All Forum Posts by: Account Closed

Jeremy: It depends on how sophisticated a buyer you find. MOST investors are looking for a specific % return on their investment and will use a formula to figure it out. You can use one of the analytical tools on this site and back into a value. 

The bigger crap shot is selling a tenant occupied. The last two rentals I bought had tenants already. I reviewed their pay history (it was good) along with the condition of the property as part of my due diligence. During the inspection, we found out they were burning their trash in the backyard, and we made the landlord address that before closing, including cleaning the property up.  For me, it goes back to landlord rule #1 manage the tenant not the property. 

Regarding equity, if you've got another investment paying more than the interest on the loan, I'd take out as much equity as the bank will allow, leaving you a 20-25% cushion. 

A commercial lender is probably going to give you a 7 to 10 year term with a 20 to 25 year amortization schedules. That rates will be a 1 or 2 points higher than residential mortgages. I'd look for a bank that's a portfolio lender, meaning they keep some loans in house.

Equally important is the preparing the loan package. Make sure you've got good records: 24 month of rent rolls, maintenance schedules etc. 

If you've got good credit (680+ FICO), a seasoned rental property (24 month rent rolls), and equity, the terms from a traditional commercial lender would be ideal. 

If not, there's private lenders with "cash out refi" loans for rental properties that you could use a bridge to the traditional lenders.  

Hayden: I admire your tenacity, but my first recommendation is take it slow. I've seen too many first time investors jump into a hot deal and lose everything. Read, study, listen for awhile, a long while, and then longer. Don't need to spend money on a $$$ REI guru because there's plenty of inexpensive and practical ways to learn.

For multi-family I'd suggest reading Ken McElroy's books and visit his website. 

Good luck, 

Steve

What area of the state? 

Amy: I don't of a wholesaler but Econohomes had a large inventory of Middle GA properties. I'm a private lender. Let me know if I can help. Good Luck, Steve

Check out American Associations of Private Lenders website. It should have a lender directory. 

We use Quick books from Intuit, works for 50+ properties in 7 companies. We have rentals, rehabs, and loans. 

I'm closing on a new rental property next week that has a mix of hardwoods and laminate- no carpet. I'm interested to see how it does. 

I'm certain that either one is better than perpetually playing the carpet game, that's like being the team every school wants to play for homecoming - a perennial loser.