All Forum Posts by: Charles Carillo

In this episode, Mike Vann talks about "Scaling Your Real Estate Business to Over $60 Million"

Here is some of what you will learn:

- Investing strategy and goals changed over the past couple of months with COVID-19.

- The common mistakes new investors make.

- The main factors that have contributed to his success

Listen to:

https://podcasts.apple.com/us/podcast/gi53-scaling-your-real-estate-business-to-over-$60/id1478632257?i=100047949751

Youtube:

@Christian Cajina

I am not sure how easy it is to get a hard money lender in Canada but in the US, credit is not really a factor with HMLs.

@Festus Edward

A letter of intent is normally not binding because it is really an agreement to agree and just outlines the deal. There are some LOIs which are legally binding but I have never used one. I would speak to your real estate attorney for specific advice on your situation.

@Aaron Ferguson

I would be careful with signing on a mortgage for a property that is not in my name. Could you purchase the property from the seller, get a mortgage traditionally and then a second mortgage from the seller for their equity?

@Julie J.

I would make sure to verify you are actually saving money with one of these loans. With a "no closing cost" or "zero closing cost" mortgage, the lender is tacking on the fees they are "covering" upfront with a higher interest rate.

@Christian Cajina

We work with foreign investors and the first step we suggest is for them to begin a relationship with a US accountant who works with foreign investors. They will be able to walk you through the process and your options on how you are able to invest. A hard money lender will be less difficult to find in the US since they normally do not check credit or have a credit requirement. We have worked with a coupe lenders prior that do longer term loans for foreign investors but I think they also do short term loans. DM me if you need any contacts or referrals but I believe speaking to an accountant is your best first step.

@Terry Benedict

In Florida we have 100% brokerages and also referral brokerages that do not have any minimum sales that sometimes do not even require you to be a Realtor. I would start searching these out and see if you can join one for the 2 years. They might require a minimal annual fee but there won't be any pressure to close a property. Make sure they know you want to manage properties.

@Khaled Seirafi

I would start researching these areas and ultimately start reviewing brokers; their current listings and their sold properties. Check Loopnet, who is listing, what are they listing? Is what they are selling matching what you want to buy? Join their mailing lists. All of this can be done relatively easily.

In my experience, any broker that asks for proof of funds for larger commercial multifamily properties is vetting you since it is not a normal requirement because these properties are traditionally syndicated.

When I look for brokers, I work a little differently and try to find ones that are smaller, handle smaller properties but occasionally receives a larger property that fits my criteria. These brokers typically do not have a buyer's list for a property like this and might not know how to value it.

Lastly, I would create a resume or a credibility book that shows your current holdings and email it to brokers when you speak to them.

@Zach Wright

Most local banks are tightening their lending standards and requiring a larger down payment because of COVID. This could differ with the local banks you have been speaking to but I have seen banks requiring 5%-10% more down than previously required. I would reach out to all local banks and credit unions in your area to see what lending products they have available for MF.

The best way of purchasing these properties is with owner financing. I would try to get the term as long as possible with interest only financing. It is really difficult to get a decent return if you go the traditional route with ~35% down + reserves + closing costs + fees.

@Mike C.

What is the cap rate for the area? Are you self-managing?