All Forum Posts by: Sandeep S.

Hi @Johnson H.

I know you mentioned 1.4 rent to buy (incl. rehab) ratio as a good deal in Houston. I haven't been able to get deals at 1.4 but I am able to get at 1.30 to 1.35 ratio. I generally go for newer properties - so that is one factor.

I thought I will provide an update on this first acquisition I had done in Houston. I closed this deal as planned in beginning January. The rehab came within budget (~$7K).. And it got quickly rented at $1325 (which was above my estimate of 1275-1300).

So I called my "experimental" first buy in Houston as success!

I have been busy buying several more since then. And have a baseline first deal - I was able to get better deal (than this one) every time. I will write about those purchases in another post.

@Johnson H. - did you pull the trigger on buying in Houston? I would love to learn about your experience.

Hi @Johnson H.

I will also try make it up there and get to meet all the big-shots of BP community in the bay-area!

I am an out-of-state buy-and-hold investor in Houston. I wish I could attend this meetup. I will try to organize my next visit to Houston around the next meetup you folks will have. I am sure tonight's meetup will be great!

I can confirm that it is a legit RE brokerage firm. I have actually one REO property from them!

@David J.

I am investing in Houston. I am working with agent(s) and PM(s). While turn-key will be much easier - that is just not interesting enough! I focus only on REO and short-sales. I closed on my first acquisition last week in Spring! I am in contract for the 2nd one in Baytown (closing in 2 weeks). My plan is to buy 5-7 properties this year and then finance the whole portfolio in a commercial/blanket loan. I plan to hold them for a long time (I don't enjoy selling part :)

Which areas do you invest in? And how do you finance? I have no commercial financing experience yet. But given that conventional lending process is so horrible - I am looking forward to the world of commercial lending!

Hi @Laura R. - it is an older topic but very relevant for me now :) I am also in silicon valley and have reached the 10 loan limit (that you reached in 2012). I am hoping you have found some solution to the blanket loan problem that you can share :)

Interestingly - I have also just started invested in Texas....

I would love to hear from you if you found any local lenders or lender from Texas..

@Waylon Themer - Nice to meet you! May be all I need to expand my business is to connect with portfolio lenders (like you) who do business in Houston.

Would you lend against a "pool of rental SFR" in Houston (of course assuming DSCR and LTV numbers make sense)? What would be typical terms for such a loan?

My local banks (credit unions actually) do not lend again properties in Texas.

@Jared Rine

Quick question: Do you also lend against out of state properties (specifically Texas)? Also - could I get a commercial loan against a "pool" of Single Family homes? (e.g. 6-8 SFR, valued at $130K each)

I also got in touch with B2R Finance few days ago. I wasn't ready to get a loan right away but wanted to plan for it (I expect I will be buying 4-8 rental properties in Houston this year as my home California market - deals have dried up).

I already knew I could not use B2R for purchasing properties. However, even bigger put off for me was when I found out that within the first year of purchase - they would not even consider appraised value, but instead only consider 85% of purchase price as "value". In other words they will give 65% of the 85% of purchase (and value all the equity I built by remodel/repairs, etc. also at ZERO). In other words - I will essentially get ~50% LTV.

Being out of state, I am anyway going to use property management company. But this issue with "new" purchases means that I can only use B2R sometime in 2015 for my case.

Anyone knows any other lenders that would lend to pool of properties? What are your plans @Mike H. ?