All Forum Posts by: Mikael Winkler

@Nicole Sun

That really just depends on the lender. There are some HML that will go up into the millions of dollars lending on commercial projects. Like, I just worked with LimaOne on a single family project, but they offer up to $5,000,000 in funding on their rental property stabilization product.

Regarding rules and regulations, I think you'd just have to reach out to individual companies. I know with most, the basic structure is funding a percentage, usually 65-80%, of project cost, with interest only payments during the loan duration, with a balloon payment at the end. You're expected to have fixed and flipped or refinanced into traditional financing to pay them off.

@Ryan Aguilar

Welcome! That's great you're ready to get rolling. Yeah, if you're approved for $350k in CA, you'll most likely be fine out here in the Midwest. I'm in Columbus, which is really strong right now. We're in a good sweet spot of both cashflow and appreciation opportunities in many areas, with value-add. 

Wherever you invest, though, building that team you mentioned is key. Many say you need that "core four" - Realtor, GC/crew, lender, accountant. Though I would also throw in attorney and property manager, especially in your case, being out of state. Often times, if you start with one, typically the Realtor, they can introduce you to other potential members of the team. 

Good luck, and you certainly have a lot assistance on here, if you have any questions!

@Michael K Gallagher

Awesome. Yeah, I think it does depend on the industry the tenant works in. Ours are in ecomm fulfillment, so, luckily, very insulated as well.

@Michael K Gallagher

I agree with you about Columbus for sure. I think lower price points and a diversification of industry will insulate us more than some other, particularly coastal, markets.

Are you really seeing any issue with tenants paying? I know it was a huge concern at the onset of COVID, but from what I hear, most investors aren’t really seeing issues. Not much lower collection than typical. I’m at 100%, granted, I currently only have one duplex haha!

Really just a hypothetical here, but would investors, or I guess any high income earner, go for higher taxes if the government was held accountable and actually made to appropriately use tax dollars (infrastructure, investing in under-served areas, etc)?In this hypothetical, it would be a transparent thing, in which the public could see exactly where the dollars went. Because honestly, that’s my biggest issue with taxes - the inefficiency of utilization. Not the taxes themselves.

Thoughts?

 @Ben Morand

It has been mentioned a few times here, but I would also recommend a house hack starting out, if you're willing to live in a property. That allows you so many more options regarding financing etc. I did that on my first deal - a duplex in Columbus, OH. My wife and I used an FHA loan 3.5% down, lived in one side, fixed it up, refinanced, moved out and filled both sides. It's been a great investment. And, the beauty of the refinance is that it removes the FHA mortgage, and the accompanying stipulation that you live in the property for a year. We lived there for just about 6 months.

Honestly, you could even do this with a single family, since it appears that's what you may be interested in. If you're willing to live there, and do some renovations during that time, you can always use an FHA loan (there's a 203k FHA loan product that might work), refinance once the work is done, move out, and you have a renovated rental property.

That's just a rough example, but feel free to reach out if you have any questions!

@Michael Bangsal

I'm currently using Parker Realty Associates Property Management. I've had my property with them for about three years, with no complaints. They always act fast when there's a maintenance request and notify when a repair will exceed $300. 

I've also heard Solutions For Real Estate is a solid one. Their systems are very smooth and efficient, from what I hear. As I grow my portfolio moving forward, I plan to reach out to them to start a dialogue. Not that I'm unhappy with my current PM, but I always feel it's good to compare options. Best of luck! 

@Christopher Wilchensky

Absolutely! And depending on your capital situation right now, or once you start to build some, more creative financing options are always a possibility. Such as seller financing or working with a hard money lender.

I'm working with a hard money lender right now, LimaOne Capital. Most HML don't focus so heavily on the borrower financials, but the viability of the project.

Hello @Christopher Wilchensky. Thank you for sharing, that is pretty brave in and of itself. I think the best thing to do is start going to some local meetups. I don't want to say wholesaling because that always seems to be the standard line when talking about ways to build cash. But, maybe talk with a few local guys to see if that would be a fit for you. Really, anything that provides value in the real estate space, I think, would be viable. This is one industry that hasn't seemed to slow down as much. Maybe get in with a brokerage on the admin side and start learning, working in leasing, or wholesaling as mentioned.

Those are just some examples, but the basic goal is just to start talking to people locally. I think that will present some opportunities. And being as forthcoming as you have been here will only serve to help you. I certainly wish you luck!

Yep, what @Amanda Roderick pointed out is huge. 1mil plus new residents over the next three decades means we have to put them somewhere. If that projection is even close to correct, that only means property values will continue their current rise. 

Now, we'll see how the pandemic affects things, but Columbus is looking strong moving into the future for sure.