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All Forum Posts by: Ryan Blake

Ryan Blake has started 34 posts and replied 882 times.

Post: Shoot Down My Beginner Strategy

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Tyler Garza You are correct. The % of LTC is the amount funded of the costs needed. So the inverse of that % is the down payment. I would suggest not finding a stand in. Most, if not all, hard money lenders make the person signing on the loan also sign an affidavit. Having you live there, could put them in some legal trouble if it ever became public with what you are doing. The time you would need to live somewhere else would be the time you sell your current home (or rent it out) until the flip home is refinanced.

Post: Shoot Down My Beginner Strategy

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

I agree with  @Shiloh Lundahl. Only tweak, find a lender that offers 100% LTC (loan to cost) or as close to 100% as possible. That will keep your out of pocket lower and your $70k would allow you to buy two properties. When you refinance, move into one of the properties and then rent out the other.

This may create a brief moment where you will need to live somewhere else. This is because Shiloh was right, hard money loans CANNOT be for a primary home, ever. If a lender tells you otherwise, I would really reconsider who you are working with. They would not be offering you a hard money loan (loan based on the hard asset) and instead they are lending to you as a traditional lender with private money. That would be a allowed but they should be doing more due diligence and requiring a lot more documentation than what an asset based lender would require. Know that if you want to do a cash out refinance on a primary home, it will likely need a full 12 months of seasoning (holding time) before you will be allowed to close. Your hard money fees may eat you up during that time. You may just want to do a traditional refi and take out a HELOC after a couple years as you continue to build equity.

Once you have your primary home refinanced, you should be fine. Get your personal home done first. Then do the second property with the other 1/2 of your $70k. You can always get a DSCR loan for the second property which is just an asset based long term loan (based on the rents or expected rents vs your income and personal ability to pay).

Post: Hello from a Texas Flipper - Excited to Connect!

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Rami Refaeli I do about 1-2 flips a year and add 1 rental. But I will be honest, the rentals I have been added the last 2 years here in DFW have negative cashflowed. I am using the tax benefit along with the principal pay down and appreciation to offset. Those are long plays for me.

Post: Should I Buy My First Rental Property Out-of-State If I'm Unable to Scout the Area?

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Diana Teng I live in Fort Worth but I would highly recommend Ohio for rentals at this time. Specifically the Dayton, Columbus and Cincinnati areas. The reason for my preference of the OH market is the price of homes compared to the price of rents. Texas has seen too much appreciation over the past 5 years with lower rent increases. I think this will correct itself over the next 3 - 5 years but it will make cashflow tight or negative until then.

I have a great contact of a Realtor that works primarily with investors who has represented a few of my borrowers that I can share with you.

Post: Seeking Property Management Pros in Dallas/Fort Worth!

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Shushyam Malige Sharanappa I recommend finding a local property manager. I would not use a nationwide group or larger regional group. I have not had good luck with them. I use a smaller local manager for 2 of my SFRs and a slightly larger group for my 6-unit. I would look into McCaw Property Management on top of the list you have.

Post: New member introduction

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Marembo Alexandre Welcome to the group. Hope you find useful information. I work mostly with investors doing just what you are seeking, the BRRRR strategy. I think it is by far the quickest way to generate wealth. It doesn't have the immediate cashflow that flipping does but it will help you get to where you want to go.

Post: RAD Diversified SCAM ALERT!!!

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

Was RADD not an additional guarantors on the loan? Did they make the investors sign the loan without any buy-in from them? If they did, that stinks. That means only the investors are on the hook for the damage to credit. Sorry if that is happening to you.

Post: Looking to network

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Johnny Jones I am a lender in the DFW area but we lend in the major metro areas across the state. We offer referral bonuses and have 100% financing covering the rehab and the purchase. Let me know if that is something that the investors you work with are looking for.

Post: Investment property in Houston

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Arun Maheshwari Richmond and Rosenburg have effectively become immediate suburbs of Houston with the continued sprawl. It is a good place for flips. Rentals are tough based on the rents vs the purchase price of homes out there. It all depends on what your requirement for cash flow is.

Post: Funding First Deal

Ryan Blake
Posted
  • Lender
  • Texas
  • Posts 928
  • Votes 701

@Jay Stanford What area is your first BRRR deal in?