All Forum Posts by: Angel G.

There's some solid advice that has been given thus far! It's equally as important to make sure that you have your criteria and team ready to go for when you actually do make a "connection" with a hard money lender. It's been my experience in my first conversations with hard money lenders, the more I knew about what I needed and wanted to achieve along with the resources (contractor) that I had to do so made a world of difference. 

Take the time that you have while waiting for a response back from the hard money lenders to have as much information on what you want to achieve as possible. Like others have said - keep reaching out. Since it's the holidays there may be a delay from some, but keep at it! 

Best of luck!

Let's go @Brian Pownall - I'm currently an out of state investor targeting multifamily properties and in the acquisition process. I'd be more than happy to contribute and share what I've developed / learned along the way. Count me in!

I agree! This makes things so much easier when you have a property manager that has a set schedule of depositing funds and a site that you can login to and check numbers on your property whenever you want!  

Hi @Gabriel Almendariz - I asked the very same question you did almost a year or so ago before taking the leap into my first true out of state investment. Although I'm sure this has already been mentioned, I would focus on getting my "team" ready to go to make the process just that much smoother for you. The following was the order of effort that I took to line this team up:

1. Lender - I wanted to make sure I had the money lined up and ready to go to start making offers. 
2. Property Manager - (disregard if self managing)
3. Realtor - let's start making some offers!
4. Contractor - I had plenty of time to vet while making offers on properties.

Best of luck!  

@Chad Vineyard - It's been my experience, throughout several different states, that the more often quoted percentage is a 10% fee. I concur with Soh and yes shop around, ask around, interview your managers. 

Hi @Logan Mccleve I recently enlisted the support of @Doug McVinua to manage my property in Queen Creek and he's awesome! I actually found him through Bigger Pockets. I'm active duty Army and we needed to quickly rent out the home we were living in due to a PCS (Permanent Change of Station) and he listed the property and had it rented out quickly. 

One question that I have for you is what is your investment criteria (i.e. minimum cashflow per door, minimum CoC ROI,etc..) Assuming that you've factored in all expenses into the equation and you're coming out with a 16.24% CoC ROI is not bad at all; and that's doing the numbers at asking price!

Hi Steven,

Great job on the details above! It shows that you're putting in the work to setup a solid underwriting process. One thing I will add is to ensure you determine what your criteria is for the type of Single Family Home you're investing in. Most of the time, in my experiences, the tenant will cover all utilities associated with that property to include lawn care. When approaching my analysis with that criteria in mind, I use Mortgage, Property Tax, Insurance, Vacancy, Maintenance, CAPEX, HOA Fees (if applicable) and Property management which averages between 6-10%.

Depending on the age of the home determines how much % I save for maintenance and CAPEX. With older homes, I'm going more conservative and saving more for both of those areas.

I do like how you broke out the CAPEX - thanks for sharing that!

Hi Landon! Congrats to you and thank you for your service. Although my initial response is absolutely it is realistic to have both a VA Loan for your primary residence and take out a conventional loan for your investment property, especially since you're putting down 20%. Your lender, through the underwriting process, will just make sure that your DTI and finances are in order to determine whether they will approve your conventional loan.

Best of luck!

@Yaamu Camara First off congrats! Everything that you're feeling & thinking is perfectly normal and many if not all of us have gone through it. You're getting quite a bit of great advice here. One thing that worked for me was to have a bank that had an actual brick & mortar (branch) presence in the locations where I invest. There were a few times when traveling out to my sites that I was able to walk in and take care of a few things with convenience!