All Forum Posts by: David Delmar

Hi all:

I am looking for competitive financing products for my next short term rental. Generally expecting to put 15-20% down but would really prefer 10%. Second home loan is not an option. If there are any private financiers out there, I am a real estate attorney and am capable of working out the details of a mutually beneficial arrangement as well as drafting all documents, promissory note and deed of trust/mortgage, etc.

Look forward to hearing from you! Thanks!

Hi all:

This may be a longshot, but I recently purchased a short term rental in Broken Bow, Oklahoma, that is performing very well. I have identified a second, very similar property that I have an agreement to acquire for virtually the same price. I am looking for private financing for all or part of the down payment on my DSCR loan or, even better, private financing for 90% of the purchase price. I am a real estate attorney and am happy to discuss terms (balloon timing, interest rate, etc.) and even prepare all the paperwork (promissory note, deed of trust, etc.). Also happy, of course, to provide documentation and analysis sufficient (I hope) to instill confidence in any private lender who may be interested in this opportunity.

Please let me know if anyone has any interest or knows someone who may.

Very much appreciated!

Quote from @Gurjot Grewal:

Hello BP,

I thought I had my first investment deal ready to close. We are past the inspection period, waiting on loan approval. But today I find out the seller renewed the tenant on one side of the duplex at 950/month for a full year. My property manager believes market rents are in the 1200-1300 range. I ran all my numbers at 1250/side. Leases were set to expire in febuary. 

If I close now my roi is only 2.3%. This is now a bad deal. I also think the dscr is too low so maybe the lender will deny my loan. 

I have a financing and appraisal contingency. What other options do I have to get out if this contract without losing my EMD? Would appreciate any help.

 Gurjot:

What the seller did was fairly shady. A well drafted purchase agreement will include closing conditions that protect the buyer (you) if the seller does what he or she did here. Often you will have a termination right. If there is no such termination provision, then as the previous post commented, you need to find a way to get out. The financing contingency is one option. Another, often overlooked option is the title review contingency. Many purchase agreements allow you to terminate if you object to one of the “exceptions” to title listed on the title report/title commitment and the seller fails to fix the problem (which they usually can’t). Check the title review provisions in your agreement to see if you have an “out.”

Quote from @Alvaro Rodriguez:

I have a house under contract, the bank was giving me trouble so the seller and I agreed to seller finance. We have agreed to a price, interest rate, downpayment, and balloon payment terms, and would be to 30 years. 

Now that all the terms are agreed to, what are the next steps? who can prepare the paperwork for us? do I go to a title company? the seller and I have our own agents because we originally tried the conventional way, and we still want our agents to get paid. 

any guidance on the next steps and how the process works is greatly appreciated.

 Hey Alvaro:
I am a real estate attorney. Owen is absolutely right - if you’ve agreed to terms, next step is to get the legal documents in order. The seller will want a deed of trust or mortgage to secure the loan, in case you default, so you’ll need to prepare that. The promissory note itself, which you’ll also need, is the formal legal document that extends the loan to you from the seller. If you negotiated a guaranty (someone other than you the seller can go after if you fail to pay) then you’ll need that also, but I personally would advise against a guarantee. The seller’s best recourse if you fail to pay will be to quickly and easily foreclose the deed of trust and take the property back. 

Be aware that there are powerful ways you can create an advantage for yourself and protect yourself by including certain terms in the note and deed of trust, so definitely have an attorney draw up the documents and if the seller will allow it, you should draft them:

Quote from @Ronald Rohde:

Welcome! I'm another attorney in CRE transactions. I also personally invest in industrial NNN properties in DFW.

Polsinelli rates probably won't get any clients here, I'm at $500/hour and i think that's a bargain!

What do you want to invest in? 

 Hey Ronald!

I am looking at short term rentals right now. My fiancé and I are preparing to make our first acquisition in quarter 1. Very exciting time!

Quote from @Bruce Lynn:

@David Delmar  Welcome...  any particular kind of business that you want from the investors here on BP.   There are a fair amount of requests, although too often it is just....I'm looking for an attorney, but they're not always specific on what they want that attorney to do.

 Thanks, Bruce. My primary goal here is actually not to network with prospective clients, but to network with other investors, lenders, agents, contractors, etc.

That said, if there is anyone who could use mine and my firm’s services, I’m happy to discuss that. My work is transactional (not litigation — I.e, I don’t represent people in lawsuits). And I work on all aspects of real estate deals, whether it be drafting or reviewing purchase and sale agreements, loan documents, reviewing title and title defects, drafting or reviewing leases, etc. 

Quote from @Lindsey Allison:

Hi! I'm brand new here and I have family in DFW. I'd love to connect. 

 Awesome! Great to meet you, Lindsey. Perhaps we can get together sometime!

Quote from @Michael L.:

Quote from @David Delmar:

Hi everyone! Great to be an official part of this community. I’m looking to do some real estate investing in 2023 and would love to meet like minded folks in DFW.

I’m also a real estate attorney with substantial experience on financed and cash transactions (including JVs) from single family residences to multi million dollar commercial deals. I’m happy to answer questions and assist folks however I can.

Good to meet you all!

@David Delmar, I am from Baltimore and also new to the community. Are you able to represent clients outside of the DFW are?

Hi Michael:

My firm has offices all across the country, so depending on where you’re doing deals we can likely assist. That said, I am always happy to provide some free informal advice here, if you’d like to send me a private message :) 

Hi everyone! Great to be an official part of this community. I’m looking to do some real estate investing in 2023 and would love to meet like minded folks in DFW.

I’m also a real estate attorney with substantial experience on financed and cash transactions (including JVs) from single family residences to multi million dollar commercial deals. I’m happy to answer questions and assist folks however I can.

Good to meet you all!