All Forum Posts by: Snehann Kapnadak

Hi All,

How do you present a deal to an investor with the goal of being compensated for it when it closes via an Acquisition Fee? If I find a deal, but don't have capital to bring in and instead work on underwriting, due diligence, and seller/broker relationships, and present it to an experienced investor who closes on it, at what point should I ask for an acquisition fee? I feel a little odd asking, although I know that I should be compensated for my efforts and for finding the deal in the first place. 

What are the logistics of making sure I get the fee? Do I need a to get a contract written up that states what the fee will be? Do I do that from the beginning or should I wait until we get the deal under contract? My fear is that I'll do a lot of sweat equity on the acquisition and the investor will take the deal and close it by themselves and cut me out (this has happened to me to some extent once before).

Any insights would be greatly appreciated. Thanks in advance!

@David M. Ah okay, I get you now. Thanks for the tip!

@David M. True, although I think I'd still need an IF-Then, to pull the exact value of the penalty depending on the year of disposition.

Got it, thanks @Jaysen Medhurst.

@Joaquin Camarasa @Sudhanshu Singha @Sean McCluskey @Chris Harold Thanks a lot for the clarification and insights. I spoke to a few lenders and they confirmed that I would need to show some sort of income for the loan, whether that's from a roommate who has a steady job and who's willing to sign off on the loan or a cosigner. Asset-based lending is no longer a viable option, unless you have an extremely high net worth AND assets that provide a significant income.

@Solomon Morris Thanks for the well wishes!

@David M. Thanks for the tip. Agreed that the IF-Then would get messy. I did something similar to what you said but just for Stepdown, not YM. See here, maybe you'll find it useful too.

@Ryan Hogan This is exactly what I was looking for, thanks so much! Now I just need to speak to a few lenders and also find a way to be able to pull the 10-year treasury yield into my sheet. For Stepdown, see my note above to David. I built it out as a table on the side, but I'm sure you can condense it into an IF-THEN Statement if you'd like.

@James Storey Got it, thanks a lot for the detailed explanation. I had to read it a few times to fully understand the dynamic between YM and Treasury rates, but I think I get it now. If/when you end up writing that article, I'll definitely be one of your first readers. Thanks again

@Joaquin Camarasa Thanks for the response and the well wishes! Would a part-time job qualify? What about the rental income from the SFH I get? I'm wondering if there's a creative way I could qualify for the loan.

@Derrick Dill Ah okay, so it's more about the cash flow vs. the assets on hand. Thanks for the response!

Hi All,

Hope you're staying safe! Hoping someone could impart some advice for my situation:

I was recently laid off from my real estate tech job due to the pandemic. I'll be starting a full-time MBA program in Washington DC for the next two years and will be moving down from the NY/NJ area over the summer (~August, but TBD). I'd love to househack in the market, but I know it's super expensive (unless I want to live on the east side of DC, which is not feasible unfortunately because of the logistics of going to and from school). If it helps, I have excellent credit, had W2 jobs for the past 2 years, and I also have 1 out of state SFH with about 10K equity.

My question is: How can I qualify for an owner-occupant home (either FHA or 1st Time Homebuyer program through Fannie/Freddie) when I'm unemployed and will be a student? Would I be able to leverage my rental for the loan?

I'm speaking to a few local lenders this week but also wanted to see what the BP community thought. Thank you in advance for your advice/recommendations.

@Jaysen Medhurst Thanks a lot for your reply! So is the penalty assessed for either a ReFi or a Sale under the loan term? Ex. If I  have a 5 year term loan, ReFi in Year 3 and Sell in Year 4, will my total penalty be for the Year 3 ReFi + Year 4 Sale?

 Basically I'm trying to model out the prepayment costs a the time of ReFI and Sale with an IF-THEN statement. I'll have the ReFi loan amount. So IF the prepayment penalty is based on Stepdown, then the Total Prepayment Penalty = the Loan Amount x the [5%-4%-3%-2%-1%] of the year I ReFi? So 5% if I ReFi in Year 1, 4% in Year 2, etc.

Do I have that correct? I know it's hard to visualize on this forum. I appreciate the help.