Need opinions from investors with more than 4 properties.

Private Lending & Conventional Mortgage Advice
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Need opinions from investors with more than 4 properties.

Adam Black
Ridgeland, MS · Member since 2009 · 106 posts · 0 votes

Trying to see what the demand is for turn key properties that require 25% down. I might have a private lender that will lend on deals that have 25% invested and would go beyond the 10 max that FNMA has. Average deal would be $70,000 Appraisal, sell for 75% of that, so buyer would be coming to table with around $14,000. 6%-7% rate on a 30yr fixed note. Most properties rent for $725-$800 so cash flow will be high $200s after all expenses. Property management would be provided by seller with 45 days inspections of property.

This is not an advertisement, I just want to see if this kind of deal appeals to you guys. If it does, I know I can market it elsewhere. Our problem is getting lenders to buy 0 down right now so we are looking for differnet avenues.

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  • Harrison Painter
    Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    We are getting "Zero Down" deals closed.....but many folks are coming in wanting to put money down.

    There is absolutely a market for these 25% down buyers in your price points Adam, and also market for CASH buyers as well.

    I am finding it difficult to keep up with demand. Not so much due to lack of properties we could buy and rehab, but more in that I am so picky with the properties that we rehab/sell. I refuse to sacrifice quality for quantity.

    Folks can take those daisy chain REO tapes and war zone junk and stick 'em......:shoot:

    We lose a lot of buyers to others who market garbage, but I am in this for the long haul, and work hard to create clients for life! It might cost me a lot of short term money, but I enjoy sleeping well at night.

    My advice is to just keep the focus on a quality product, solid marketing, and treating people with care.........Do that and the phone will ring like crazy, regardless of how much they need to put down to qualify.

    Anything you need Adam......you know my phone number!

    Good Luck!

    P.S. Damn, I just armed my competitor!!! I need to stop doing that!!!! :lol:

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  • Adam Black
    OP
    Ridgeland, MS · Member since 2009 · 106 posts · 0 votes
    17y

    Ha, no worries, I believe there is enough for us all. We are like you in that we want to offer a quality product. Zero down is still hard to get the lenders interested in plus once you get to 4, FNAM requires 25% in the deal anyway. Plus they require 6 months PITI in addition to the 25%, another hurdle.

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  • Aron D.
    Rental Property Investor · San Diego, CA · Member since 2008 · 89 posts · 65 votes
    17y

    I just purchased my first investment property last year and was required to put 20% down in 10/08. Did things change where you can put 0 down on non-occupied?

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  • Adam Black
    OP
    Ridgeland, MS · Member since 2009 · 106 posts · 0 votes
    17y
    Originally posted by ademarco:
    I just purchased my first investment property last year and was required to put 20% down in 10/08. Did things change where you can put 0 down on non-occupied?

    No, nothing changed, Harrison and I just use a different business model where the original purchase is made using a hard money loan. Then a refi is used for the permenent lending.

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    17y

    Ademarco,

    Yes you are able to get into property with zero down. This is how I help most of my clients buy investment property. You need a hard money lender to make this happen. If you are trying to go directly to the bank you will need to put money down. You only want to put money down if it is the only option.

    Curt Davis - KAIZEN Realty538 Reviews
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