All Forum Posts by: Selina Giarla

Quote from @Ronald Rohde:

Quote from @Selina Giarla:

Quote from @Ronald Rohde:

Honestly, this is not an attrative assignment. Your buy box is huge, brokers will not cross small multi family and industrial across the state.

Purchase price is What $1m or 3m with debt? Small comissions unless you are willing to pay 10% (you should state that)

Hi there, thank you for this very valuable feedback! My purchase price is $1MM with debt. How do you recommend I pare this down to be attractive? Should I make my search area smaller (ie: northeast, southeast, northwest, southwest) as well as define just a ingle asset type to be either a multifamily search or an industrial search? I am flexible on the asset type and the location which is why I was trying to open it up and perhaps my broker would get a finders fee from a local broker if it was on the other side of the state or if the brokerage has multiple satellite offices and they work together for statewide coverage, but I can see your very valid points.

I am looking for the seller to pay the commissions.

 Increase the odds of closing a deal or increase potential commission for the work.

$1m with debt, so like $300k down? Yes, pick just one city is my advice and have two separate buy boxes. One for multifamily with more details about units, rents, sq ft, age, etc.

If you want seller to pay, then why not just search online listings? Buy side adds nothing

I can do regional I suppose. I am not quite sure which to choose from. I have an asset in Longview, east of Dallas. I prefer to diversify.

I am not sure what you mean about searching the listing. Yes I can do that, but I wanted a broker to source them for me. I have always seen brokers get paid from the sellers. 

I have a list of requirements (ie: age, minimum units, occupancy, etc.) I didn't want to post them all here because it felt unnecessary but it would dwindle down the search for sure so it's not as expensive.

Quote from @Ronald Rohde:

Honestly, this is not an attrative assignment. Your buy box is huge, brokers will not cross small multi family and industrial across the state.

Purchase price is What $1m or 3m with debt? Small comissions unless you are willing to pay 10% (you should state that)

Hi there, thank you for this very valuable feedback! My purchase price is $1MM with debt. How do you recommend I pare this down to be attractive? Should I make my search area smaller (ie: northeast, southeast, northwest, southwest) as well as define just a ingle asset type to be either a multifamily search or an industrial search? I am flexible on the asset type and the location which is why I was trying to open it up and perhaps my broker would get a finders fee from a local broker if it was on the other side of the state or if the brokerage has multiple satellite offices and they work together for statewide coverage, but I can see your very valid points.

I am looking for the seller to pay the commissions.

Commenting to bump

Commenting to bump

Hi all, I am a Boston based investor. I am looking for a reputable, large brokerage that has statewide reach and specializes in non-institutional, multi-family and industrial assets. I am looking to purchase another multi-family building or a NNN industrial warehouse in Texas, without preference to specific city. I do have some specific requirements on what I am looking for in particular, but the search results would be pretty extensive given I am open to the whole state. I prefer a broker to hand pick the assets that would meet my qualifiers than just add me to a list to get a ton of listings daily. If there are any recommendations, please let me know. My budget is $1MM with the possibility to slightly increase that but wanted to be transparent in case any brokers on here were looking for a client with a higher price point.

I want someone who has extensive experience in the multi-family asset class with an average project size of 8+ units and NNN Industrial Warehouse assets. If I am slow to respond to any direct messages or replies here, please be patient, I am traveling extensively this week. Thank you!

Hi all, I am a Boston based investor. I am looking for a reputable, large brokerage that has statewide reach and specializes in non-institutional, multi-family and industrial assets. I am looking to purchase another multi-family building or a NNN industrial warehouse in Texas, without preference to specific city. I do have some specific requirements on what I am looking for in particular, but the search results would be pretty extensive given I am open to the whole state. I prefer a broker to hand pick the assets that would meet my qualifiers than just add me to a list to get a ton of listings daily. If there are any recommendations, please let me know. My budget is $1MM with the possibility to slightly increase that but wanted to be transparent in case any brokers on here were looking for a client with a higher price point.

I want someone who has extensive experience in the multi-family asset class with an average project size of 8+ units and NNN Industrial Warehouse assets. If I am slow to respond to any direct messages or replies here, please be patient, I am traveling extensively this week. Thank you!

