All Forum Posts by: Scott Reynolds

Quote from @Rene Montelongo:

Thanks for responding Scott. When you say Direct lenders I am assuming you mean Hard money lenders?  I was reaching out to local banks to attempt to establish a relationship. But, for now it seems Direct lenders, if you mean Hard money,  is the way to go. Thanks again!

 Hard money is more of a type of loan then a category of lender. For example a lender can offer a hard money loan, typically interest only payments with a balloon payment for the balance at the end of 12 months. But the same lender can offer 30 year fixed interest loan. What I am referring to is lenders that offer non qualifying mortgage options. In other words their mortgage options do not qualify for Fannie and Freddy because they don’t have the same restrictions. 

Most traditional banks only offer 15-20 year loans on investment properties. But if you look at direct lenders they offer more options. Many will only lend to an LLC and they will typically be at a higher rate. But they will lend on 30 year terms on investment properties. There are many options with these types of lenders as they don't have to conform to Fannie and Freddy guidelines. They also offer options like DSCR (debt service coverage ratio) that can really streamline the application process because all they are looking at is the income generated by the property allowing a specific spread above that required to pay for the properties expenses. Depending on the lender these often range between 1.2-1.3 in my experience.

I have a SFR that I have completed the remodel on and have some final landscaping I need to do on the backyard as I take it live on Airbnb and was wondering if anyone had some good referrals for this.

I'm a new investor in the Dallas, TX area. I currently have two SFR and I'm looking to buy my next three properties in the first quarter of 2022. I have attended a couple of meet ups in the past but I'm looking for more networking opportunities with other local investors. There is a good group that meets on the first Saturday of each month but due to my W2 job its almost impossible for me to attend these. I was wondering if there were any evening meetups that offer the chance for investors to meet up and learn from one another.

Investment Info:

Single-family residence buy & hold investment in Dallas.

Purchase price: $249,000
Cash invested: $62,000

Originally purchased as my primary residence but did a remodel and turned it into a rental in 3/2021 when I purchased another primary residence.

What made you interested in investing in this type of deal?

The last time I sold my home before buying another property I looked back at it as a huge mistake. I already had a renter in it and I always looked back and wished I had kept it as a rental rather than selling it.

How did you find this deal and how did you negotiate it?

I simply converted my primary residence into a rental. Having purchased it about 7 years prior I was able to rent it and cashflow roughly $600 a month.

How did you finance this deal?

FHA loan with 3.5% down

How did you add value to the deal?

I did a remodel prior to renting it out to freshen up the entire home.

What was the outcome?

It is rented and cash flowing.

Thank you for the referral I will take a look @Joe Funari

I have a property in Dallas that I am looking to remodel and hopefully add some square footage to. Looking for recommendations for good contractors to start getting bids. I've already secured funds and would like to start work in the next month or so.