All Forum Posts by: Rudy Manna

Looking for a portfolio lender in Seattle area to refinance HML with sfh . Talked with Washington federal and they go till 70% ltv. Are there any portfolio lenders in the area that goes till 75% or 80% ltv. Looking for recommendations.

Thanks in advance.

Hi All, Have been buying in Pierce County so far, with Buy-Rehab-Rent Model. As you all know, today Tacoma/Pierce County is probably the hottest and fastest RE market area in Washington.

I feel, in-order to keep buying at a reasonable price need to broaden my search, hence considering Shelton in mason county. Are there any investors out there from Shelton? Love to hear on:

- How is the rental market there? 

- How is the liquidity? Do properties sell?

- Thoughts on long term potential.

Can you please tell me a little bit more about turn key light? I am doing BRRRR in my area, but now that Seattle market is becoming hot, looking to BRRRR out of state. I was looking for a turnkey service provider who help me execute, but I still make the key decisions around purchase and rehab. Are there turnkey providers that do that? Essentially Turnkey service provider, not turnkey properties.

Do any of the turnkey provide turnkey management service?

Basically, I want to keep control of purchase and rehab process. I want to run my comps, decide which one to offer and how much, with my agent. I also want to keep control of the scope of work. I will need a turnkey management service that will give me boots on the ground such as checking on the subs, taking estimates from GC etc. I will be travelling once or twice a month but want somebody who can check in as needed. In essence, I am looking for a turnkey service (while I own the process), not a turnkey property.

We are a high volume buy and hold investor in the Seattle-Tacoma area, but cash flow is drying up here, hence looking for out of state options.

 There are two ways to do this:

- Get 90% cost, rehab and points wrapped into the Hard Money Loan and then do a rate-term refi. You will have 10% of purchase costs into the deal which is usually only 5%-8% of ARV.

- Get 100% costs, rehab and points wrapped into the Hard Money Loan and then do a rate-term refi. You will have No money in the deal as long you can generate enough equity to support 75% LTV mortgage loan. However, the catch is that the HML will require you to put some money into the escrow as a collateral. You will get the collateral back when you do the refi.

We did both ways, and there are local HML in Seattle area which supports both approaches.

We are doing a brrrrr and the appraisal came lower than expected. We are having out of pocket expenses with typical 75% ltv investment loan (Its a refi of HML).

Are there potfolio lenders in the washington- seattle-tacoma area that do 80% ltv? any experiences/referrals welcome.

I live in Seattle area, and from what I see, I am also strongly bullish in the Seattle market. Per anecdotes I keep hearing, there are still 15 offers per houses for  every somewhat good house. typical 4 bed/3bath new constructions in areas like Bothell and Shoreline are going for ~$1M. Condos in South Lake union are just shy of a million. I dont think this is a bubble. Seattle is  becoming the hub of so many areas of Technology - Machine Learning, Cloud Computing, Drones to name a few. On top of that, with water and mountain on two sides, there are so much land to build.

On another note, a chunk of bigger pocket investors tend to believe the you should invest for cashflow, not appreciation. That is, frankly foolish. You can always predict long term appreciation. A vibrant city like Seattle, Boulder, or even NY will always beat out a dying mid west city in terms of long term appreciation, liquidity in case you need to sell, and rent increase. A good investment is always a balance between appreciation and cash flow.

Both are poor options.

There is a huge condo inventory coming live in Seattle area this year..On top of that condos are poor investments in general. You will run into assessments, HOA increases, unforeseen rental cap, and during the downturn condos are the first one get hit and last one to recover.

Most of smaller Multifamily in Tacoma and around doesn't cash flow good enough, they don't even hit 1%, more likely around .8%-.9%. On top of that , those are mostly older houses with quite a bit of deferred maintenance. I think folks starved of yield in a low interest time are pushing the valuation of MFH.

My advice will be to focus on SFH, if you persist you will pick up good deals time to time. From my experience in the market you can get better yield in SFH now, compared smaller MFHs.

 Can you please message me your guy? Exploring subdivision for the South Tacoma 2 house deal you helped close few weeks ago.