All Forum Posts by: Cyril Soigneux

Quote from @Kerry Noble Jr:

go on craiglist and go to the international side and find Paris.....you may be able to connect with investors through those posts

 In France, we do not really use Craiglist (if not at all), rather LeBonCoin

Thanks, do you have more details on the Powder Springs / Dallas, GA for houses with 3 beds/2 baths in terms of prices and price cut possibilities?

Quite expensive indeed!

How many contractors / professionals have you met? 

Is there a window maker in your area that can give you 1) the usual selling prices for similar windows 2) the referral for a professional that is used to installing their windows  ? (the same question can be asked for the board siding)

Is it an option to have lower grade materials or substitutes? 

Can you pass some of the costs to the tenants or will it increase your ARV enough?

For baseball fans, you can now be the coach on Sorare :)

There are so many peculiar hotels in Vegas with discount rates all year long. Make sure to offer a great experience to your guests to differentiate yourself from the classic hotel offering.

In metro areas, also check local regulations as cities tend to limit or outlaw short term rental.

Quote from @Nadeem Ahmed:

@Cyril Soigneux

I just want to be clear on my intentions. The reason I'm going the hml route is bc I don't have enough money to put down plus closing costs. I was under the impression that I would be able to buy a rehab multi family, and with the new equity refinance with a traditional bank. So both the hml is paid off and I get to keep the property long term. Is that possible with hml loans?

Now that makes sense! You can definitely do that as long as the numbers make sense.

Make sure to factor in the financing costs during the holding period (interests and points charged by the HML) as well as other operating costs (insurance, taxes...) and to be super confident with after repair value (ARV) of your property.

Keep in mind that when you refinance the bank will only lend you money at a certain LTV and DSCR so if you have low money at the moment, your biggest risk will is to have a short fall between the appraised value and the bank's max loan amount based on this appraised value.

For the figures to plug in your spreadsheet, liaise with contractors to have a clear estimates of the costs, agents and/or local investors for a reliable ARV comp. For the refinancing, make sure to use a lending rate north of 6.5% as the rates should continue to raise in the coming months

Things you may take a look at:

What is your PM's policy to screen prospective tenants? 

What are the reviews on this PM?

Are they better PMs around?

Is your property located in a bad neighborhood? (which may explain that it attracts only bad tenants)

I understand that you may want to sell the property as it has been a nightmare for you - I sold an apartment once (at a slight profit) because of several bad experiences with it so I can understand you are getting emotional with this one.

Also, make sure to have a framework about your investing strategy highlighting the type of properties you are looking after and a reputable local team in place.

Hello,

Give more details about your project as it is not clear why you seek hard money financing (lots of rehabs/flip or BRRRR)?

Not sure when you say that the hard money lending rates you see are similar to bank loans (you have to compare maturities first and there is no way a hard money lenders gives you a 30-year loan).

Regarding hard money lenders in Buffalo, you may take a look first at the ones listed on BP's website in NY state

Quote from @Scott E.:

Great question. From my perspective, seller financing makes sense on a higher maintenance deal like a SFR, a duplex, a triplex, or a commercial deal that is not NN or NNN.

But if there is a NNN lease in place, why would the seller entertain a seller finance structure? They are probably getting 8%+ return on their money at this point. And the investment is already pretty hands off due to it being NNN. So where is the value in flipping it to you and making ~5% on their money?

(I'm asking to add to the discussion. I'm genuinely curious as to why a seller would entertain this on a NNN deal.)

Even with a NNN leases, the owner is still on the hook for large repairs and may face vacancies which can lower his return. 

Seller financing can and usually include a downpayment (negotiable between parties), and the loan is secured by a note and/or personal guarantee. Less return but less risk for the seller.

Last but not least, the seller financing agreement is likely to be medium term so the seller may match the financing period with his future financial constraints/goals (retirement, children going to college etc...).

So, investigating the seller's motivations will show if seller financing is an option for the seller and if so, what terms / tenors may work to match their motivations.

Figures should make sense though and the exit strategy crucial if you have to refinance to pay the balloon payment to the seller at the end of the financing period.

Hello,

I live in France and I have purchased 5 properties (and sold 1) in my city since 2014. I live near Luxembourg and my district is a nice place to find great tenants who work in Luxembourg and make a decent salary that cover 4-5x times your rent.

Let me know if you want to discuss further about the specificities of the French market, laws or taxes.

Cyril