All Forum Posts by: Brad Smith

Hi Daniel--

When I analyze a deal, I rank the potential to lend/financing terms in the following order:

1. The deal itself: Location, purchase price to repair ratio, loan to ARV and estimated net profit after sale. If it's not a deal that I could personally get excited about, I'll probably pass.

2. Credit:  While a high 600 (or higher) credit score is preferable, we can work with lower scores (even under 600) if the deal makes sense.

3. Experience:  Yes, having a number of verifiable flips is the best way to get the lowest rate and highest LTARV, I work with an great number of "first timers" who routinely have 90% of their projects financed based on sound projects and good credit.

4. Assets: While last in importance, great numbers on the previous three will be irrelevant if you don't have at least some assets of your own to invest in your project.  For my Clients, the conversation begins at $15,000 which must cover down-payment, closing and reserves.

Hope this helps and best of luck moving forward!

FHA Approve Eligible can go as high as 46.99% front ratio and 56.99% back ratio. BOTH of these ratios must work to get an approval and usually a credit score of at least 640 is needed to scrape the top of these ratios.

There are many people across the country making solid income by the use of Rental Arbitrage.  Contrary to most people's perception, AirBnB rentals are better cared for than long-term rentals.  The reasons being: 1) rental is professionally cleaned after each use of usually 2-5 days; 2) both Host and Guest are given Yelp-type ratings that everyone sees.  If you're a bad guest no one will want to rent to you; 3) as the Lessee, you can provide extra Renter's Insurance to give the Owner added peace of mind.

This trick is convincing the Landlord of all this.  As time goes on, more and more Landlords/Owners are getting hip to this model and will be more likely to give you a Lease, especially if you have some Real Estate experience and present yourself in a professional manner.  You will also likely have to offer the Owner above-market rate as added incentive.

Also, sites like AirDNA can give you an idea which markets are good for the model.  Moderately populated college towns are usually a good fit.

Hello.  My Client is an established Builder with excellent credit and strong assets. Currently, he has a 5 Residential Lot project in need of engineering completion.  He's looking to pay of existing bank lien of 140K and add an additional 100K to finish the engineering phase.  Improved value to be 500K (current tax assessment 400K). 800 credit and very well capitalized, but doesn't want to have to liquidate to finish project.  Property located in Baltimore County.  Private and Institutional HM Lenders only please email or PM.  Thank you.

TD Bank will go up do 75% on an Investment Property HELOC.

PM sent.

PM sent.