All Forum Posts by: Colton Hahn

My understanding is you would need an appraisal to show the new value. Once you have this, you would send the report to your lender showing the updated value and then request the mortgage insurance be cancelled based on the LTV being 80%.

Mortgage is $160,000 (20% down payment). You invest 20k in cash to increase value of home to 255,000. The LTV would become 62% because $160,000 owed on $255,000 value meaning your equity is now 38%. If you cashed out to 75% (191,250) that would be 31,250 (191,250 - 160,000).

Keep in mind that there are fees involved in refinancing so you would actually get under 30,000 back in cash, how much exactly will be depending on the lender and their fees

I think looking at population, job and income growth in an area are three great ways to determine the robustness of a market when paired together :)

Hey Andrew,

The questions we get often times are about:

1. Track record for the sponsor: What sort of return has the sponsor been able to reliable generate, and is it net of fees? How many deals have gone full cycle?

2. Acquisition standards: What standards does the sponsor have for acquisition, how strict are they, and why the standards are that way. This is going to  tell you if you are a good match for the sponsor. Remember this should be about finding the right sponsor FOR YOU. Everyone has different risk tolerance, make sure you are a good fit for them and vice versa.

3. Ask to speak with a current investor and if they allow that sort of thing. Hearing straight from a current investor is a great way to get a good feel for how the sponsor operates.

These should be the questions everyone asks of their sponsors in my mind, and are the questions we get most often :)

Hey Roland,

I too want to thank you for your service first and foremost. Timing the market is something that is nearly impossible and while you wait on the sideline others will be reaping the benefits of the market. Do your due diligence but try to avoid analysis paralysis. 

If a good deal walks like a duck, and talks like a duck its a duck. 

Good luck to you!

Hey Sherry,

Is this post about applying for a loan and you have not hear back about the status of it?

Hey Christian,

Firstly I want to say good luck! I have family in the Huntsville area and they are always talking about how much activity there is in the area. It really is a red hot market, and one I think would be a great one to get in on while you can.

Secondly, in terms of groups I would start off with your local Real Estate Investor Association (REIA). Make connections there and try to find out what other groups those members are apart of. Networking, like in most things, is key and every area can differ in where the investors spend their time.

Hey there, we at BAM Capital actually purchased and sold a property in Anderson! We achieved a 64% IRR for our investors. I also have personally lived in Anderson as well, and while there are areas to avoid for sure, some areas are diamonds in the rough such as the Edgewood area. Good luck!

Great post, we need as many of these as possible to reduce the number of people making these same mistakes. Timeframes and miscalculating them can be a big stressor, so having the dates down pact is a must. Good luck!

This is a hotly contested question, I think the home buyers market will remain hot which will only increase demand for multifamily housing in the next 5-10 years at least in my opinion.