All Forum Posts by: Mark Munson

Hi @Jason V.

I would seek a 2nd position lien before refinancing into a DSCR loan at a much higher rate. Your rate would be above 6%+ with the current DSCR rates and losing the 3.875% rate obviously isn't ideal. If that is not possible, then I would ask myself if the increased cost of capital to access the equity is worth the next deal's profits/benefits. Without having another deal in mind, it is truly impossible to concretely answer your question. If getting another $100k in cash unlocks a large flip profit to keep scaling/injecting capital into your business or a great cash-flowing property that outweighs the increased capital cost on the triplex, then go for it.

Hi @Sarah Anthony

I would look into joining your local Real Estate Investor Association. You can find other local investors there and just be intentional when you go. Set out to create a relationship with someone that can show you the ropes. In my opinion, that is one of the safest and cheapest ways to break into your market locally, without some "guru" selling you on their Real Estate Investing guide or whatever. Feel free to connect if you need advice and best of luck on your journey! 

That or learn how to estimate yourself. The wholesaler isn't a competent contractor or even a competent investor themselves 99% of the time, so you have to decide who you want to rely upon for estimates. You can use software, get a contractor, or learn it yourself. 

Hey @Jennifer Wells

Welcome to BP!

Hi @Thurman Wilson

You can use the Find a Lender button under Build Your Team on the top banner of BiggerPockets. I would call around to as many lenders as you can and just find one that you feel is the best fit and communicates well with you. I would also suggest joining you local Real Estate Investor Association, a quick Google search will pull one up in your area. Feel free to connect if you need any advice and best of luck!

Hi @Travon Moore

Welcome to BP and thank you for your service! Feel free to connect if you need any advice. 

Hi @Blake Williams

I own a brokerage and have worked with most of the largest hard money lenders in our space and at a high volume level. The one thing I always ask lenders is: Do you have a broker agreement? It is laughable how many don't and of those that do, they are not in your favor. I just simply will not work with a lender that will solicit my client, have no punitive language in regard to if they circumvent our firm or solicit them, and I want nothing to do with the lenders that want to directly face our client throughout the process. There is a lot of advice I can give, but start by offering only a few loan types and work with a select number of lenders until you know the ins and outs of the process. If you get enough loan volume to one lender, then you can start asking for a more efficient relationship. The biggest lenders are not going to prioritize someone sending a deal here and there. And lastly, you are only as good as the internal rep you get, don't be afraid to ask for someone better if your rep can hardly fog a mirror.  

Hi @Alex Silang

Always ask if they are direct to seller, if they are not, you'll want to know how many chains are in the contract. Ideally, you avoid anything more than 2 chains. The ARV and costs to rehab are not the wholesalers job to tell you, that is for you to do your due diligence and come up with the ARV on your own and the rehab budget. They only control the contract; they don't control your decision to sign it, they don't control your GC/rehab budget, they don't control the ARV. Learn how to comp correctly and learn how to project rehabs correctly and they become neither good nor bad, just another source of deals for you to underwrite and decide if they fit your buy box.

Hi @Nicholas Williams

Under Build Your Team on BiggerPockets, you can select Find a Lender tab. I would call around to a few lenders and get quotes, as each has their pros and cons. If it is a flip, and assuming your credit is okay, you should get 85-90% of the purchase price + 100% of the rehab costs. Avoid 6 month terms, avoid any "application" or upfront fees, avoid any one wanting you to escrow payments, and avoid full appraisals. Feel free to reach out if you need any advice and best of luck!

Hi @Lane Mcdonald

I have some clients in Billings that are larger investors that run a group there. Message me and I can connect you.