All Forum Posts by: AJ Shepard

From my understanding there is a lot of subjectivity in how forbearance is offered in practice and up to the servicer of the loan.

I just wanted to see if there was anyone out there that has used this during the pandemic? And if they could share their experience?

I’ve been told that it won’t affect your credit. But then I’ve been then told that even though it won’t affect your credit mortgage guidelines have been updated to not allow any new loans to a person that is in forbearance and in order to qualify they would need 3 months of completely caught up and on time.

My question is, has anyone entered into this and successfully negotiated with the servicer to allow for payments to be added on to the end of the mortgage or renegotiate the terms. And, then do you qualify for loans?

@Doonie Johnson

Sounds like you’ve got a good start and plan with some great experience. Keep forging ahead for sure.

I second the mention of a mentor or someone that can help with lending on a deal. It’s a great problem to have, but having too large of a deal requires some one with a net worth and experience the that reflects that type of deal from a lending perspective.

I’ve heard this piece of advice before and can attest that it is the one thing that allowed us to propel moving forward. Mock up a deal in your area, something that has sold, something that, when you find a deal, will look like that. Get all the necessary paperwork, marketing materials, etc... this is used as a pitch deck to talk to potential investors to see if they are even interested in what you would be doing in the future. It’s good for you to go through the motions, so when the deal does come up, you aren’t scrambling to create something when you should be spending time talking to your investors and network.

@Sam Jurgenson

We have a local meetup that happens every 3rd Thursday. It’s called WIN (Westside Investors Network). We usually have a speaker that talks on some aspect of real estate investing.

Come join us next month!

@Kyle Swengel

Congrats on working on your business and scaling up! We set out in 2019 to do a syndication in Portland Oregon much like what you are talking about and it’s really about researching and educating yourself on how to set up the deal. Our first syndication was about 1.3m and 9’units. The best piece of advice that I think we received when first starting out was to mock up a deal. Put one together that was sold previously and make it look like what your next deal wants to be.

This serves two purposes. First, it requires you to go through the motions without a timeline and allows for you to put together the required and necessary documents to perform a syndication. Next, it serves as a marketing piece to talk with and have a non pushy conversation with investors. It’s a lot easier to say you can’t invest now, but if it looked like this is this something you’d be interested in ( you also can’t market an active deal to a new relationship if you are going under 506(b) exemption).

Once you have a deal under contract it’s much easier to edit rather than create when you have a strict timeline.

Hope this helps!

@Wa Chan

More money down makes for a larger cash flow.

Usually we like to find a property that has rents below market and some deferred maintenance so that after you put a little work in you can refinance. Even though you started with 15% equity and put in some money, the value of the property goes up enough that you get most of your cash back.

https://www.realtor.com/realestateandhomes-detail/11650-NW-Saint-Helens-Rd_Portland_OR_97231_M29063-16701

Is one that looks like it could be a deal, but has a couple problems that need to be solved. There is value in solving problems.

@Gregory Oliver

It might be more money, but having a larger house with more rooms allows for more rent.

Choose your roommates wisely, if you can, screen them. I’m supervised how often we screen roommates together and they have no idea that the other person has terrible credit and many unpaid bills.

@Dakota Harrold

VA loan or not, you get to count the income with a multifamily property. Most people wouldn't qualify for such a large purchase without being able to count it. Definitely check with your lender, I did hear murmurs of Freddie/Fannie requiring prior landlording experience to qualify. I have not heard if that has gone into affect.

Mike Maier with fairway mortgage is very good at getting income properties to qualify. Used him on 20+ deals in portland oregon.

@Johnson Michael

Your CPA should be the one giving you advice on whether you're want to invest individually or with an LLC.

If you have an LLC, my gut would be to use that. It's a lot easier to write off expenses for the investment if it's through a company. Such as spending time or money to vet deals.

@Danielle Huang

1. Syndications are a platform for raising money and aren’t singular to multifamily apartments. They can be used for whatever investment that you would like to pursue.

2. I am not sure how california works, but if you want to do development I believe that you would need a contractors license. My guess would be to find someone that is good at performing this type of work (maybe your investor) and have them help raise money with you.

3. You would raise funds like you would for any other syndication. Many people vet the sponsor or GP, so you would have a larger mountain to climb when talking with investors. Sounds like you are joining a boot camp. If you are just planning on doing this one syndication, it might be easier to find a syndicator to partner with.

Keep plugging away at gaining more knowledge.

The advice that I give starting out in syndication is to mock up what a deal would look like. Take one that’s been sold in your market or developed in your market and create all the materials that are associated with that deal. This can be used as a pitch deck for future investors. So when the time comes, you know what it’s going to look like and the people that you have talked to already have an idea of what it will look like.

@Amey Naik

If you like Austin, I would look into multifamily units. Something small, like 2 units to 4 units. Run the numbers on those and see what you think. My bet is that they will cash flow a lot better.....

You’ll have other costs in there, such as property management, maintenance if it’s an older building.

Rule of thumb is to not count on a lot of appreciation in your modeling. But, investments are risks, and if you believe in it, you may be right. But better to buckle down and find a better deal.... search for wholesalers in the area, look at small multifamily.