All Forum Posts by: Daniel Molina

@Corie Carpentier The loan amount you are looking for is a bit light and since you plan on doing this loan for you to occupy most private lenders will be out. I agree with @Curt Davis that you should target local credit unions to help you out. They can usually offer better programs including 203k which will provide some funding for rehab. 

You should also consider doing a HELOC if you have equity in your current property.

@Josh Glenn Congrats on getting into the game! I am very bullish in that market as well as a bit further south in Birmingham, AL. I have contacts that help investors so please do not hesitate to reach out to me. I can offer advice on market, vendors and direct lending. 

Feel free to call/email or PM

@Alex Quainoo I cannot stress how important it is to do what everyone suggested. Know who/what you want to be and learn from the players that are already in the market. I would also suggest to start partnering with lenders so you do not limit yourself to one or two projects based on your liquidity. 

@Jeremy Klein I think it depends on the investors situation. I always recommend using leverage as there are plenty of specialized/private money lenders out there who can help you fund the acquisition and rehab of a project. In some case, this can be non-recourse money as well. 

I am happy to talk in more depth about it if you want to call or PM.

@Khorey Beauford Congrats on taking the first step! I really like the south ATL market but you need to know the market on a more granular level as some places haven't seen the same growth. Without knowing much like address/zip/sq ft cant really say if it is a good deal or now but sounds like it has potential. You would need to take any rehabbing (even if its just lipstick) into consideration as well. 

RE you questions:

1. Aggregate tools are great for this and usually free. Zillow can tell you rents in the area and so can sites like rentrange.

2. You should always price out PM and if you are capable i would recommend trying to do this yourself with the first/second property. You can start off with national companies like, Renter's Warehouse. They have helped me and a client in the CLT markets.

3. Refer to comments about. 

I hope this helps you, feel free to call or PM always happy to share some advice. 

@Caleb Dryden

You are in a very common position that most investors will eventually find themselves in. I have to agree with the comments that @Bob Okenwa and @Andrew Syrios stated. Your decision on which lender to go to should vary based on rental portfolio value, number of units and vesting type (LLC or personal name).

Often time specialized lenders have minimum requirements such as 5 doors and min loan amount of $500k, these are to support the borrower since anything below that threshold will still cost the same to close driving up your cost to capital. These lenders can be a huge help because they can be more creative than local banks/FCUs since they are not under the same restrictions and usually can offer some non-recourse options to investors.

When reviewing local banks, you should consider their terms. They may be willing to lend against a smaller portfolio and accept lower valued assets; however, it would be a full recourse loan and have a shorter amortization period (15-20 years vs 30 from special lenders). Lastly, you should consider their DSCR requirements since they tend to be higher than the lenders who only focuses in this space.

Hopefully this helps you with making you decision and feel free to reach out to me offline with any other questions you might have. 

Hi Daniel, You can pursue specialized lenders for investors since we often lend to non-residents and foreign nationals. The challenge would be finding the right program. Not everyone can offer lending for just one small multi or SFR. Understanding the requirements will you with meeting your goals. The money is absolutely out there to help you with leveraging your next purchase. If you have any more questions or want more details feel free to message me or email at any time.

@Abigail Helfer As I am sure you gathered from what everyone is saying Charlotte is definitely at a high and still climbing. Most people buying in Charlotte proper are either buying with heavy rehab or building on land. 

If you are willing to look elsewhere, I would recommend looking at Cabarrus, Union and Gaston Counties. I personally would go Union or Cabarrus county focusing in the cities of Concord, Kannapolis, Stallings, Indian Trail.  Gastonia, in Gaston County, does offer good deals/opportunities just nothing that I have had interest in.  

Those cities have shown growth and developing infrastructure to support the growing population.  You can reach out to me as well with any further questions since I am local to Charlotte and a specialized lender for RE investors. 

@Geraldine Veiman

As many already mentioned, your best bet will be to go to specialized lenders or non-bank lender. Depending on the asset/unit count you can either get programs that will mimic conventional loans (30yr, fully amortizing, fixed rate) or commercial programs (5-10 year balloon with 30 year amort). Again, be prepared to have lending limited to 60-70% LTC/LTV as a foreign national investor.

@Jeremy Taggart you can get this asset financed under an LLC, especially when using specialized lenders. Even when going this route, your assumption is correct it will often times be based of comps since it is not a true commercial unit.

If you have any additional non-owner occ assets you may be able to get a portfolio loan. Typically those are looking for at least 5 units. Feel free to PM or call if you want to go over any additional details/questions.