All Forum Posts by: Brett Tvenge

I have my first fix and flip under contract in Glendale and looking for contractor/vendor recommendations while I am still in inspection period. If anyone has referrals that would be greatly appreciated and I would love to connect. Thanks in advance.

Our listing at 1809 Court St in Beatrice Nebraska has been on the market since August and it will not sell.  The location has some downsides, so we have lowered our price tremendously based on that and the market conditions.  We left a blank slate with the walls as it was all wallpaper before.  We bought at the wrong time of the market.  Appreciate your suggestions on getting it sold. Thanks 

I am learning, this game is based a lot on CONNECTIONS. I want and need connections to succeed. I am not interesting in learning it all on my own.

Hello Everyone,

I am new to the connectedinvestors community and am looking to get started in wholesale deals and am in search of any educational or resources and am willing to work alongside established pros as I start this journey. I'm looking forward to becoming more involved in this community and look forward to connecting with other likeminded investors and individuals!

Hi all.  What are your recommendations for LVP brands 12 mil and higher , under $4 sqft.  Class B property.  Thanks 

Hello everyone! BPCON 2022 is officially sold out, but we know plan can change. If you have a ticket, please post it in this thread. When it is sold, please quote your original post and say "SOLD" in caps in the response. This will help keep track of who has tickets and who is still looking. If we are able to open any additional ticket, they will be posted here as well, but we are not expecting to have any more availability on our side. Looking forward to a great event!

DSCR loans are a fantastic tool for investors and can help them add rental properties when there is not enough qualifying income to get a conventional loan. But, as a Mortgage Broker we look for any and all ways to save our clients money. So if there is a way to gameplan or strategize a way for an investor to be able access conventional loan rates instead of DSCR loans – that means a lower monthly or more buying power for the investor. Plain and Simple!

As most of you know, DSCR loans have less income documentation than conventional loans. They only look at whether or not the property cash flows. Most DSCR loan programs will use long term rents, and various lenders have different cash flow ratios that they accept. With 15% downpayment some want positive cash flow. With 20%-25% some may consider slightly negative cash flow. STR analysis is starting to come into play as well.

Pros – cash flow is the only income requirement/documentation needed. You can close and hold title in an LLC. 5-8 unit and other unusual property types are acceptable.

Cons – higher rates, many DSCR loans have Pre payment penalties

Every buyer has a different looking profile, so one glove does not fit all. But, I am going to talk about 3 common strategies for buyers to be able to turn their income scenario into one that the conventional mortgage world will like.

• 1) For home buyers with significant cash assets – Open a Living Trust! This path takes a little bit of cash/reserves, but it is the easiest way to turn someone with no usable income into an A+ profile for a conventional loan. If Bob Smith opens a Living Trust, the Bob Smith Living Trust, and has $200,000 of cash, stocks, bonds, or other liquid assets put into that account, we are off to the races. The Bob Smith Living Trust can give a monthly distribution of $5,000 to Bob Smith the person and we can use that as qualifying income for a conventional loan. EASY! But this option takes a decent amount of cash
• 2) Self employed buyers – The old status quo of lenders needing 2 years of personal and business bank statements is not always the case anymore. Maybe self employed borrowers have ups and downs year to year and that caused problems in underwriting. When we run our pre approvals, the pre approval software will tell us if 1 year or 2 years of tax returns is required. This makes or breaks deals more often than buyers, realtors, and most loan officers realize. The point, have an in-depth analysis by your loan officer and make sure they are looking for this type of approval. Many lenders can do this, but most do not focus on it!
• 3) For buyers that are adding multiple properties in the same year – STR's have become more and more popular but the conventional lending world struggles to use STR income until it hits your tax returns. WHY? Because the lender has no idea what your expenses and write offs will be. Revenue is one piece of the puzzle, and expenses are the other so we can tell what your true profits are. So, if you are planning on buying multiple STR's in a single year, 2022 for example, they will not show on your tax return until you file you 2022's return in early/mid 2023. If your debt to income ratio is tight and you can qualify for more and more conventional loans if we can use rental income, what should you do? Consider starting off with Mid-long term rentals for the first 6-12 months. If you get a lease on a property you bought in June, we can use that rental income. So, when you buy another home in Oct, we have rental income to use. Then get a lease on the home you bought in Oct, so we can use that rental income for the next home you are buying in Dec. When 2023 hits, flip them to STR's

Every scenario is different, so there are many other approaches to consider. If you have a great Loan Officer, consult with them. Game planning goes a long way to ensure maximum success. If you do not have a great Loan Officer, find one!

Hi BP!

I am looking for some recommendations for real estate attorneys in the Phoenix AZ area. I need help creating operation agreements for of two LLCs. The LLCs operate short term rental properties.  

Thanks for the help and good luck out there!

Bobby

Hey Phoenix Investors,

Just looking at the area around Moon Valley Country Club. Anyone doing any investing here? It looks like there are some potential opportunities for Fix N Flips (obviously market conditions are fluid right now). But wondered if anyone has targeted this area and wondered what kind of results you had.

Happy Monday!

Bob

What are some of the things as flippers you’re protecting yourselves during this time with rising interest rates? Would like to see what some of you all are doing out there to stay ahead. Would appreciate any feedback.