All Forum Posts by: Jonathan Taylor Smith

@Bobby Andrews - Unfortunately, the battle of getting multiple units properly valued on an otherwise single-family lot is always best fought BEFORE the appraisal takes place. I recently converted a detached garage to a separate dwelling (ADU) that had its own permit and CO, and took action going in to make sure that it got considered both separately and in addition to the main house on the same lot. I even got it designated as a separate address from the main house to aid in this handling. Does yours at least have an A / B unit designation? And was the potential combined rental income of both units considered in the income approach on the appraisal or just the main unit?

Hello @Chinedu Okonkwo - Welcome to BP! Never played Pickleball, but love playing Racquetball at Lakewood YMCA in Durham. Do you have any rentals already, or just getting started?

@Robel Nessro - Sounds like a good opportunity for YOU to start an Investor Meetup that is local to your area versus 20 miles away. And being the organizer of the group will give you some credibility going in as a person who gets things done.

@Donnie N. - YES, I had a similar situation occur for Wake County Housing Authority in North Carolina last year - not paying for 3 months... It turns out that they had run out of funding. They resumed paying as of the new year.

@Drew Mullin - Surprisingly they seem to find ME more often than not. But I find them at local meetups and from Google searches of terms like "We/I Buy Houses" and the city name. I also call the numbers on every such sign I see on the side of the road to get on their buyer's list.

@Jason Harrelll - I've bought directly from owners on multiple occasions using seller financing, subject-too and lease-options. And as a licensed Realtor, when speaking with owners, I can also offer to list the property for them if my off-market offer price / terms does not work.

@Drew Mullin - My experience is that the vast majority or NEW(er) wholesalers rarely bring decent deals and then quickly disappear. And those who are established have no shortage or investors seeking to buy their deals when the numbers work. So my goal has been to get the real-deal wholesalers to vet ME. I want them to know that I'm a proven buyer and work with client's who are proven buyers able to close - in hopes that maybe they call me FIRST!

@Erik Roth - Your point on a lender justifiably wanting the borrower to have decent credit and some skin-in-the-game is valid - and nothing in my comment suggested otherwise. But to the original question in this post, having to come up with those funds often becomes the biggest challenge to deal flow.

Just yesterday, I came across a property that I could have gotten for less than $200K, put another $200K into it, and easily would have made it worth over $600K... But while I was doing the lender dance to see who would fund it and under what terms, it went under contract with another buyer.

So to solve this often repeating problem, I'm seeking a lender who will give me a $500K to $1M HELOC in second position against the millions of dollars of equity across my portfolio - as I do not want to disturb my 3% and 4% first position mortgages. Being willing to sign a personal guarantee and having a ton of equity to leverage would seem to be sufficient S-I-T-G to me, but cannot find any lenders offering HELOC's on investment properties.

And as for 100/100 financing... I think track record speaks to the lender's security more than anything else. If you have proof in credit, net worth, prior completed projects and the current deal pencils-out - 100% financing should be easily available to help such proven investors obtain higher deal flow.

@Michael Gonzales - This "buyer" is telling you their own opinion of how likely they are to be able to actually close by the size of their deposit offered. Require a deposit that at minimum matches your monthly holding cost for the property and make it payable directly to YOU (not escrow). If they are unwilling to put up some real money - they are telling you all that you need to know - so then relist it!

Hi @Raj Hashmi - Are you looking in a specific area? Are you considering out-of-state - such as North Carolina?