All Forum Posts by: Charlie Fitzgerald

Hi Ramces,

I'm in Las Vegas and would be happy to assist anyway I can.  I've been here for 22 years and have been both an active investor and a passive investor.  I have worked in RE Finance for 16 of those 22 years and I am with a very well respected private lender currently.

Let me know if I can be of assistance.

Charlie

As a general rule of thumb, most lenders will use 75% occupancy, unless your actual Financials show less.  Debt Service Coverage Ratio's are based on whatever overlays a particular lender puts in place.  1.25 - 1.75/2.0 is not uncommon.  A lot depends on the depth of the borrower and the details of the transaction.  There really is no hard and fast "guideline."

If you are good with the payments that x will be due with a  20 year amortization, I'd take the loan on tge primary for 20 years, locked in at 4.5% for the fulll 20 years vs only 5 on the loan against the investment property.  In the future if rates go up (they will), you won't necessarily have to refinance.  If they improve, you can if you want to.  I would ask your friend at the bank if that's the lowest rate he can get you.  It's a little high for current market on a 20 year fixed on a primary residence, unless your getting a bunch of lender credit to cover closing costs.  Also, see what the 15 year Rates are.  If it were me, I'd be inclined to do the 15 year.

Yes.  But they are few and far between and difficult for most foreign nationals to qualify for.  Towards the end of the year/first part of 2016, there will be a better option in the Nevada Marketplace for these loan types.  If you would like to connect, I can keep you apprised.

Having lived in Las Vegas for the past 22 years, and being an investor as well as a private money lender, I can tell you that the current market will absolutely cover property management service fees, and leave plenty of cash flow income for the owner.  Wise shoppers with the proper positioning of financing, are realizing returns of 20-30% net of all fees and expenses.  The rental market in Las Vegas has historically been vibrant and will continue to be so.  The transitory nature of some of the residents here, keep it that way.  Homes that sell for $200-$250k often rent for $1250-$1400 per month.  Homes that sell for $150-200k often rent for $700-$1000 a month.  Homes above the $300k price point are renting in the $1600-$2200 range and up.  Property management fees may seem like a cost that is easy to recapture buy "doing it yourself", but I will willing pay the fee to keep my rentals 90% + occupied rather than realize income on 75% +/- occupancy dealing with it myself.  Additionally, having a management company deal with the repairs and maintenance is a big benefit as well.

I've got awesome pvt money loans structured exactly for Fix/Flips & /Buy/Hold Investors.  If I can be of service, let me know.