Quote from @Chris Seveney:

Quote from @Selina Giarla:

Quote from @Chris Seveney:

A short term rental will have slightly higher interest rate and require lower loan to value limits 

What are the most important factors for a lender for me to get the best/ lowest fixed rate?

 1. Credit Score

2. Loan to value (lower better)

3. Property financials

4. Track record

We see instituational "sizers" on how they price loans and can say they grade you by your credit score, your experience, the LTV and property financials. There are other items as well that factor in but these are the most important. If its a STR they will want to make sure you have a permit or confirm the property can operate as a STR. They have been more gunshy on STR and reduced LTV in case the area stops allowing them.

Would a better path be to obtain the loan as a second home and then rent it out at investment/STR when we aren't visiting it rather than taking out a loan specifically for STR? Especially if tbe property has no prior rental history?

Quote from @Jacob Morgenstern:

For accurate STR underwriting, you'll want tools that can provide real-time market data. Here are some solid options:

AirDNA & Rabbu – Provide estimated ADR, occupancy rates, and revenue projections (though they often underestimate actual performance—we’ve consistently outperformed their projections at Stayshores).
Pricelabs Market Dashboards – Great for dynamic pricing insights and real occupancy trends.
STR Insights – More tailored for finding the best-performing STR markets.
For underwriting, I use mypropertystats.com. They have an option where you can input daily rates if you are underwriting a short term rental.

Debt & Loan Terms

STR financing is slightly different from traditional long-term rental loans:

📌 DSCR Loans (Debt-Service Coverage Ratio) – Lenders will look at projected STR income instead of personal income to qualify. Rates are slightly higher than conventional loans, but terms vary.
📌 Conventional Investment Loans – If the property qualifies as a second home and meets occupancy requirements, you may secure a better rate.
📌 Portfolio & Commercial Loans – Good for scaling multiple STRs under one loan, though they usually require stronger financials and reserves.

Loan terms? Rates tend to be 0.5% to 1% higher than standard investment loans, and lenders may require 15-25% down. Loan lengths vary (15-30 years), and interest-only options are sometimes available for cash flow optimization.

 So helpful!! I will get looking into it all! Thank you

Quote from @Zach Edelman:

Quote from @Jacob Morgenstern:

For accurate STR underwriting, you'll want tools that can provide real-time market data. Here are some solid options:

AirDNA & Rabbu – Provide estimated ADR, occupancy rates, and revenue projections (though they often underestimate actual performance—we’ve consistently outperformed their projections at Stayshores).
Pricelabs Market Dashboards – Great for dynamic pricing insights and real occupancy trends.
STR Insights – More tailored for finding the best-performing STR markets.
For underwriting, I use mypropertystats.com. They have an option where you can input daily rates if you are underwriting a short term rental.

Debt & Loan Terms

STR financing is slightly different from traditional long-term rental loans:

📌 DSCR Loans (Debt-Service Coverage Ratio) – Lenders will look at projected STR income instead of personal income to qualify. Rates are slightly higher than conventional loans, but terms vary.
📌 Conventional Investment Loans – If the property qualifies as a second home and meets occupancy requirements, you may secure a better rate.
📌 Portfolio & Commercial Loans – Good for scaling multiple STRs under one loan, though they usually require stronger financials and reserves.

Loan terms? Rates tend to be 0.5% to 1% higher than standard investment loans, and lenders may require 15-25% down. Loan lengths vary (15-30 years), and interest-only options are sometimes available for cash flow optimization.

This is an excellent write up for DSCR loans for STRs. If you dive deeper, STR lenders that do DSCR (and do it properly) typically use any/all of the following three data points for deriving the STR rental income for the loan, and thus qualifying the transaction's DSCR:

- AirDNA

- Seller/Owner trailing twelve month booking history

- STR 1007/STR narrative analysis from appraiser

Hope this look under the hood helps!

This is great! Is there public souce to obtain STR reports?

Quote from @Chris Seveney:

A short term rental will have slightly higher interest rate and require lower loan to value limits 

What are the most important factors for a lender for me to get the best/ lowest fixed rate?