All Forum Posts by: David Garner

I just got quoted 7.25% as a foreign national on 70% LTV refi. One would hope a US National with decent credit and 25% down might get a significantly better rate than me.

Hey Brittany... This has happened to me as a borrower maybe twice in about 100 transactions with private lenders. As you sadly now know, there isn't a great deal you can do if this happens. 

You're right in saying networking and relationship building is paramount. For me, nowadays we have pre-exisiting relationships with enough PMLs to not have to go looking, but it's taken 10 years of doing business, and consistently doing what we say we'll do (delivering) to get to that point of trust with our lender network.

The best advice I can give, which is probably what you've already heard many times, is to start local, go to REIA meetups, be consistently present, learn who's who.

Who can you find knows the guy/gal who knows the other guy/gal who has the money to lend?

There is no shortage of pro hard money guys either, although terms will not match private money.

At the moment, yes... 15% down with PMI.

Right now, it doesn't. We are in a scaling phase for at least the next 36 to 48 months. That means we're buying 5 houses/months right now, so it's hectic.

Once we reach our target, or out target changes, or our goals evolve, hopefully we'll then ha e all the freedom we ever wanted.

That said, I love the business, so I not being 'free' from it is somewhat of a blessing.

Hey Jeremy... just to be clear, with 100k in existing debt, and approx. 50% equity, the total collective property value comes in around 200k, right?

If I misunderstood that, please correct me.

Assuming I'm right, what's your intended/expected purchase price?

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $20,000

We bought this one as a long term rental. The price was too good to miss!

What made you interested in investing in this type of deal?

The house came up, we know the street, the price was right, so we bought it.

How did you find this deal and how did you negotiate it?

Purchase discount and rehab

How did you finance this deal?

100% funded by a passive investor through our private lending program

How did you add value to the deal?

Mostly the purchase price, but we did spend some money updating. new floors, lots of sheetrock repairs, paint all round, and some other sundry items.

What was the outcome?

We have a great tenant in this one, always pays on time and keeps the house nice, and it cashflows about $200/month after all costs/reserve. We also took a small cash out at closing, so we have less than zero in this deal.

Lessons learned? Challenges?

If the deals comes to you, jump on it before it wanders off to someone else!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $22,000

Another buy/hold long term rental. We originally intended this to be a rent to own property, but the house/street/value is more suited to a long-term rental strategy... so that's what we did!

What made you interested in investing in this type of deal?

On paper, this deal fit our buy box for our affordable housing program, but in the end we rehabbed and listed as a long-term rental with a long term hold in mind.

How did you find this deal and how did you negotiate it?

MLS - lowball offer

How did you finance this deal?

100% funding with a passive investor through our private lending program

How did you add value to the deal?

Purchase discount and renovation

What was the outcome?

We had to pivot the plan and decided on a long term hold. We'll either pay off or refinance the private note at maturity and keep the house. The maintenance is low and the tenant is great.

Lessons learned? Challenges?

When the plan isn't the plan anymore, be prepared to pivot.

That was the price... I believe it was listed for $30k initially. At the time, my partner in PA and I were going 'MLS fishing' once a month. We'd look for older listings that fit our buy box, and make crazy low offers to see what came back.

 Thank you!

 Thank you!