All Forum Posts by: Darrin Carey

@Joe Fairless is a great start for the property management. 

The commercial lender you want depends a lot on the scenario. If you're "bankable", and looking for just one loan in the next couple years, anyone can do it, you're just shopping price and convenience. If there are other. circumstances or more deals in the future, look for a lender with experience as a real estate investor. They will understand your perspective much better than someone who only does loans.

How much do you have to put down on the property?

@Jeff Mann Thanks for keeping my Air Force in good hands. If you want some specific guidance on a basic game plan you can implement, give me a call. I'll help you get it started. 

At the high level, here's what you need to do.

1. Build a team and a network. Keep it growing.

2. Keep learning and improving.

2. Generate capital.

3. When you have extra capital, buy cashflow.

4. Repeat.

Thanks @Jay Thoms. She gave me your name. It's on the list already.

You're welcome! Here's to profitable investing!

Each properties performance is what matters most. Debt-to-Income is a smaller concern unless you have negative cashflow. It's looked at, but there are no "rules" to follow. For example, we just closed a rental loan for a local investor whose Debt-to-Income was around 75%.

Rental loan rates are currently ranging from 5-7% or more, depending on the deal specifics, and the level of documentation the borrow is willing to do. Points and fees vary a lot; they can be up to 5 or 6% of the loan amount or a little as 1%. That cost is very specific to the deal.

Your LLC needs to be in place, but that is all. When you get a lot more properties it will matter more.

Terms will vary mostly on the deal, and to some degree, your personal experience, credit etc.

A new investor putting a small amount down may be paying 13-15% and 5 points.

A very experienced investor putting 30% down may pay 9-10% and 5 points.

Mid-range of experience will fall between the two.

Of course, the specifics of the deal drive everything, so even those numbers can vary widely.

If you are doing fix and rent, plan on a refi to better terms at the 12 month point.

Congratulations on your first deal, and welcome to our world. How much of your Automation Engineering background can you put to use in the Real Estate side?

@Kunal Mishra Traditional mortgages like you've started with can get you through the first 4 properties -- if you keep your Debt-to-Income ratios good, credit score up, etc. After that, you'll find commercial loans start making more sense if they didn't before. Contrary as the name seems, you can use a commercial loan for ANY property where it makes sense, including single family, duplexes, etc.

Once you start doing loans on the commercial side, you'll find that property performance is far more critical than your personal debt ratio. And most importantly, there is NO property limit on the commercial side. One of our local investors has over 85 mortgages on single family homes.

Expect to need about 25% equity (it varies based on details) to do a commercial loan for a property.

If you're definitely coming, RSVP soon. The Dayton Networking meetup is close to filling the room.