All Forum Posts by: Wyatt Franta

Aharon,

You will want to consult with a commercial mortgage broker. They will source the best loans for you, and their loan origination fee of 1% can be rolled into your loan or paid upfront.

Down payment can be sourced from personal funds, family, friends, etc. Lenders don't really care where the money comes from any longer as long as it's there.

You can also look into seller-financing but that's putting the carriage in front of the horse at the moment.

Best of luck.

Hi Nicole,

LVP is the most well-rounded material on a cost-effective basis. There are seemingly endless brands that likely all use the same white-label supplier. If you're going to hire a contractor, consult them for a recommendation. If not, head into a Lowe's/Home Depot and do the same.

Good luck

Daniela,

Housing market 'crashes' are cyclical. Every single online news article is biased and solely to drive consumer traffic. Doom & gloom sells more than sex. Stop reading them.

When the market inevitably crashes/corrects/resets - nothing happens. You should have a fixed-rate loan, and your payments/obligations remain the same. You only lose/make money when you sell. You could lose 99% of your home's estimated value overnight and more likely than not, nothing would happen. 

Local property tax increases depend upon your state. Most states have an annual % increase cap. Check with yours.

Corey,

Love the idea - I'm looking at the possibility myself. As @Mason Hickman mentioned, they're glorified, trendy trailers in the eyes of a lender. You won't be able to finance them with a mortgage. You can look into builder loans, bank loans, or even RV loans if it meets the requirements.

Land will require 20% down on a 20-25 year loan. Permitting can take forever depending upon your area, material/appliance costs & availability have been fluctuating, and you'll likely need some good protection depending upon where you decide to build.

Great news is that it's still pretty affordable and looks like a great alternative to a standard home. AirBnB will probably eat up your TH when it's back into full swing as well. 

Alice,

You will need to get creative with current ownership. If you don't qualify for a loan and don't have close relatives to provide you with capital, your most likely option would be to sit down with the other side and figure something out.

Explain why you don't qualify due to self-employment and discuss some ideas. For example - "Buyer & Seller agree to a 10% down payment to be paid in full by 01/31/2022". You'll be able to close on the property early, and Seller will get his money by an agreed-upon date. Real estate is the wild wild west, you can negotiate anything with a motivated enough party.

Good luck. 

Nathan,

You will need to contact a real estate broker or attorney for this. You don't want to be learning or replicating a legally binding document on the fly. The last thing you want is to forget to include something, and it's already too late. 

Best of luck.

Hi Cory,

I'm out of state, so my advice may not apply to NJ common practices.

• When subletting space to another tenant, most LL's expect the sub-lessee to assume the remainder of the original lease agreement. If the sub-lessee disappears the next day, the original tenant is still responsible for rental payments, as written in most standard lease agreements.
• You can write a new lease agreement with the sub-lessee for 18 months if they agree to it, this would relieve the original tenant from any responsibility once the new lease is signed.
• Most rentals come with an early termination clause. Generally, it ranges from 1.5x to 2x monthly rent. Enforce the clause and deduct $500 from the total to offset new tenant HOA costs. If this isn't enforceable, request the current tenant pays this cost. If they refuse, eat the $500 and count it as an educational expense.

Best of luck.

Sam,

If you are concerned that you will not have time to manage a STR, get a CPM. 8-10% of one property's rents (considering it still CF's or breaks-even in a 3-5% appreciating market) in exchange for not worrying about late night emergency maintenance calls or spontaneous bad news calls is worth it.

Vet the PM and focus your time on increasing revenues elsewhere.

Hi David,

Similar to what @Sam Smith said in regards to the fear of high origination fees. Ask around, call your local banks and get competitive bids. 

As the other commentators have mentioned, you and your lender are going to need ample time to simultaneously review each transaction carefully. I would recommend a minimum of 60-Day Due Diligence and 90-day Financing after receipt of books & records. Coordinating inspectors to pull reports across 5 different properties can take some time depending on the market. Additionally, we all know how slow appraisers can be...Give your lender a comfortable window.

Best of luck.

Hi Pragya,

Construction prices in Portland/Vancouver will be very similar. As Steve mentioned, land cost will vary the most. Vancouver is generally more affordable, and we haven't banned drive-thru construction like Portland, which opens you up to more tenant variety. 

On land acquisition - Our office has quite a lot of listings in various zonings. DM over a criteria and I'll connect with you with whatever we have in-house. Also, if you have land you'd be willing to build-to-suit or ground lease on in Vancouver, let me know! I have several Regional / National tenants looking.

Thanks!