All Forum Posts by: Darryl Dahlen

Canadians represent the largest segment of foreign nationals buying investment property in the states.

We received two requests from Canadians looking to buy property last week so they're out there.

Agreed. You didn't mention the loan amount, but unless you're applying for one of the government backed multi-family loans the lender is more than likely going want you to personally guarantee the loan.

As Financeexaminer explained, the lender needs to ensure that your guarantee is worth something in case the property runs into debt service issues. As such, they'll look at your experience and financials as part of the risk analysis.

Let us know what the bank offers you for terms. I'm always curious as to what other lenders are offering.

I agree that having the financial muscle to take the property down AND complete can make all the difference.

Just a thought, but would it make sense to ask the bank to carry some paper on the deal? If it strengthens your position to retain some of purchase price in reserve, but can show the bank you can carry the debt and fund rehab component it may make sense for you two to strike a deal where they hold a note for some portion of the purchase price.

Kevin- I think that's exactly what is going on with the bank my friend works at.

This is getting a little off topic, but Joel brings up an interesting point. I see some banks willing to take enormous hits on an asset just to get rid of it. More than likely, they have already written it off and are simply looking to dump the property in an effort to recoup some money and save on the costs of carrying the property.

Then there is the other side of the coin. I have a friend who was just hired on at a bank in FL to help them deal with their toxic assets. I thought I'd be able to cherry pick through the properties for some of my buyers, but as it turns, out, this bank is being restricted with regards to the discounts they can offer.

My feeling (she won't discuss what the reason is for confidentiality purposes) is that the FDIC has got them under the microscope. I don't think they're doing well so I suspect the FDIC is looking at them to determine if they need to step in and take over.

I would think selling off a bank-owned asset in order to capture those funds would boost the bank's overall well being. Especially, if that bank is on the smaller side, but for some reason, it is frowned upon.

Anyway, it's interesting to see how much banks can differ when it comes to getting rid of a bad loan.

This deal has a lot of components to it. After a quick read, I think this might have some potential IF you can carve out some of the components.

Personally, I wouldn't care about the excess land. Not where there is 17 acres of it. As Joel stated, construction money is scarce these days. Unless you can obtain LIHTC and/or can obtain a HUD 221(d)4 loan, funding the construction of the remaining units could be a real challenge. You might be better of carving out the land and selling it off. Is that possible?

Same thing goes for the storage units. It is now easier to obtain an SBA loan for self-storage businesses so these properties are now easier to market. Of course, since this property is incomplete it is going to present a challenge for anyone in need of funds, but it'll be easier for a seasoned owner of this property type to obtain the financing needed then it will be for you to (I'm going out on a limb here by assuming you aren't an experienced SS owner). Especially, if the buyer owns other income producing properties that can cover the debt.

Anytime a lender is motivated to sell a property it opens the door for creative solutions. The property may be a good deal, but not for one buyer. Not unless you're very liquid. For me, there's too much risk based on the amount of vacant land and another unfinished property. Obtaining the funds to bring the entire property up to its potential is likely to be prohibitive for one entity to handle.

If you can break the property up you can not only capture revenue from the sale of those properties, but you also don't have to worry about the headache of trying to obtain the funds to build/complete them.

Just an idea.

While BP has no shortage of valuable posters, Jon's posting style is one I thoroughly enjoy.

He has a way of imparting his knowledge, insight, and analytical skills in such a way that makes sense and is easy to understand. That can be hard to do when using an online medium such as a forum.

Thank you for your all you have taught me and for spending all of the time and energy you put into this site to help make it what it is and what it will be!

Good thought, but Fannie's DUS program might be a better fit. Similar terms through a cheaper loan to obtain.

In the lending world there are names that always rise to the top where the entity is basically an LOI factory who charges large upfront fees.

This is a one of those groups. They used to be Remington Financial Group, and while they have an excuse as to reason for the name change, I believe it was to escape the old name and start anew.

A Google search will give you plenty of reading material as to lawsuits and complaints from jaded borrowers. They tried to mask that by filling the net with press releases and simple websites/content, but with this FBI raid there is no escaping the truth.

I've seen LOIs from RFG/RC issued on projects that little to no hope of funding where the upfront fees were substantial.

No experienced or reputable broker would ever send a loan to Remington or BlueStone.

You feed on unexperienced brokers and desperate borrowers and only serve to make my job harder as an honest broker. I can't even count how many time over the years I've worked with clients who've spent thousands with your firm only to be turned down when they never should have been engaged to begin with.

People used to make up false deals just to see if you would issues an LOI and almost without fail you would. Pathetic.

I'm glad the FBI and SEC are finally going after folks like you. The day you go out of business won't come soon enough.

In that case, sign me up!

We need an internet detective award.