All Forum Posts by: Travis Sperr

What specifically are you looking to accomplosh?

@Farakh Zaman speaking specifically to the CO markets, what sticks out to me is you are making offers. I can't remember the last property I purchased that I made an offer on. You need to purchase from wholesalers or direct from owners. Our market is competitive enough being here, I couldn't imagine doing it from a distance. 

@Account Closed. Unfortunately an expensive lesson but a good one to learn. Processes allow you to run your business like a business rather than a hobby. 

@Catherine Peters types of financing are like tools, you need a full tool belt, each deal may require a different type of financing. Hard money is higher cost money but comes at higher leverage so you actually need less of your own money into the deal and you can close very quickly - but it needs to be a deal where you can add value to the property via repairs or are buying under market (off MLS). Experience not always a must.

Conventional or bank financing is pretty straight forward but capital intensive if you look to grow your portfolio quickly.

@Catherine Peters Pine Financial is a hard money lender - a good fit for the purchase and rehab money but not the end loan/refi. The short answer to your original question is - you want a direct mortgage lender - no overlays. Direct Fannie Mae lenders will have the absolute best terms/pricing for loans 1-10 - after that you will want a local bank, like FirstBank. Local banks have a little flexibility in their loans as far as loan to value and being able to over look certain items if the rest of the finances make sense - DTI, Credit, Reserves, etc. But typically the longest loan you are getting at a local bank is 15 yrs, the rate is a touch higher and closing costs are higher.

I am happy to connect you with the lender that does all of my conventional financing - shoot me a note.

@Cody Cook Happy to provide feedback on an identified area, not as willing to provide details in an already very competitive market. I will share that condos and townhomes have out performed SFR most recently.

 I would have to say you are about 7 years late for up and coming and early stages. Agreeing with @Anson Young about it being desirable for Cherry Creek schools, proximity to light rail, highway (with close access to I25) and Tech Center. There are some nice pockets in this area, there are much better cash flow areas in the metro area.

Good Luck.

@Granville L. Congrats on your achievement of buying and paying off all of those houses - that is fantastic. I couldn't help but notice that you said this is the first time you have been able to enjoy your hard work but are looking to leverage those properties to jump into commercial.

If you are looking to get lines of credit on your existing properties to fund a down payment on a commercial building a local bank is going to be your best bet in doing so - likely up to 80% LTV, all banks have different terms so you will want to find what would compliment your new loan on the commercial space.

Good Luck!

I would use the term "conventional wisdom" loosely - show me one person that has 10 free and clear rental properties and is regretting it. Much easier to see a lot of people who lost it all using conventional wisdom. Of course we want to stay in great equity positions but when I bought property with 25% equity at $100k that felt safe, having the same property now selling for $270k feels awesome - but cashing out 80% LTV on $270k to buy more properties at $270k, a lot less comfortable.

When someone says take cash out buy more - my next question to them is always "how many properties do you own?" followed by "what percentage equity does your portfolio have?" I typically find that they are not in a position to offer advice on my position. 

Of course there can be a happy medium but it is a different measure for everyone. 

Keep up the great work!

@Daniel Walker

see thread:

https://www.biggerpockets.com/forums/628/topics/433824-thoughts-on-denver-post-article-predicting-re-party-ends-in-2019?page=1#p2706256