All Forum Posts by: KJ D'Costa

I'm interested in purchasing a lot in metro Atlanta with the intention of building an owner-occupied home within two years. I'd like to secure a parcel relatively soon and am looking for lender recommendations. If you are lender or have used one in the past, please shoot me their contact info. Much appreciated it.

Thanks for all the replies.

@Adrian Chu and @Brandon M., a 100% commission broker is exactly what I need. Thanks for the quick education.

@Seth Teel

Thanks! You know I'm keeping track of all the ways you're helping me. A future lunch is definitely on me.

Can anyone recommend a solid portfolio lender in the greater San Antonio area? I'm looking to build a long-term relationship as I'm acquiring rentals (in a few different ways, potentially) in the area.

Thanks!

@Leo B.

One of the strategies I'm looking at in my market is similar to yours, except I'm either using private or hard money to acquire the property. What I've discovered is that banks are more willing to do a rate/term refi vs. a cash out refi. I think the reason is that your refi bank prefers not giving you a big, fat check, which makes them very nervous. They would rather give that big, fat check to your previous lender. And because you had that previous lender that clearly you paid on time, it gives them warm fuzzies that you'll pay them diligently too. Doesn't seem logical, but apparently that's the deal. 

As always, if I'm wrong, someone can correct me. It seems like trying to navigate the labyrinth of banking options/rules requires a finance degree.

Good luck.

I'm contemplating getting my R.E. license to make my rehab deals more profitable. But I'm unclear on the broker/realtor structure. If I get licensed as a realtor, I have to sign up with a broker in the area, correct? And if I decide to purchase a home with the intent to rehab, in theory, I can keep 3% of the sales price, both when I acquire (if listed on the MLS) and when I sell, correct? But a percentage of the commission goes to the broker? If so, what's the customary split.

And if I acquire a deal off-market, how does my license affect the sale?

Lastly, because I don't intend to become a realtor as a profession, do I have to sign up with a broker or does the law state otherwise. I'm Texas, if that makes a difference.

Thanks for any clarification?

@Brandon Hicks

I've read this thread several times to determine if your strategy is viable in my regional market, but I keep getting stuck on the cash flow. I understand if you are able to find a seller who owns a property free & clear, the strategy works for both parties. The seller gets regular income now via interest payments and you via standard cash flow (Gross rents - (PITI + expenses)). But, if the seller already has a mortgage, he'll have to negotiate a purchase price and/interest that allows for the finance payments to not only cover the current mortgage payments, but also leave some profit in his/her pocket. How can you still cash flow enough to justify the work required to manage the property? Do you have a $ per door criteria?

Also, when you find your properties from your direct mail, I assume you handle all the paperwork as a realtor isn't involved. 

Hmm, I wonder if it would make sense to find a investor-savvy realtor to help locate potential properties, even if it increases the cash out of pocket to acquire the property? 

Anyway, I'm really fascinated by this strategy and think if done correctly, you scale pretty quickly in a larger metro area.

Thanks for all the great detail you've provided.

@Chad Clanton just PMed you.

Hi all,

I've been struggling to find wholesalers who aren't with the large wholesale firms for buy and flip deals. I've been to a few of the local REI meetings but have come up short. I'm now researching methods to uncover my own deals (direct marketing etc.), but I'm curious to know what methods have been most effective for experienced rehabbers in the area.

So do you:

Use wholesalers?

Find you own deals (DM, title company contacts, probate, drive for dollars)?

Or some other method?

Thanks!

While I like the idea of house-hacking a multifamily, none of the properties that can cash flow after I vacate are in areas that I would feel comfortable moving my family into. At least that's what I found. Nicer properties close to downtown or in the west Austin area (all the way out to Lakeway) will certainly cover your mortgage, but if you're financing above 75%, cash flow will be tough in the long run. However, I'm hoping someone can show me otherwise =).