All Forum Posts by: Noah Bussanich

I currently own a few single-family rental properties that have yielded excellent returns based on my projections. Now, I’ve come across several off-market properties with strong potential, and I’m looking to scale by raising capital. However, I’m not entirely sure how to structure a syndication for these larger deals. Could you recommend any resources or provide advice on the best way to approach this?

Thank You

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Quote from @John O'Leary:

Hey Noah,

Are you looking for Underwriting guidelines for the Hard Money Lender?

Hey John,

I'm looking for underwriting for myself as the buyer / investor.

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Hello, I'm about to close on a BRRRR and I don't have any underwriting spreadsheet for a hard money loan into a conventional refinance after the Rehab. If anyone has anything that I could use to check my numbers, that would be great, Thank you!

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Hello, I have a deal I am about to close but I don' have a good way to underwrite my BRRRR. It would be using hard money for 1-3 months and refinancing into a conventional / FHA loan. If anyone has a spreadsheet I could use, that would be great!

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Quote from @Chris McKay:

As someone else pointed out, the goal of a refinance after renovating a property is to get out your down payment as well as some extra due to the increase in assessed value. You can then use this money to continue expanding your business.

There are a number of ways that you can use financing to cover your construction costs for renovation, but it's important to weight the pros and cons of each. Before I address those, I want to point out something that caught my eye in your post. Asking a bank for a 600k loan on a 500k house with 100k in rehab means you're looking for 0% down?

If this property needs enough rehab work, many banks won't consider lending on it to begin with. You having no skin in the game would make them additionally wary. For DSCR products and private/hard money, they're going to want a much higher LTV, especially if this is your first deal.

Before you go looking further into options, do note that using bank financing like a 203k to cover construction costs comes with a lot of extra paperwork. They require forms from the general contractor of the project before releasing any funds. Initiation of these loans can also take a bit longer than normal, which could hurt your chances of closing if the seller grows impatient. In such a hot market, expediency is such a valuable commodity, and being able to close promptly will greatly increase your reputation for future dealings in your market.

Good luck.

Hello! Thanks so much for the information. I would be doing 10-20% down on this property!

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I found a property that I am really considering purchasing. It would be a 500k purchase, 100k rehab and 700k ARV. I would then turn it into a rental.
1- First off, I am having a hard time wrapping my head around the fact that refinancing out of the loan amount would make my mortgage higher. What is the point of refinancing out to a higher amount for a higher mortgage if original purchase price has a lower mortgage? (plus higher property taxes due to the new assessed amount)

2- I don't have cash for the rehab yet, so any advice on going about sourcing the 100k? or should I ask for a 600k loan and lay out my plan to my mortgage broker?

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Quote from @Account Closed:

Quote from @Noah Bussanich:

I'm looking to buy my first creative finance, owner occupy deal. My ideal place is a multifamily and I'd house hack. I've sent out a couple hundred letters to owners in the area. What are other ways I can find off market deals to owners to pitch creative financing to? Also, what should I be doing with my time to maximize my chances of finding off-market deals for creative financing in the multifamily space?

What market are you looking in? OR is going to be expensive and competitive. We've built a whole training about "off market, creative finance" and while it's very profitable, it takes more energy to find properties that qualify. In your case, you'd need to identify what a multi-family means to you. I've worked with folks to find 4 units and I’ve worked with folks to find 200 units. There is a huge difference in how to approach them.

Hi Mike, Thanks for getting back to me. I'm looking for a duplex 6b/4b, Or 3-4 unit. How would you approach these?

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Hello,

I'm looking to buy a seller carry deal. I'm looking on and off market. I spoke with a broker today and they said when I put an offer in, I still need to have a "pre-approval" letter from a lender to the seller. Is this true?

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Portland, Oregon

Hello, I am looking into buying my first rental property and i'm exploring different creative options for financing the purchase. I understand seller carry and assumable loans very well, however I am having a hard time understanding how to buy a house creatively when the seller still has a mortgage on the property. I'm mainly looking into Subject To and Lease options. I still don't understand the structure and how everything works in this kind of creative deal. Anything helps, Thanks!

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All Forum Posts by: Noah Bussanich

Noah Bussanich has started 7 posts and replied 10 times.

Post: Structuring a Syndication

Post: BRRRR Underwriting Help

Post: BRRRR Underwriting Help

Post: BRRRR Underwriting Help

Post: Deeper explanation of my BRRRR project

Post: Deeper explanation of my BRRRR project

Post: Lead Generation - Creative Finance

Post: Lead Generation - Creative Finance

Post: Pre Approval Creative Finance

Post: Question about buying with creative finance