All Forum Posts by: James Jeffery

Dakota, 

Thanks so much for this lead with Ryan I had a good conversation with him.

Hi,  I am looking for a lender to refinance a land development deal . Looking for a loan of 1.5M to complete the project which will then be a mid term rental and AIRBNB with an estimated value based on cash flow of 3M.  Current debt is about 650K. New build will be 5,000 sq feet elevatored building of four units right on the beach and ideal for weddings, airbnb and corporate events.

Hi, I am looking for a lender to refinance a mixed use property in Quincy at 55% of value . Loan amount is 1M and property produces 180K of net operating income. Also have three small multifamily deals there totalling 1M that need to be refinanced and are also at low LTV's. Anybody know of a good lender for Quincy Illinois. Credit is high 600's/

Jacoby,  I think you need to clearly define your objectives as an investor and let those control your decision making and criteria.  Do you just want to make a return of 8-12% and be secured in a relatively safe position as a private lender with a known successful flipper, or do a joint venture with them or do you want to risk your money in a rehab.  What you need in this business to avoid big mistakes is a mentor.  I would also try and stay close to your home area , say two hour drive so you can go over and watch the progress and learn.  Not having a mentor will be a very expensive adventure for many first time investors.

80.2% or renters paid rent in May only a 1.6% decrease from a year ago. The Federal government is looking at a bill of $100 billion for rent relief.  How that is going to work I do not know.  Landlord's need to challenge these in court and push back.  Maybe having all the local REIA's and the number of people they represent writing and calling might help.  What if you cant pay the water and electric bills that the tenants owe and they get utilities shut off and sue the landlord.  Its a mess.  I Washington State can you legally convert the security deposit to rent before the tenant moves out with unpaid rent ?

You might want to find someone with an idle IRA that could be converted to a self directed IRA and is willing to replace your PML at a lower rate.  I would offer three months reserve payments to get the lower rate and then look to refi in 12-18 months.  I think getting a one year tenant or six month tenant in both units and then applying for refi would be a lot more effective than running an AirBNB and a vacant unit.  Perhaps there is an opportunity for a corporate rental there at a lower rate but higher than average monthly rent.  I have friends with a lot of AirBNB's that have navigated this way successfully

@Joe Carter Do not file bankruptcy figure out a repayment plan with the credit card company, retenant your properties and get a partner who has successful experience and work a few flips with them . 80K is not a small number but not worth filing bankruptcy over that is for damn sure , nor is 130K. Better to have a judgement than a bankruptcy which will screw you up for 7 years .

@Carl Crump Carl, congrats on making the jump. The capital markets have changed dramatically in just two weeks . We were looking at a 54M deal with 80% LTV and were quoted 3.5% on on 30 year 10 year amortization. A week later the rates were 4.25, time to close went from 60 to 90 to 120, one year mortgage payments, real estate taxes and insurance reserve . Needless to say our offer went down 7M. The flip side of that is for smaller deals this is a great time for master lease options and seller financing and asking seller to escrow three to six months of rents from proceeds to offset rent losses ! Good luck and keep us posted !! Opportunities will abound !!