All Forum Posts by: Account Closed

Wow. This turned from questions meant to ask a seller/listing agent into a pissing match over cap rates. I'm glad that account is closed (unless he wants to come back from the dead and haunt us all with his miserable arguments). 

That being said, thanks to all of you who did contribute as some of this information was helpful to get the ball rolling on what to ask.

Key Takeaway: Don't burden the seller too much with questions before constructing an offer. Have a good grasp on rents at comparable properties (Craigslist, local property manager data), and expenses (tax assessor, utility providers, home insurance etc), and come up with an income number. Get the offer in there with "market" diligence stipulations and then really drive down into the "pennies and cents" of some of those assumptions. 

Thanks to those who really stepped up to help. Got a good list here.

@Evan Bell; i guess there's not specific joke about chase, but i think what @Nick Watkins was trying to point out was the inflexible nature of "money center" banks (think wells, chase, bofA), you now the big boys with trillions and billions in assets to really help out/build that relationship. I've definitely seen smaller community banks and credit unions (https://www.ncua.gov/analysis/Pages/locate.aspx; link to look up your local credit union); that have a smaller balance sheet and less assets as the money center banks as more receptive to building a relationship and finding a product that suits your need while also helping them earn some money on deposits.

Good Luck and keep us all posted. FYI, PenFed is not a bad route, very easy to deal with.

@Austin Fruechting; 

Thanks for the detailed reply on my questions. I really like how you "bootstrapped" you way into the first few deals and then really developed an system to rinse and repeat. That way you could focus on deal making and getting stuff done (which at 100+ units is no small feat!).

Very useful the guidance you have given me above, and hopefully you'll be able to do a guest post about it soon or on your own blog. I think there's kind of this "black-hole" when it comes to being knowledgable on how to build relationships with a banker, and what the difference is between the nationals (wells, bofa, chase, etc.) versus the local credit unions. Either way i'm certainly getting my feet wet and motivated by your progress.

As an update, just got approved for another $10K unsecured LOC with a credit union, so further expanding my banking relationships based on your advice. I guess the old adage "closed mouths don't get fed" holds true to some extent. the worst anyone can tell you is no; ha.

Thanks again.

@Matthew Hipp thanks for referencing to a podcast that talks more about it. very helpful. I just got approved for a $10K unsecured LOC with my main institution and then got approved for another $10K unsecured LOC with a credit union. Cheers to those trying to get some deals done!

@Austin Fruechting Great podcast. Reminded me a lot of podcast #197 with Chris Heeren from the financing perspective. You guys both really figured out how to leverage your local financing resources to start investing. I immediately took your advice and applied for a personal (unsecured) line of credit with my bank that I have deposits with. Ultimately I got approved for much less than I was expecting and even less much less that the deposits I had in my savings acct. alone.

I was just curious if you woudn't mind expanding on your experience with getting your line of credit set up via a guest post on the BP blog or just by sharing it through your own personal blog. The questions that I have remaining and that I'm sure some other listeners have are as follows:

1. Seasoning Issues - did you have any problems with the banks that you were using to finance the property, when it  came to using the line of credit to fund the down payment? If so what were those, if not was it a result of a banking relationship?

2. Were you able to increase the personal line of credit over time, by establishing good use of the line? (Curious if i can increase my limit in the future).

3. Did you establish multiple personal lines of credit at various different banks? I'm considering moving over some deposits to another bank, and establishing another personal line of credit in order to increase my LOC capacity. Have you had any success with that?

Thanks again for hopping on the podcast and any clarity you can provide above via your blog etc. i'm sure would be greatly received by the BP community!

-Rob

@Aaron Mazzrillo thanks for the quick turn-around. I've been collecting info on direct mail prospect in excel but its a pain in the "tookus" let's cal it to add to that data and then recall only certain line items that match the criteria i'd like to mail to.

Hopefully by tinkering around with access I'll be able to build a simple-yet-effective database.

A cloud-based CRM/Database would be ideal, huh? I like where you're going with this.

Are any of you all familiar with how people are using Microsoft Access as a way of saving property information and being able to filter their results for direct mail. All i can conclude is that one would build a large database of property owner information within access and then have the ability to filter that data for any direct mail campaign.

This is a strategy that @Aaron Mazzrillo has touched on before in Podcast 37, but he uses SQL server.

@Brandon Hicks what's your criteria (LTV, absentee, years owned, age of property) etc for your direct mail campaign? I know it's proprietary but "skeleton" of most essential criteria for finding these seller financed opportunities.

Also, what resources could you point me to that you used to learn about buying on land contract?

Thanks for all your help you've rocked it out over the past few years!

@Johnny P. because I am a broker am am doing the same thing as you listed above. I don't need to make the offers I need to make the listings. It has worked well for me over the past few months.

@Gerald Harris wow this is some great stuff. I am familiar with Sean Terry's videos but never ran across that so thank you. For sharing this knowledge with us all. Any other videos you come across detailing search criteria on YouTube please post here.