All Forum Posts by: Mike Garland

@Ryan Fennick

Ryan, I first recommend talking to some local community banks in you area.  Put together a folder with 3 years personal tax returns, a current personal financial statement, real estate spreadsheet listing your properties and their numbers (value, loan balance, payment, gross and net rents, etc) and your analysis on the subject property.  Also, provide a bio on yourself and your experience.   

Visit with their commercial real estate lender and just discuss what you are looking for and see how they can help you.  Do not have them pull your credit until you are satisfied that the likely hood of them financing you is pretty good.

And yes, your subject property is considered commercial.

@Kimberly Banks Fawcett  

Thanks for responding.  Yes it is a seller financed note that has been in place a little over 5 years.  I have a copy, just not the original and I do not think the seller of the note knows where the original is.

@Mike Hartzog

Thanks Mike, I had read about the Affidavit of Lost Note and was hoping that would work.  Since this is my first note purchase I am using my real estate attorney as well as an attorney friend of mine who has a title company.  I informed them via email after I put this post up asking them pretty much the same question, so hopefully tomorrow they will also have a solution.  

I definitely wanted to put it out there to the BP community for ideas.  Thanks again for taking the time to respond!

As the subject says, I am purchasing a note from someone I know.  I have copies of the original note, but he is having difficulty locating the original promissory note and deed of trust.   

Any recommendations on what can be done to make this transaction happen?

@John Truong. Thanks for that info. I know for portfolio lenders there is a "seasoning" period most of them want to see before basing the loan on the ARV of the property when the project is done.

If an investor did the project right and is all in at 70% ARV, then they should be able to BRRRR and end up with $0 money in it.

I do not have much experience on the conventional loan side.

@Tony Castronovo putting together the appraisal package is a good idea.  To clarify for others, Tony is not hiring the appraiser (lender will not use an appraisal ordered by the borrower) he is providing solid info to the assigned appraiser when he comes to the house.  Tony will be listed as the contact on the appraisal engagement letter the lender sends out.

I also recommend putting together a similar professional packet for your lender including the analysis, rehab costs, tax returns, personal financial statement, real estate portfolio and bio on your self.  That right there will put you immediately ahead of the pack.

Tony, quick question: what seasoning requirements were the end lenders requiring? 3 months, 6, 12, 24, before they would use the ARV and not purchase price +rehab costs?

@Kyle Zochert, as Rick said you really need to understand that area.  There is planned development in the area and there are business incentives there, but I would anticipate lower rents initially than what you are thinking.   Use more conservative rental income figures in your calculations to be safe.

Good luck!

@Martin W.

There is a meetup tomorrow at Big Hopps at Huebner and I-10.  Not sure if I can make it tomorrow, but look it up on Meetup.com.  Not sure of the exact name but it is something like Beer and Real Estate.  @Chad Clanton may have more info.

Glad your here!

Steve,

I would recommend completing your profile, throwing up a picture and letting the community know a bit more about yourself to add some weight to your request.

Sounds like a good opportunity for someone looking to learn the ropes. 

Keith,

The good news is that you work in a real estate related industry and you have construction experience, thus you are not a complete noob.  Just make sure you come up with an investment strategy (BP has some solid ones) and make sure whatever you do, you stick with your numbers and do not deviate much outside of them just because you have a fall back "nest egg".   Analyse each deal as if you did not have that extra inherited cash would be a conservative way to go.

@Adriana Jimenez based on where it is, how about Airbnb?