All Forum Posts by: Will Pritchett

@Callum Lewis I have another company I use if you decide to get a second quote. PM me for the contact Info if you’d like. They’ve done three jobs for me. One was major. They have all held up so far. I haven’t done one on a flip so I can’t attest to the buyer’s reaction or the affect on price. Ours have all been on rental properties.

I agree that they are very common in San Antonio. I have heard that the warranties are generally written with a lot of “outs” for the companies. I haven’t had to test my warranties yet.

Best of luck!

@Jose D., I think that's a great plan to get your foot in the door.  I believe Lackland has a graduation every week of the year and a lot of families want to come see the ceremony.  Seems like a good area to find affordable houses that may still work for Air BnB.  

Side note: Some friends in San Antonio recently shared a story of a guest who let water overflow from a toilet and ruined the flooring.  Air BnB reimbursed them for the entire amount of damages.  I thought that was pretty cool to know.  

Best of luck,

Will

Thanks for sharing the article.  Good stuff.  

I was told that the number of properties was the issue; even if they are on one loan.  Would you say that is incorrect?  If five are on one personally guaranteed "blanket" or portfolio loan, is that the same as five different commercial loans on five properties?  Just sorting through my options here.  

Also, is there any way for my wife to get financed even thought she takes very little salary from the business and only has begun to take salary recently (4 months)?  Would existing properties help her qualify? I'm doubting it as most have so much depreciation and write-offs that they look pretty low profit (generally a great problem to have).

All of you have offered a ton of great advice thus far.

Thank you,

Will

@Peter Williams I would suggest the book by BP called How To Invest in Real Estate by Joshua Dorkin and Brandon Turner.  Also, The Millionaire Real Estate Investor (careful because there's also one for agents - I hear it's also good but can't vouch for it) by Gary Keller and Jay Papasan.  Those as well as consuming podcasts in great number and reading forum posts, you should be up to speed on the vocabulary quickly.  I hope this helps you speed up your learning.

Best of luck, 

Will

@Brad Polvorosa thank you, sir. This forum has helped me immensely grow my business and I hate to see it deter a newer investor. I appreciate your comment. There are so many ways to be successful in this business.

Hello BP,

So my situation is that we have grown a rental portfolio and are fairly far past our ten conventional loan limit. Not thinking we'd move, we used all of them. Now we may decide to move. My question is, what kind of loans do Fannie and Freddy count against you? I have some to my LLC that are personally guaranteed. Some are private seller carry to my LLC.

My lender says there is no way around this. While complying with all laws, I have to believe there is. I have found lenders who will do a loan to my LLC non-recourse that I can't see them holding against me (if I were to refinance some conventional loans)?? What I am envisioning is refinancing a few of the conventional loans to get the number in my name below ten. But I don't want to do that if they are going to disqualify me on grounds of the other loans to my LLC (some with personal guarantee). Worst case scenario may be just getting a loan from a small bank and not going conventional for a new house. All of the rates I would refinance to are quite a bit higher so I may be better off just taking a higher rate on the house by going to a small bank? To sum it up, what loans do conventional underwriters count against me? Personal guaranteed loans (even to LLC)? Loans to me personally? Private loans too LLC? Only those reported to credit bureau? Just thought I'd ask the collective genius that is present here if you had any suggestions.

    Thanks in advance.  I searched the topic and couldn't find this answer although I'm sure it's been asked before.

-Will

@Alexandra Rubow I just got here and evidently this is a hot button issue for some people. You probably posted this without knowing that you can search for topics and questions that have been asked before. But it’s not a problem. No one is inconvenienced by your question. Probably every one here has asked something that has been asked before.

While I am not a STR guru, I do have long-term rentals and I would consider allowing a STR sub-lease for a premium on rent or larger deposit. The way I see it, subleasing is a risk and risk can be mitigated in these ways. I would check with my insurance agent to make sure my coverage would protect me as this is a different property use. If I needed different coverages, I would pass the fees along to the STR operator. I've even heard that STRs can be returned to the landlord in better shape than long term rentals due to frequent cleaning and the guests generally taking care of things so that they will be rated highly.

Ultimately, I think befriending investors may helo too. I have a friend who is very sharp and learning. I want him to succeed so I would consider something like this if he presented a thoughtful plan.

Stick around here if you want to learn. I also suggest filling out your profile so that people know something about you. Best of luck!

@Bettie Campbell Are you looking for short-term funding for a flip?  Or a long-term mortgage?

@Bob Veitch a friend of mine took videos for me and helped me with my social media material. He knew I struggled with that. Now we talk regularly. He’s not afraid to work. If he brought me a deal, I’d definitely partner with him. Maybe take that approach? Build a relationship based on bringing them value first. And then bring a deal? Best of luck!