All Forum Posts by: Eddie Starr

Greetings BP community. I'm looking for a property management company that can work with SFH in Indianapolis and surrounding areas, possibly as far as Anderson. However, if they can just work Indianapolis, that would be good.

The scenario is as following, and not sure if it's possible: I'm looking at acquiring a few SFHs. The minimum is a 4 BR. Each room could be rented to an individual: Active Duty/Reserve/Guard, college students, young and single professionals, etc.

I spoke with a highly recommended property management firm, and they said they only rent per unit, not room. Can anyone suggest a property management firm in the area?

Hi, BP. I'm familiar with options to refi a HML for SFH, but am wondering what options there are, to refi for commercial. Does anyone have any recommendations of companies to avoid, or use?

@Don Konipol:

Should we then focus on one commercial real estate deal, pooling resources, to cover the appraisal, and then use the 55% LTV?

Hi, BP community.

Here is my scenario, and I'm looking at what options I may have, to use this option. The basics are, as follows:

• The lender will lend on any type of real estate, that isn't land, notes, or construction/development projects.
• They will lend up to 60% of the LTV on SFH, or 55% LTV on any commercial (MFH, retail, etc).
• Price between $100K - $3M. Can go over, but is case by case, and $3M is the cap to fund within 5 (business) days.
• In order to lend, the title must be clear, and there must be an appraisal that is no longer than 9 months old.

As I'm finding out in my initial research, for commercial, no one has appraisals, or the appraisal are +2 years old. I've got a few ballparks, and commercial appraisals are looking at a minimum of $2k.

I'm considering looking at SFH, and putting a few of those under my belt, so that I can have the extra cash-flow, to be able to afford the appraisals for the higher yielding commercial. But, I'd only be coming to the table with up to 60% of the LTV, so IDK if there's a lot of SFH I could be closing on, or not.

Any innovative strategies I can use, that will allow me to leverage this 60% LTV, that doesn't require any additional out of pocket, other than the costs for appraisals?

@Reginald Willhite

I gave it a go, and honestly, it's not really worth it. I'd say probably 85% of the financial institutes, it doesn't have up to date info on the decision makers. Even then, 90% of those that they do have, won't respond. You would have to go, in person, to talk with them, and develop that relationship, and that's assuming that the small town community banks/credit unions even have any REOs or mortgages they want to get off their books.

Even the "REO disposal companies," those that handle dealing with REOs that didn't sell at auction, it doesn't really do much, unless you're local, and can meet, in person, with the same assumption as the above: will there be any, and any that doesn't go to big hedge funds.

IF you can find the notes, the only thing that's possibly of value is the list of reo/note buyers. BUT, you MUST be 100% sure that these notes/REO haven't been "shopped around." That's why I've not put a lot of focus on this area, because every time someone (broker or other) send me something, and I passed it to the buyers, without fail, they'd already seen them.

Greetings, BP.

Looking at the idea of doing some JVs, and one of the good bits of info I've noted is to JV on a deal by deal. Here is a possible scenario, and am wondering what sort of percentage of the cash-flow one can expect.

The JV investor offers to pay 50% of the purchase price; closing, appraisals, legal not covered. Only looking for buy & holds, and must be "move in ready." Can be SFH or MFH. After 12 months, would look to refi into a traditional mortgage or other long-term option.

The investor would mainly be a passive investor, which I think would be good, to avoid "power battles." What percentage would you offer in such a JV? Somewhere between 15-49%?

I'm researching various company options for HELOCs, and came across https://www.patchhomes.com/faq

Here are a few highlights:

We offer a debt free alternative to home equity loans and HELOCs. Our financing contracts are an easy way to cash out your home equity at 0% interest with no monthly payments. In exchange, we share in the future upside or downside of your home’s value.

We are able to offer 0% financing, since in exchange for interest free financing, we receive a percentage of the future home value appreciation. We rely on the future increase of your home value in order to generate a return for our offering.

Generally, our customers will access around 10% to 15% of their home’s value as funds through our solution. We will offer funds upto a maximum of 75% lien to value (LTV) or $150,000.

The initial estimate is free and has no commitments tied to it. Once you complete the final application, we charge a one-time servicing fee of 3% of the requested financing amount before transferring the funds.

In addition to the servicing fees, you are also responsible for the title/escrow charges and home appraisal fees. These are generally around $400 each respectively.

Does this sound like a good HELOC/Equity Loan alternative?

I'm looking into various options. I was looking on LendingTree.com, and came across their affiliate program. I also saw a couple other LendingTree.com like sites, and saw their affiliate program, as well.

What I was wondering is, if I'm talking with contacts in my circle about using equity in their homes for investing (and probably HELOCs), and when talking to them, would there be some issue (SEC?), if I email them my LendingTree.com, or other site's affiliate link? What about if it's someone I just met at a MeetUp.com networking event? I would have to establish a relationship with them, prior?

Overall, what have been your experiences for the best way to get one of these?

1) The financial institute one has their primary mortgage with?

2) A local, small town bank/credit union?

3) A big, national bank?

4) Or an online platform:

• https://www.lendingtree.com/
• https://www.bdnationwidemortgage.com/
• https://www.lendinguniverse.com

Pros/cons?

@Brent Coombs: They originally owed $110K. They have $20k left, so have paid off about $90k. The family owns the whole thing.

@Reid Hanley: That is what the county site has it listed as. The family's referred to it as timberland, and I know that a while back, they sold off some lumber to a lumber company. They've added a small "apartment" out back, a workshop, and a barn+chicken coop. They also, 2 or 3 years ago, added a new home office. It's very rural, up in the mountains, almost an hour away from the suburbs.

They've mentioned looking at possibly doing some things, and from the original lender, it sounds like they'd only lend based on the land, and possibly the timber.

So, I wanted to reach out to BP, and see if anyone had some suggestions.

Anyone familiar with any of these:

https://www.aprfinder.com/home-equity-loan-options...

https://www.bdnationwidemortgage.com/mobile-home-e...

https://www.lendinguniverse.com/borrowersmobilehom...

Again, thanks for the feedback!