All Forum Posts by: Satyam Mistry

@Mark S. Roesel As far as I know it will be tough finding a bank to give a loan on this type of property due its value and class. I would suggest trying to save up for the repairs yourself as this is your first rehab and the values are lower than usual that it should be feasible. Going through the rehab process will also help you understand the costs and learning curves along the way. Getting an HML in the current market on your first flip on this type of property could be a mistake due to this being your first rehab your costs will be higher than expected, contracts will be harder to come by and work due to the pandemic, the time to complete the rehab will be longer than expected causing stress with a potential HML. After completing the rehab depending on the ARV you may be able to get a loan from a local bank through conventional or commercial financing.

@David Strunk Hello David, you can go to your deeds county office and fill out a Quit Claim Deed form that you can use to move the name from the company into your personal name. This usually costs around $10-25 at your county office and usually updates within a couple weeks online. 

@Mark S. Roesel A few questions to better get an idea of the scenario.

- What value was the home purchased at and did you purchase with all cash?
- Do you have the cash to rehab the property or are looking for a lender for the rehab?
- Have you completed successful flips previously or is this your first one?
- Would you be selling this after rehab or renting? Think about another strategy in case your primary plan does not work out. 
- Any particular reason you are looking for a lender based on the ARV?

*Looking for input from experienced investors on current strategies I am using to acquire & manage more rentals.

Current Holdings of 8 Single Family Properties
- 4 of them bought in 2016 with 20% down & 15 year mortgages.
- 2 of them bought in 2019 in cash that I rehabbed & planning to refinance on secondary market when 6 month seasoning period hits in 1-2 months. Using the BRRRR strategy on these. May consider leaving 5-10% extra cash in as equity to lower the loan amount. Will amortize these over 30 years for better cash flow & take advantage of the low rates.
- 2 of them bought in 2020, 1 in cash due to how competitive the market was had to close with cash & am taking a commercial loan on it due to not wanting to wait 6 months on seasoning period to free up cash, 5 year ARM on 20 year amortization. On the other 1 purchased am putting 20% down & financing on secondary market.

Purchasing & Strategy
I have purchased all current properties through the MLS. I am not at a stage where I have an interest to market to off market motivated sellers. I am making efforts to increase my network in the area & develop relationships with buyers who are spending time & money on acquiring majority off market deals & have spoken to them about keeping me in mind if they are looking to sell something they just acquired without having to do any work on it for profit as this method should still be a better deal than buying that property through the MLS if it popped up there. I will continue to look at MLS listings as well, but feel developing these relationships with regular buyers will land me better deals occasionally. Am also working with an agent that specializes in short sales in case an opportunity there becomes available. I am wanting to utilize the 10 secondary market mortgage loans I can have so will mix in fixed rate 30 year amortizations until I hit those 10 then switch to commercial loans. Working on getting a line of credit set up with a commercial lender so I can close with cash on properties then finance out of them after closing.

Criteria on Properties
- Value add potential (open to turnkey as well if numbers make sense)
- Good area likely to appreciate
- Capturing 10% below market value
- Use the 1% rule as a general metric
- Look for about $300 cash flow on single family homes if amortized over 30 years with 5% capex, 5% maintenance, 5% vacancy expense included

Thank you for taking the time to read & offer your input. 

@Elizabeth Zielinski Hmm, would keep an eye on it maybe even worth taping an envelope to the door that says the property address on it with your note and contact on letter inside and see what happens to it. Depending on what opens up maybe try contacting the Register of Deeds office in your area to see if they can provide any more information. 

@Gary L Wallman Hello Gary, would it be possible to reach out through your agent if you used an agent or to the seller if it was direct and switch the terms from cash to a financed offer? This is something that I would recommend exploring and may be something the seller would understand given the circumstance. You are still adding 2 decent properties that you as an experienced investor were interested in and not leveraging all your cash in case of a disaster. You should be able to get low rates through the bank that you are financing with and if doing a commercial loan close time may still not be too far out if they can do an in house appraisal. If they are in a decent B class neighborhood I think you will still be able to rent them out in the near future. 

@Elizabeth Zielinski Apologize if repeating with what @David Barnett mentioned above, but for example our area county assessor site says who the current owner of the property is, but also if you are able to view the tax payments due/made it will show the payment made or not made. If the payment was made it allows you to view a receipt showing who made that payment to the county assessor as it may be different from the property owner and will lead you to get more information. 

@John Nguyen Congrats on your decision to explore new markets. As an investor that is currently in the Omaha market, but looking for investment opportunities in other midwest markets are you planning on partnering with another investor in those locations you mentioned? If not what what strategies would you be taking to control project management and rental management?

@Kimberly Hoyt Sure no problem. I would still just budget 5% for maintenance never hurts. Definitely check with the HOA what their policies are and how monthly fees have trended over the last few years. Best wishes!

@Kimberly Hoyt Hello Kimberly, as mentioned I did not see a field for Capex or Maintenance I would add say 5% for each of those. With condos also may be interesting to ask how much the HOA was in 2016, 2017, 2018, & 2019 so you can see how it has trended and can keep in mind roughly how much they have been increasing. The $3800 monthly rent seems great, but seems very high end even more so with what is going on in the economy as of now. Is this what these condos are renting for and are there other rentals in the association that have similar rents? Are they open to have more rentals as some associations do not want above a certain number of them rented out or need approval from the board to be used as a rental.