All Forum Posts by: AJ Exner

Then I am aware of two that could do something like that, sending a DM.

Thanks,

The ones that I am aware of are pretty picky on region (which Philly should be good) and the minimum loan/property value. What is the 'as is' value, payoff (if any), and amount you are hoping to get?

Hey Jenny,

Dallas, and TX as a whole is a unique area when it comes to LTRs. Specifically, the property taxes can make things kind of tricky when it comes to the overall cash flow. 

You need to look in areas where you can charge a good amount in rent, but where the property values haven't sky rocketed. It is a little more difficult in and around Dallas and I would recommend spending more time analyzing the finances on it before you jump into a deal, but it is very doable.

Good luck!

Hey @Felicia Walker,

Yes, the "what have you done for me lately" can be frustrating when you know what you are capable of. 

Do you happen to have any additional licensure? RE or GC? Sometimes, lenders will count that for additional "experience points" and would give you some additional leverage.

As well, there are other lenders who have look back periods at either 3 years or even 5 years, so there might be some flexibility in that as well.

Good luck, happy to help where I can if you need any.

Thank you,

Ditto what @Greg Parker said, great range for AL, especially bigger areas like Birmingham, just be wary of getting too rural.

GA will be applicable in most areas except for around Atlanta (very competitive right now) but if you can work up to the Carolinas, I would highly recommend. Some great opportunities up there, but a slightly higher barrier to entry.

Hey @Marcia Lynn Zigler,

From what I've experienced with my clients doing this, is timing everything to hopefully close at around the same time and mitigating fees/costs.

For the timing aspect, between application, appraisal, underwriting, and everything else, there are just a lot of moving parts to time up. I have found it helpful to (if possible) keep it with one lender and even within that lender, using the same processor/underwriter to keep things running smoothly. Even within a single lender, if it has different eyes on similar properties, one might find issue with something that delays the process while the other doesn't. So if you keep it within one group/entity/person, then if you clear an issue with one, you do with all.

Then it becomes about the $$$. Most lenders that I know will give 'multipack' discounts, so I would ask about that going into it. I think its worth keeping them as separate assets compared to a portfolio to keep flexibility in future transactions, but in doing so it will have different costs associated. 

I would also make sure that the minimum qualifications of the lender is met by each property. I've had times where we've ran 4-5+ properties at once, and inevitably one or two doesn't meet the minimum property value or loan amount and we have to pivot lenders or ask for an exception, which doesn't always happen.

Hope that helps, and good luck! Happy to help where I can.

Hey Jemma,

So there are some decent portfolio DSCR options, but I always feel like your best bet is keeping them as 3 single asset properties. Often your rate/leverage will be better, but it will also give you the flexibility later in case you may need it.

As for the 'rural' designation, it really depends on the appraisal. If the appraiser calls it suburban, then that is what they go by. But if they call it rural, you'll have to look for an exception. I always go by either the 'WalMart check' (if there is a Walmart in the town), or the USDA has a map that they utilize that is pretty solid (https://www.fns.usda.gov/sfsp/rural-designation).

Hope that helps!

Hey Mat,

Great thought in going at it with a team. Especially if you funnel through some kind of an entity, that should provide plenty of flexibility as you begin to grow.

I know a number of my clients have found a lot of success in and around Memphis currently. Are you looking to implement more of a BRRRR strategy or just buy and hold to start?

Makes sense, building a team is an important aspect so its good to start looking now.

You might run into some hurdles in NJ as a whole as the lending policies are a little tricky, but with the right lender it can be a good opportunity. I would recommend looking for 2-4 unit properties, as they are a great way to overcome the higher rates by a slightly increased cash flow because of the unit count. 

Good luck!

I second @Account Closed on this one, I feel like nothing kills a deal with a potential cash-flowing condo then a brutal HOA/Condo Association. Read through it and make sure it is an area that will truly appreciate with you rather than fight you the whole way.