Investor · Reno, NV · Member since 2018 · 40 posts · 11 votes
I'm an out-of-state investor starting to peak my head into some new markets and was hoping to hear some lender recommendations from the BP community. I'm interested in developing relationships with local lenders in the Jonesboro and Little Rock, AR areas. I plan to initially purchase and rehab properties under 80k with cash and a HELOC that I already have in place. I would then put the property under a more traditional 30 yr mortgage. I have excellent credit and no debts (with the exception of my primary residence) but my challenge is that my W-2 earnings are realtively low. I'm hoping to work with a local lender that understands my situation and can offer flexible or creative ways to help me achieve my investment goals. I'd love to hear any recommendations for lenders in the Jonesboro or Little Rock area that are investor friendly.
Some lenders like to see that you have experience or partner up with someone who does. Having a minimum of 30% skin in each deal is a good goal to reach for, but with less experience the higher the percentage will be needed for cash in the deal. Each real estate transaction is unique by itself. There are many different factors to consider when lending money to investors. FICO, liquidity, experience of the borrowers, the property history and potential, location of asset, demographics of area, and what the plans are for the property by the prospective new owners.
I'm new to the investment side of real estate and I'm hoping to get my first few deals in the coming months. Relative to the more experienced investors my cash available is modest and just hits 6 figures if I include my brokerage account (outside of my retirement account). I feel good about having the cash on hand to get deals done but would then like to finance most of that back out. I'm interested in scaling my portfolio so the more money I leave in each deal the less I have for getting the next one. I'm hoping to find a lender that is investor friendly and will take the deal into consideration as well.
Some lenders like to see that you have experience or partner up with someone who does. Having a minimum of 30% skin in each deal is a good goal to reach for, but with less experience the higher the percentage will be needed for cash in the deal. Each real estate transaction is unique by itself. There are many different factors to consider when lending money to investors. FICO, liquidity, experience of the borrowers, the property history and potential, location of asset, demographics of area, and what the plans are for the property by the prospective new owners.
@Roger Holden I greatly appreciate your insight. Financing seems to be the more arcane side of investing for a lot of us just starting out. I'm interested in avoiding having my first deal tie-up my capital and prevent me from getting more properties. 30% won't be a deal killer and I agree with others who say that you shouldn't over leverage especially as you are starting out. I'm just thinking longer-term and with scaling my portfolio I'd really hope for closer to 20%. I'll start looking into local lenders in that market and see how we could help each other given my specific financial situation.