All Forum Posts by: Waylon Themer

Hey @Jordan Decuir I would be happy to sit down with you some time and tell you what banks look for.  To give you the short and sweet version commercial real estate lenders look for:

Financial Capacity of sponsorship:  Do you have the liquidity to not only put 25% or so into the project but also enough liquidity left over in case things don't go as planned--vacancy, cost overruns, unexpected cap ex?  Do you have strong enough secondary source of income to not only carry your personal obligations but also have enough earnings left over to prop up the project if needed?

Project:  What is the risk level of the project?  What class of building and neighborhood? What are the prevailing occupancy and rent rates?  What is the history of the project?  

Experience/history of sponsorship:  Have you ever taken on a similar project? Were you successful?  What is your business plan and how do you know it will work?  What is your track record as a borrower (credit score)?

That is a brief overview of what we look for.  The decision is usually made based on combination of comfort level between the three categories.  If you have no experience then you better have a lot of financial backing.  If you are buying a distressed asset or building ground up then you better have good financial backing and good experience.  So on and so forth.  

Commercial lenders underwrite two things: probability of default and amount of expected loss if default occurs then they try to balance the two to make a decision.

@Geoffrey Jones If you don't have have a good buyers list, your best avenues are either a) list on MLS with a discount agent such as @Huy N. to blast out your property to his buyers list for a fee. C) work with your manager empire industries and have them blast it out for a fee.  C) is likely the best option since their management agreement with you likely states that you have to pay them commission if the property sells during the lease.    The lower you go on price the faster it will move but you don't want to drop $15k off your price just to move it when there might be ways to move it at $115k.  I would talk to Steve Rosenberg if I were you.  I tried to link him but it wouldn't let me.

@Chris Bounds Good Thinking. Having a potential buyer stumble upon the before pictures and original purchase price wouldn't help things.  You did a great job.  Best of luck on the sale.

@Randy E.Texas is a non-disclosure state so sites like zillow have a hard time getting sold comps in Texas. The realtors associations control the comps so you need to have enough rapport with someone who has access to sold MLS comps in Houston to get the real comps.

@Geoffrey Jones I am calculating about a 8% ROI on your deal before maintenance and vacancy. Your taxes look low as the tax rate in that neigborhood is 2.77. I think you need to be around $100k to be at 10% before maintenance and vacancy. Depending on condition the house is probably worth $115k based on the comps I've seen. It just might not be worth that to an investor.

Looks great @Chris Bounds! What's the address? Is it listed on MLS?

Good Morning @Chalawndra Jones.  While I don't think hiring a property manager is necessary to being successful as a landlord,  it is something to consider as you try to work "on" your business instead of "in" your business.  I turned my properties over to management two years ago when I entered the Houston market due to my increased job demands.  I look for a manager that has good communication with both me and my tenants.  I use @Jerry Ta with PropertyCare for my management and have been pleased.  There are some other PMs in Houston with good reputations as well.   I just don't have any first hand experience with them.

Welcome @Thomas John Cloud!  There is a great network of Houston investors on BP.  Please add me to your buyers list.  I live and invest in Fort Bend.  [email protected]

Thanks 

@Jerry Ta

Tony, I would love to see go we can help.  We aren't very close to spring but we can set you up with a remote check scanner so you don't have to come here unless you have cash.  If you are needing to make cash transactions or deposit money orders or needing your tenants to make deposits for you then finding a bank closer to Spring would be to your benefit.  I have heard of Plains State and they are very small bank that makes investor loans.  I've never heard anything negative about them though I know very little about them.

You should reach out to @Tim Gross and @Adam K..  Another group I have enjoyed working with is White Picket Realty.

@Hemender Devangan I use @Jerry Ta with propertycare for my rentals in the Houston.  I have been pleased thus far.