All Forum Posts by: George Despotopoulos

@Rigo Medina. Hard Money loans are usually interest only. There are lenders out there that will give out a loan to first time investors but keep in mind your rate will be much higher and your LTV will be lower to take into account the limited experience.

@Jon Latch. I have seen investors particularly active in Georgia, Ohio, Florida, Michigan, South Carolina, North Carolina, Tennessee, Texas. 

Having said that, you need to do your homework on the property and the area. Some things to keep in mind: 1) What is your exit strategy for the property? 2) Can you get a loan on the property? 3) What is rental income for the property? Does it give you at least a 1.25x DSCR (lenders usually look for that before granting a loan) 4) Is there new companies or jobs coming to the city? 5) How long are homes on the market for in the area?

 Happy to discuss further if you have any other questions. 

@Baron Hicklin. Agree with @Account Closed. Pay a third party to do the work. There are several reputable vendors out there that you can use. 

@Zachary Gwin. Congrats to everyone on this thread with successful flips. Keep them coming...

@Rick Pozos. Agree with your distinction. 

Bottom line is there are companies out there with capital willing to grant loans for rental properties with a longer term. 

@Samuel M.. Whether it is a turn-key or not, you need to do your homework on the property and the area. Some things to keep in mind: 1) What is your exit strategy for the property? 2) Can you get a loan on the property? 3) What is rental income for the property? Does it give you at least a 1.25x DSCR (lenders usually look for that before granting a loan) 4) Is there new companies or jobs coming to the city? 5) How long are homes on the market for in the area?

Happy to discuss further if you have additional questions. 

@William F. Congrats. 

Would you look at buying and holding other properties by potentially refinancing the property and taking out a decent amount of your initial equity? 

@Rigo Medina. Yes there are a few smaller specialty lenders out there that will go out in loan term. These lenders are usually backed by large private equity or hedge funds. Rates are usually 6.5%<.

@Rick Pozos. Agree with your response. I was just solely talking about private/specialty lenders described above. Very rarely have I heard of HML going out more than one year.

@Jennifer Brewer. Did you reach out to LendingHome, Lima One, LendingOne? They may be able to help you with the non-recourse aspect. You should expect to receive a lower LTV and higher rate based on the non-recourse component of the loan.

@Joseph Lewis. Most of your due diligence on the renter has to happen upfront. If the renter is always current during the term of the least then not sure there is much you can do. With a month-to-month lease you can probably get away with checking in sporadically on the home to ensure it is being maintained.