All Forum Posts by: Chris Wooten

Stephen, What are you bringing to the table? I have a niche system that is working for me at this time, but the tempo of results is often leaving funds uninvested. It can be a good thing to "keep some powder dry", but we are growing this year. Feel free to PM me, if you don't want to publicize. Looking forward to hearing back. -Chris

It can cause the house to sit on the market longer because the lenders will require the buyer to carry flood insurance even if only an edge of the yard is in the flood area. However, if the area is hot, the house will move. Get a flood insurance quote and work it into your numbers. Then pull the sellers price down. Good luck, Chris

You are correct in that non-recourse lenders appear to be niche. However, there are many entities out there that can provide non-recourse, but many don't know or don't advertise it. iralending.com or NASB are good places to look. NASB normally tops out at 60% LTV, but there are others that will go higher. Their terms are typically 30yr amortization on a 10 or 15 yr term, so you pay the heavier interest and balloon to pay off. I have done this a couple of times, but I am still trying to figure out what to do with another small IRA that I have. I am leaning toward offering to lend to a friend that is flipping, and gain some volume there. I'm not a CPA, so this is strictly my understanding. Income produced from IRA held properties, that have a non-recourse loan with them, are subject to unrelated business income tax (UBIT). Example $100k property with 60% non-recourse loan, drawing $10,000 a year rent, would have $6,000 subject to UBIT. UBIT rates escalate quickly, but I personally don't stress it. I just pay the tax on the additional income. Good luck in your endeavors. -Chris

Heather Colley Brandon will be in Franklin tomorrow at the Music and Money Investors Group. If you want to go, you'll need to search for it on the BP forum to get a seat. We haven't been at this long, 6 months but we've turned over 4 properties and have a 8 unit apartment complex. We are getting surprising returns, and we've used a variety of strategies. Feel free to reach out and I can tell you of our escapades. Creativity in real estate does work. -Chris

My wife and I are planning to attend. We were planning a trip to Nashville to check on our deals later in the month, but we are rearranging our schedule to be there Wed. morning. -Chris and Carrie

Home prices in and around Nashville are lofty. There are still deals to be found, but patience is key in finding these. Bigger investors are getting more involved in tear downs and new builds instead of scrapping the bowl to find the remaining deals. Good luck, Chris

Welcome David. We were anticipating starting out wholesaling as well, but we were faced with back to back great deals that we couldn't pass up. We turned to friend and family for financing first. Then we turned to private equity. We were able to stop there and never had to get hard money involved. There's no greater motivator than being 1 day from the end of your inspection period and having to find a way to fund the deal. Feel free to use us as a sound board of you have questions and we'll keep you in mind for future deals. Right now we are taking a breather to get taxes done and develop the next leg of our business.

Nashville is booming and there are various price points all around town. You need to become familiar with the price per sqft in a couple of areas, and then keep your eyes peeled. Deals surface every once in a while around here. Have your inspector, contractor, title company, and agent ready to roll so you don't sit on the property once you find it. I did my first around Nashville 6months ago and I'm currently flipping numbers 5 & 6. The deals are out there you have to be ready to jump. I used other people's money on the first two, so not a bad strategy.

It looks like you're versed in SFR. MFR/Commercial financing is a little different. The financing you can draw is typically derived from the NOI, so you can get a better feel for availability once you're looking at a specific property. If the cap rate is high enough, you can find private investors that are willing to join in to take a percentage of the monthly rents. Good luck finding these around Nashville. The other option is commercial lending, but they tend to have minimum lending requirements.

Can you elaborate on your criteria? Type of property, Loan to Value, Term, Interest rate, etc.