats. Some of it has to do with the same sorts of challenges you see with smaller sized businesses in general - mom & pop shops aren't always keeping the best financial records or doing their taxes the correct way.

That’s what I figured, thanks again !

Skip Genie has pretty good numbers decently accurate. I personally wouldn't just mail a letter, that should be one part of your strategy, but I get many more leads from cold calling. You have to separate yourself from the crowd. The guy above said he had 54 lbs of letters after a year so how will the seller choose you out of all that crap. You have to learn the art of cold calling. There is definitely an art to it. Branden Mulrenin has plenty of great YouTube videos to help you along the way. 

Joe Fairless - Best Ever Apartment Syndication Book, A-Z with everything you could possibly think of about starting and running a successful syndication. 

If it has significant upside value, you should consider flipping that yourself or find a partner who knows what they are doing to flip it and split the profit. There are usually plenty of flippers who are having a tough time finding deals no matter where you are. Any way food for thought, good luck with whatever you decide to do!

Hi, good stuff! I was wondering when you bought the laundromat were you able to get financing like sba or did you have to pay cash since it was such a small amount in general? Also I know it can be hard to get financing if the seller is hiding money on taxes and it looks like their not making much money. Thanks!

Quote from @Jose Delatorre:

Hi Jordan do you mind sharing who your top lenders were and why you chose the one you ended up going thru. I also have a 3 family that I'm trying to refinance with a DSCR and I am concerned with the cash flows its in Chicago, IL. Also I am trying to hold onto it for the next 10 yrs at lease so if the 54321 offers me the lowest rate I would lean towards it. Credit is 740+. Thanks!

Hi , I pretty much found many of them to be around the same but what I do recommend and what I did was call as many local banks and credit unions as I could and ask them rates , amortization schedule, origination fees, pre payment  penalties , refinance options if rates go down , as many things as you can think of  and write it all down for each one. Most of the time you can find a local bank or credit union that will beat these country wide lenders In my experience. If not try KO at investor property loan . Or Robert Porter Launch financial and see what they have to offer. I had a much bigger building under agreement 15 unit launch financial had my rate in high 6’s with 30 year am which was great the deal ended up falling apart (not their fault seller misrepresentation) but I do like them and you can usually get them to lower their fees. Both are super nice people easy to talk too I’m just not sure if they have minimum size  def worth a call! 

I actually have been working with someone at the one brokerage they are high up on my list as of now. Thanks for the info 

Yea I’m getting mostly around the same numbers honesly just very hard to get a a decent coc return with these rates. I run the numbers with even 5 or 6% and they great but 7+ just not good 

Quote from @Derek Brickley:

I would agree, the rate is about par.  However if you are looking for options without points then you would either want to consider taking a higher rate or increasing the term of the prepayment penalty.  Plus, if you are using a broker their broker fees will typically be an additional 1-2 points.

Yes it seems about as good as I’m going to find. I have called about 10 companies pretty much hearing all the same things.  Thanks for reply 

Quote from @Devin Peterson:

Quote from @Jordan Ryan:

Hi everyone just wondering the opinions on the best companies out there for DSCR loans? Trying to buy a 3 family that needs some TLC maybe do a BRRR. I have talked to so many lenders around the same like 7% with 1-2 points up front . Any advice ? Thanks

Seems about right with what you provided. Can you give a little more insight on your credit? Market rent? And anticipated LTV. How much deferred maintenance is needed?

Yea great credit 750 , market rents are high so close to 1% of purchase price which is great for near Boston these days . One lender I spoke to said they can do DSCR on it 7-8% no prepayment and up to 90% ltv which sounds great because then I don’t really need to refi right away because not puting the 20% into it I’m find puting 10% if it can cash flow a little and on to the next so they are in the lead for now. Thanks