All Forum Posts by: Shane Kluiter

I haven't heard of a significant market collapse anywhere.

I just had a client in FL get about 20% more on a refinance appraisal than they expected.

Maybe some small market are going down but overall we are seeing things stabilize if anything.

Rates went down recently for us and many other lenders which also supported values remaining where they are.

I guess the better question is, why don't you want a credit check?
That information will help to give a better information. 

Our Brokerage works with Backflip. They have competitive programs. I you'd like can give you an overview of the funding landscape in non-QM.

85% LTV is possible in the right situation. Most of the time properties don't DSCR with only 15% down.
You could do a bridge for 24 months. Then you'd be in the interest only payments with a balloon, which you are trying to avoid. But it would give you time to save up for the 20% on a refinance in 2 years or give you the ability to use any equity gained to refinance in 2 years.

 A lot of my clients will do their first 2-3 flips as ones they sell off to have a healthy grasp on projects and a large pool of cash to work with. Then start doing 2 at a time, then snow ball to 3, 4, etc as they scale. Then start keeping every other property for multifamily rentals.

Just getting started with flips it's best to focus on the "paint on a pig" scenarios. A few investors I've worked with have gone for projects that are huge to start with because the project looks extremely profitable and then suddenly they are overrunning the project costs. It's always best to start with simpler deals and scale into larger scale rehabs. Get some deals under your belt, grow experience, and then go for bigger rehabs.

These are very different projects. 
What your working on is considered a "mixed use" property. Rates are higher, requirements for down payment are higher.
If 50%+ of the sqft of the property is for the apartments then it should be easier to fund. 
Occasionally, if the deal isn't as good lenders will require you to fund the rehab out of pocket.
The problem you'll likely face is getting renters in the storefronts. Do you have any connections with companies that want to rent them? Depending on the state of those facilities it could make sense to secure a renter before renovating so that you build the area out for the long term renter. Some long term renters will renovate a space for their needs as well.

Your first new build will be hard to qualify for. If you've done some repair work that would help. I generally recommend my clients work with a builder who has done 5 or more new builds on their first deal. Even if they just have them on as an advisory role, having them on the LLC helps you get a better deal on funding and their experience will help you to get the project completed more quickly. You'll give up some project but the value in that first deal is what you learn.
Sometimes you can meet builders at local real estate meet ups

That's a great BRRR property. The Philly market is pretty good for these kinds of renovations.

If the work is done and it's not selling you could hit up KCMO facebook groups and ask if any investors are looking to buy. You should get flooded with investors making offers.
If it's already rented you could DSCR it and make that money back over time. Or hold it until rates dip a bit and then sell it when lowered rates cause the market to rise again.
Hard to tell without an address but my clients working in KCMO haven't had a problem selling properties. How far off are you in value?