All Forum Posts by: Pat Mulligan

My ex-employer used Reonomy, an online platform that has off-market listings for all different types of commercial properties. Easy to sort and search and subscription pricing vary depending how much info you want on the property: owners' contact, comps, etc.   Very helpful IMO.  

what area of the state? 

Thanks, All!  

I appreciate y'alls information, opinions and ideas. I  guess I was too long out of the HM game.    I think I did try my best to line up financing in advance, @Russell Brazil.   I called 6 or 8 HM lenders in advance, including long conversations with ones that called me from an Connected Investors inquiry. I asked for terms and requirements, socked away cash, and applied to those without advance fees-- if they would let me.  Sadly, not any would talk specifics without a property under contract.  I found the Direct Lenders were requirements were as stringent as a traditional bank, but with a higher interest rate @Ian Walsh I really thought I could get a quick HML and either do a fast flip or get it rented and refi with my local bank.

I do think either my loan broker over-promised, saying to expect a loan 85-90% of PP; or the HML did promise the world just to get me hooked; or my loan became too complicated and the broker got tired of it. Not exactly sure which (?) @Michael Noto @Kevin Dureiko 

I do know that 25 days is too long to get an appraisal in. (thanks Appraisal Nation and company).  And NOW I know "new" flippers like me better have 35% PP + cc to spend.  

If I understand it correctly, next time: use private money @Randy Thomason(silly me thought HM would be quicker and easier than making those private connections), budget for at 35% DP and work with someone that only relies on a BPO (that way, you know the person estimating market value knows the area--- I added that!)

I really didn't mind the interest rate, or points- but more the increase in DP. I guess I just did not have enough cash to obtain it without hurting- and of course the poor servicing that allowed this to drag on for 6 weeks. My ego is bruised too, to think that after 28 years of being a RE Broker, property manager, investment owner and experienced BRRR'er, I was being asked to cough up the same $$ as a "newby" -- oh well.

My spouse thinks we should only by  poo-boxes for cash, pay for rehab with cc's and repeat over and over until we have enough cash to go bigger.  Anybody's thoughts on that?  

You guys and the BP forum are really great. Thanks for being here! 

:o)

I have a property under contract and have been working with a loan broker FOR OVER A MONTH! I'm in clear danger of the seller's patience running out. Was told we "passed" the lender's test: 730 Credit scores, plenty of $ for DP and reserves, years fo experience as RE Broker and PM, plus 2 rental properties and hx of BRRR. 2 weeks later, " the lender feels you do not have enough recent flip experience" and terms are up t 20% DP plus 4, not 2, points. Waited 3 weeks after ordering the appraisal for the ARV to come in 10K over as-is. WHAT?!? They want me to order a new appraisal before they would consider financing.

I contacted another lender to do a buy and hold (this is really a good deal for either a flip, or rental). The lender says he will do a "maybe" a 10% DP and rates 9-12% on a short term loan. No guarentees, of course, before another appraisal, and an application as extensive as Wells Fargo's. Property is under contract for $195K; CMA (not appraisal tho) is $325. I really hate to lose this deal.

I have never used hard money before and I feel so stupid here. My questions are:  

1) if CI and friends are so "excited to lend you money" why is it so hard to borrow with good credit +cash without the lender spending all of yours? 

2) is my loan broker experience ( dragging along, bait and switch) typical of working with a broker

3) Anything you would recommend that I could do in a hurry to save my deal? 

I would appreicate any help you could give me.  Thanks in advance

Pat

Would love to join in. I own a STR in L.A. and Airbnb rooms in our home in Atlantic City. Planning to expand our inventory soon and think I can give and gain help in a STR group.

Thanks for your post, Jason. We are considering doing the same thing with one of our Airbnbs. 

We have a lot of estate sales around where we live.  I am not sure how lucrative they are, but they seem to sell a lot (most?) of the household stuff-- and they will sell anything you want, even used linens.  I do know our local companies charge nothing upfront except a small advertising fee, and then take 30% of the total receipts. You don't have to set up or organize anything. 

Wondering though-- has anyone done this before? and have you made any money? 

Thanks in advance for any insight. 

Pat

Thanks for the info, @Dan Mahoney

Good to know, Thanks @Anton Watt  

I scour the MLS for buy and holds, and I usually go thru the list agent initially because I have certain questions I like to ask. I have come up against some list agents who are too busy or can't be bothered to show their listings that do not have a contractors lockbox.  

I am looking for an agent to show just a couple of props/week average and make a commission.  If interested, PM me.

Full disclosure: am a licensed VA Broker and would look for a a 25% referral fee back to myself.

 Anton, I have an Atlanta question for you.  Some listing agents are telling me Sec 8 will pay $850-900 of the rent and the tenant pays additionally-- up to $1200-1300 or more in not so great areas.  Is this a bunch of nonsense, or have you seen this? 

thanks in advance, 

p

Regarding the MLS, I was advised by a coach to be the first one to call on a new listing, so I am checking the MLS every night at 9:00pm and up making calls at 7:30. Never closed a deal this way. I would often get a shot at negotiating(after the list agent say the seller was "flexible), but we would never agree on value. The seller is not as motivated first week in the MLS. I found a better way to use the MLS. Seek out properties that have been on the market for a long time (your market will determine what is a "long time").

Not only are the sellers getting tired of being listed for sale, the agent doesn't want their clients taking the expired listing elsewhere.  List agents will be very motivated to get the property sold sell right before the listing expires (90 or 180 days, usually). Even though list agents are working in their sellers' best interest, they will help you in getting a more reasonable price as the listing ages, figuring the sellers' best interest is for everyone to get paid, ha-ha.  You would be surprised how cooperative the listing agent can be. 

As far as bank properties go, they will lower the price weekly after the first month or so on the market.  Try to be proactive and slightly offer less than the next reduction price. You can see how much they are lowering per week.  They are very transparent in their pricing strategy and it is a an easy way to get the property under contract for thousands less than list. 

Best of luck in your search, 

Pat Mulligan

Licensed RE broker for 27 years