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All Forum Posts by: Kris Holt

Kris Holt has started 1 posts and replied 14 times.

Post: Suggestions for my 1st Investment: Should I start with a BRRRR or focus on cash flow?

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

@Ximei Yue I think you've come to right place. I can't think of a more extensive network of investors to lean on for advice than BiggerPockets. BRRRR seems to be the way to go and then scale, scale, scale for the income that you want to achieve. Some recommend the STACK method also. I would identify a market based on your current capacity and begin to network online and here on BP to form a solid trustworthy team to help you get going. Let me know if I can help!

Post: Looking to make new connections!

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

Thank you!

Post: New to Landlording and Perplexed

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

Lexie,

First of all, congrats on the acquisition! Second, it's always helpful to use an honest, experienced real estate agent or broker when making a purchase like this. Everyone has provided great insight so far, but ultimately your obligations as the landlord and the tenant's obligations are defined in the lease. This is the unwavering legal document that says who has do what, when they have to do it, and how they have to do it. You should never waver yourself from this document. If you or the tenant are not following the terms of the lease, that party is in breach of the lease and need to be put on notice with intention to follow through on the implications of the breach. Usually this means that the tenants have to provide access (within reasonable common notice), have to cooperate in access to make repairs (if they don't they would be liable for any additional damage caused by delay in repair), and subject to paying for a locksmith because you had to change the locks because they wouldn't give keys or provide access. Is it always that simple? maybe not, but you should be firm with the tenants in your expectations as the landlord or the lease means nothing, and you will continue to have a hard time. If you don't have copies of the lease, then that's where the experienced real estate professional comes in handy. These would have been provided in the due diligence period or as part of the deliverables package prior to writing the LOI. Firm up on these tenants and tell them to shape up or they can find another place to live. This is your property now and you have to keep things in order to maximize your long-term potential and value.

Post: Looking to make new connections!

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

Accepted AJ!  Thank you sir!  Congrats on getting a start on your real estate investing career.  Let me know if I can ever help in any way!

Post: Researching Renovation Loan

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

Tobi, 

Right now, best rates for us are in the high 9's for F&F (Fix & Flip) loans. Industry standard on ratios is around 70%LTV of the ARV and up to 90%LTC of the total cost of the project (purchase plus rehab). Some lenders say they will provide 100% financing, but I would check the fine print on those. If you already have a project in mind, just a couple of quick questions, and I can issue you a preliminary term sheet pretty so you can get a quick picture on what financing looks like for the project. We are out of Atlanta, so close by. Let me know how we can help!

Kris

Post: Need Advice: BRRR Strategy for 1st Time Buyer

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

@William Pichardo Kudos to you sir for the discipline to get where you are.  Like Jaron said, consider it from all angles to make sure you have multiple exits.  Also, many of our investors like to keep their cash in the bank and use our money to make them more money to put in the bank.  When we underwrite our F&F's, the guidelines are in place to make sure you have a healthy profit margin so if we see anything glaring that should be re-considered we can walk through that in order to make sure everything make sense before proceeding.  We can also look at scenarios where you have to refi cashout so that you have a broad-based understanding of all options.  Let me know if I can help! 

Post: Refinancing a hard money loan

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

Jared, to answer your question, yes, it is quite easy and possible to accomplish well within that timeline. Seasoning and vacancy are a consideration, but a DSCR lender should be able to consider those items accordingly. Happy to help if needed!

Post: Chattanooga Investor Friendly Lender

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

Connor,

I'd be happy to help, but need to know more details around yourself and the property. Is this a DSCR loan?

Post: Is 80% LTV Cash Out possible on a new BRRRR rental?

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

Josh,

The answer is yes, but it's takes a few more pieces of info to say truly what's possible.  I'd be happy to jump on a call.  We wouldn't have to dive too deep and could issue you a preliminary term sheet pretty quickly, so you know what you're possibly looking at.  Let me know.  Happy to help!

Post: What documents or information will I need to provide to a private money lender?

Kris Holt
Posted
  • Lender
  • Atlanta, GA
  • Posts 15
  • Votes 18

In short, we look at credit, liquidity, experience, and the project/asset.  Hard money loans are "asset-based" loans and are commercial loans by nature so you would want to have an entity set up as well.  All of items I mentioned above would need to be verified.  Once you complete the first project or purchase the first property, then we would have most of that already on file, and would need to just be updated accordingly based on how much time has passed.  I'd be able to issue a preliminary term sheet with just a few questions.  Let me know if you think it would help to have a quick conversation!