All Forum Posts by: Michael Whillock

Just jumping into this thread rather than start a new one and my questions are related to this one. 

Is the minimum loan amount shifting? I have been working with a MLO - delayed financing loan. We started the process with her lenders saying that we could do anywhere from 65% LTV to 75% LTV pretty comfortably with a minimum loan amount of 75K.

After starting the loan process, I learned that the lenders this MLO was working with were only offering 100K minimum. This won't work for the property because of the lower purchase price.

Are there still plenty of lenders willing to work with a minimum loan amount of 75K with a 65% to 70% LTV?

@Dan Deppen, @Mike Hartzog, @Chris Seveney, @Andy Mirza@Jamie Bateman

Thanks for jumping into this thread and sharing your knowledge. It has shed some light on the "pre-work" required to get started as well as the due diligence needed. Getting an attorney queued up to review collateral for an expected purchase as well as selecting a servicer in advance of the purchase are critical prerequisites to have in place. 

Regarding Servicers...I have seen some posts stating that some servicers are stronger in some areas than others. Do some work in certain states (judicial / non judicial) better than others or are they more aligned with specific service offerings such as performing vs non-performing etc. I assume the range in fees is attributed to the service offerings, perception of quality brand, etc. I guess a better question is "Are some servicers better suited to service performing loans and others non-performing? I would imagine that most good ones have a "sweet spot".

Attorneys obviously need to be licensed in the state in question. So, aside from that, what skills (or areas of expertise) do you look for in an attorney to review the collateral?

Thanks again for all your help.

This may be a "newbie" question but it seems like having a cutoff date specified is the only real way it would work without adding unneeded confusion.

What do you mean by "fighting them" to get them transferred? Is it just following through with them to make sure it is completed and done correctly?

Otherwise, it seems like that would be a contractual obligation on at least two fronts 1) new note owner entitled to the payment of the borrower and 2) new agreement (at least for that note) for the servicer since someone else is now responsible for the servicer's fees. Is that correct?

@Terrence Evans

Thanks! I will keep an eye out for local meetups and any resources available. 

I am fairly new to note investing and interested in purchasing notes. Most of the advice points to purchasing a performing note first before moving into NPLs. That makes sense and seems like a good approach to get more familiar with the investment. So, while I am interested in NPLs down the line, I would probably start with a performing note initially.

Assuming you have identified a note to buy (which I haven't yet) and performed due diligence, how long does it typically take to transfer title of the note and start receiving payments?

This is a timely post as I am interested in notes as well for my SDIRA so I appreciate any information you guys can share!

My limited contribution here would be recommending Paper Profits by Joshua Andrews. It was a pretty easy read.

@Alec Granger Thanks for your response.

I’m currently in in a phase of research, planning and preparation in deciding where to invest. Even though I live in Atlanta, I haven’t invested here. My other properties are in Memphis. So, I’ve been researching Atlanta a bit. Not just the areas but also lenders, property managers, contractors, and other providers needed to get a property closed, rehabbed, and rented. I do have financing with a pre-approval letter in place from a lender so I can move when the timing and deal is right. In short, I don’t want to secure a property without a plan. I’m also considering other areas out of state but that also requires more research and planning.

The economic landscape is also changing and I'm keeping an eye out on that as well. What, in your opinion, are you seeing that tells you the market is turning to support BRRRR?

@Robert Collins Thanks for the heads up. I have the details for the Atlanta meetup on 10/29 and am making plans to attend. 

@Ned Carey Thanks for the warm welcome. We have to start somewhere...right? 😂 

Hello everyone:

I joined BP about a month ago and am just now getting around to introducing myself on here. I figured it was time to check that off the list :).

I am currently trying to assess the current landscape to determine how and where to invest next. I work full time so that means I'm mostly a passive investor. Well, I have an LLC in my SDIRA. So, by definition, I'm a passive investor there. However, I'm looking to create another, separate entity for real estate investments, as well.

While I'm trying to educate myself on the landscape, I'm looking for a SFH as a buy and hold rental. Ideally, it would be a BRRRR but it doesn't have to be if it cash flows well from day 1.

My long term goal, I assume, is similar to most everyone else — to have passive income exceed expenses. In reality, I’m just a small investor with big goals. 

Finally, I’m looking forward forward to chatting with the group.