All Forum Posts by: Vee K.

@Andy Hughes , I just found this on BP. Hopefully this would help you out.

http://www.biggerpockets.com/rei/pay-rent-online-payment-tools/

@Lee S. 

Each HML has a different criteria, you will have to find out for yourself. My first HML didn't even care to qualify us. We were able to close in 3 days from the day we contacted him. He was comfortable to loan money to us because we were putting up the fix up money.

The second one trusted us because of his equity position. He gave us 20% of the ARV secure by a 1st lien. It was safe for him so he didn't really care to qualify us either.

Most HML look at the deal more than you. Although they will want to make sure you could pay, they rarely care about your credit. I even had one HML told me that he doesn't care if someone just walk out of a chapter 7. As long as you fit the other requirements.

@Mark Neiger

1. Deals on Loopnet if negotiated properly, still could be good deals. If you want any broker to send you deals, you will have to develop that relationship first. They will want to know that if they gave you their pocket listing, you will be able to close or at lease your ability to close is high.

2. You will be able to find out a ballpark cap rate figure from IRR's website (get their reports). Then from there, you need to talk to brokers, financiers and property managers in a specific market in order to find out about the cap rate there. 

3. The financing part of MF is tricky. In my opinion, as long as you have a good DSCR (In my mind 1.25+), I don't care if I have to give up 30% of the business or pay 10% to a hard money lender.

At the end of the day, you still need to be able to pay the bills. So when you are repositioning a property, if the cash flow makes sense for you to go solo and borrow from a HML, then you should consider it.

4. Overpaying for a property works only when the owner is willing to finance 100% of the deal. The moment that you get banks involve, the deal is dead. So for that deal you are looking at, you can overpay for it, as long as the term works for you and fit your underwriting guidelines. Never bend your guidelines for a deal!

Hopefully that helps you out a bit. These are just my personal opinion from my owne experience. Doesn't mean they are correct.

Vince K.

@Michaela G. 

If they are month-to-month, maybe you can give both of them a 30 days notice to end the lease. When the 30 day period is up, you can sign a new lease with her. Does that work?

@Mike Thomas : Welcome to BP. The community here is pretty active. If you had any questions, feel free to reach out.

@Christina R. : You're welcome. Sharing experience is the best part about Bigger Pockets. Good luck with your deal.

@Andrew Katzman : Do you or someone in your group manage multi-family units? 

@Geo K. : Thanks for the recommendation.

@Christina R. : Yes, as a wholesaler you do have to. But when people are willing to do owner carry, then I don't really care what they ask for. If I could get my term, I'm going for it. 

Even if they want a ridiculous amount like $1M for a $325K house. I'll do the deal if they give me a 100 year term loan lol. 

@Christina R. : From your example of the price seller wants is $380K for an present ARV of $325K, you can do the deal.

Yes, you could offer an all principal loan for maybe 15 years at certain payment amount each year. Then at the end of the 15 years, you pay a balloon payment. 

The downside to this is that you cannot sell it for a long time. So you may have to rent it for a long period of time before you can sell it.

The upside is that you are paying the loan down very fast. Let's say you pay down $12K a year, in 10 years you've paid down $120K from the purchase price. If you went the full 15 years, then you have a balloon of $200K. And 15 years down the road your house should worth a lot more than $325K that you estimated.

Does it make sense?

VK

@Oscar Riojas : I'm not sure if there is a a for you to know for sure whether a wholesaler is credible or not. But there are some characteristics that you can look for.

• Multiple investors in your market vouch for this person
• When you run comps, your numbers and their numbers are in the same range
• Their fix up cost estimate and yours are in line

Even after you found a credible wholesaler, you still have to verify everything yourself (ie: Fix up cost, DOM, comps, etc.) Don't just trust someone because they are credible.

Best of luck,

VK