All Forum Posts by: Robert Leonard

Yes, that appears to be what GC was suggesting. He is very good at explaining and answering questions about how he analyzes deals.  It’s a rule of thumb and if I understood his use of it, he suggests that he is including some of the transaction fees added to the bank financing to come up with using “the 7 factor” to capture or round off to estimate the cost.  To get the bestt answer, I recommend catching one of his live broadcasts and posting the question to him.

The 7% that GC is talking about at the 12:20 mark on that video is an interest rate that he is paying to someone who is lending him a down payment.  It is a number that is negotiated with a private lender/investor who is providing down payment money in this example/scenario he is discussing.  He then uses 7% as what he called a “rate factor” like you would use a rule of thumb. He is using 7% to account for fees and expenses that are to be expected as “usual” costs of a transaction.

Get the book Commercial Mortgages 101. It shows you exactly what a commercial lender is looking for.  Even if you are dealing with SFRs, it is still commercial lending.  The portfolio lenders you hear/read about looking for are commercial lenders.

Hello and welcome to BP @Edward Powers! There are lots of Baton Rouge investors here on BP. You can also connect with a lot of them at the Baton Rouge REIA found on meetup.com/the-ring

This is a networking event for investors at all levels.  Whether curious and looking to learn and get started or experienced, all are welcome.

Go to meetup.com/bplakecharles to get more details and to RSVP.

It is free of charge to attend, but please plan to eat and drink with us.  They let us use their private meeting room for no charge because we bring large groups of investors who buy food and drinks.  Thanks for your support!

Congratulations @Account Closed!  Glad to see your success!

Welcome to BP @Carmine Costantini III I am a buy and hold investor and I have several contacts in your market who offer wholesale deals.  Glad you found the site!

https://www.meetup.com/BPACADIANA/events/254670317/

Our topic is using Self Directed IRAs for real estate investing!  If you would like to connect with local investors and learn some things that can help your business or investments, join us!

There is no charge at to attend!  Walk-On’s Bistreaux allows us to use their meeting room for no charge, because they expect us to buy food!  Come hungry, the food is always good!

There is limited seating and we expect to “sell out.”  RSVP at the link above to attend!

Hello @Destiny Prince, what type of investing are you looking to do in Lafayette Parish?

How've you been Patrick?  They will most likely be valued by comps if there are many others like it in the area?  You are buying based on investment value to you.  Your lender will be able to tell you which method of valuation they will consider.  They may consider both methods?  

You can also discuss the loan structure with your lender to find out what options they will give you.  To have the most flexibility in exit strategies, you will want to know how the lender will credit your loan if you sell one of the two properties?  Sometimes, if their lending criteria changes after you've owned the properties for several years, the lender will want to credit your sale proceeds toward loan paydown and effectively not allow you access to as much equity as you want from the sale of one of the two properties.