All Forum Posts by: Brian Levredge

For those still looking to employ this strategy, make sure you actually find the lender to do the take out financing prior to getting into the deal.  Appetite for residential with a lot of commercial lenders has diminished, especially with out of state borrowers.  They view it as riskier now due to the market cycle.  I'm here in Chattanooga and have a relationship with a number of banks.  Most won't touch residential or if they do they'll do it on a 15y instead of 20y.  This is complicated by the fact most will want to know your cost basis in the property and won't want to cash you out completely, again because they view it as riskier.  I'm sure there are lenders out there who still do this, it's just getting harder to do. 

To save yourself a little more time, there are several Chattanooga real estate investing pages on facebook.   I would also go on those and join up.  Then you can ask who the wholesalers are and get info that way.  Most of what is sold tends to be single family.  There is some multi but much less frequently.  You can also try networking with Realtors who specialize in commercial or multi family.  They tend to keep the pocket listings for their best clients so you'll need to make some inroads before they just start throwing off market deals your way. 

Actually, I have another commitment same night.  Enjoy!

See you there. 

@David Grabiner is right.  Good deals tend to attract the capital.  Best place to start is close to home.  I'd venture that most of us have done that at one point or another.  There are also community banks that will finance as much as 90% of cost for purchase and rehab subject to appraisal.  Assuming you have some working capital and good credit that may be your best bet since an equity partner is going to want a bigger piece for themselves. 

Depends on what type of asset.  Houses that are well located should be in the 30% or below range.  2-4 units should be 30-37ish.  Keep in mind that property taxes are assessed by both the city and county in TN.  So anything within city limits will in effect have twice the amount of taxes.  Anything not single family residential is assessed at a 40% mil rate vs the 25% mil rate applied to single family.  

@Benjamin Bleasdale I'd be interested in discussing.  I own a PM company here in town plus I flip homes as well.  

@Ryan Paltridge happy to help answer any questions you may have about the market.  We manage mid size complexes along with a host of other assets here in town.  There's a fair amount of 20-50 unit properties and plenty of 100+ unit properties as well.  Not a lot in between though.  

@Christopher Kolasa, I'll send you a PM with a couple names.  As far as we are concerned my company manages just about all asset types.  That said we are looking to work with investors who will have more than just one property.  We can work with just one to start but want to see a commitment and plan to a small portfolio.  

I've done transactional funding in the past as well although it's been awhile since the last one.  I think the assignment of contract is probably the cleanest (cheapest) way for you to go.  It's true you can try to put both sets of closing costs onto the end buyer but it's more transaction costs and time and generally not convenient.  

I've actually bought a couple homes from @Micah Hall over the years and have never minded paying the assignment fee.  As long as the math works for me and I like the deal I don't really care how much the wholesaler makes.  The math is the math.