All Forum Posts by: Account Closed

@Bola Williams Lending has NOT dried up. However, lenders are adding additional overlays to protect themselves against equity reductions and ensure borrowers (and contractors) have sufficient cash flow to complete projects. If there are any specific projects you would like to discuss, feel free to message me.

@Marielle Walter

There is no such clause for residential property, investment, second home or primary residence.

@Marielle Walter Once a  loan is closed, the bank cannot request “money back”. In order for a bank to accelerate a loan (initiate foreclosure) the borrower must be in default (for residential loans this can ONLY be for lack of timely payment).

@Ryan Daigle The approach has not changed. The markets are always changing but my approach always remains the same. I keep my figures conservative.

@Ryan Daigle : Each transaction is examined individually. All factors are considered when placing any transaction with a particular lender, including guidelines, turn times, type of transaction and qualifications of each borrower. This is a policy which is always in place, regardless of what factors are currently affecting the market. There are always variables which affect the ability of either a borrower or a lender in performing at any given time. Careful analysis of ALL aspects of a transaction provide the best potential for a successful transaction.

Hello to all!

While we are all in quarantine, I am sure most of you are taking the time to educate yourself and learn more about real estate investing.

I have worked over 30 years in this market. During the last recession, I was able to acquire several properties [including single family, homes, offices, multifamily properties and retail] and was able to stabilize my portfolio. 

I am willing to answer any questions you may have.

ASK AWAY!

@Amanda Schlener 

I have been purchasing condos for decades. The successful bidder is subordinate to any other lien outstanding, 1st, 2nd, etc. that has priority interest to the foreclosing party (condo, other subordinate lender). The only exception is for taxes which holds a priority lien to any other lien.

Associations, take possession to get a non-performing owner off the books and turning the property into an income producing property, even if the final result is a loss to the Association. The property is maintained and generates revenue for whatever period of time available. In addition, it is common that a lender which holds a superior lien will then negotiate with the Association for a short payoff.

Investors who end up with a property and over pay are just investors who make poor decisions.

Location, location, location. Location is absolutely imperative for this type of business model. Your expenses will ALWAYS be more than a promoter discloses. Occupancy rate of 70% is extremely aggressive, although not impossible to achieve. The hotel industry occupancy rate is approximately 65% and hostel occupancy rates are somewhat lower. Initial costs can be all over the place, so any particular dollar investment could make sense. What you get for your money is what counts.

There is also a need to maintain the quality of the property. Having a class A property takes significant time and effort to maintain. A couple of negligent occupants could cause significant damage and require repairs. Maintenance and cleaning costs can significantly vary based upon how a particular guest treats the unit.

Research your demographics and determine exactly WHO your market is and what you can expect from them. This is a tough business and needs to be micromanaged. However, someone with a good head and a lot of energy can certainly make it work.

@Arif Uddin The question is broad. Do you have an address, neighborhood, the current asking price, the current net income, length of the lease, tenant, etc. All of these go into consideration when looking at a deal. Some deals give you a cap of 5%, some 7%, and more if lucky. But simply making a purchase just based off a cap isnt really the way to go.

@Vahid Zohrehvandi where is the property located?