All Forum Posts by: Daniel Molina

Dale Fussell, Jonathan Meek (meek law firm), Brady & Kososky, Nicole Merritt (Merritt law/queen city closings) , or Harry Marsh. 

I have personally closed deals with all of those attorneys mentioned above. 

@David Rutledge and @Royston Lobo I moved to CLT and watched the boom. The market is pretty well insulated from fluctuation based on the economic drivers. The biggest opportunity here is low income housing/affordable housing as we are getting million dollar neighborhoods pop up every week. Some properties that I have been involved in had 50% lift in 7 years so selling a rental you bought 4 years ago makes sense to free up capital. 

Depending on where you are 200k seems super light. There are so few houses sub 250k and those are going under contract within days. Again location matters, not every part of Charlotte has grown but you can absolutely push price and if your agent says differently i would get a second opinion. Right now purchase money on a 30 year loan is under 3%...that is unheard of. You can argue that the lowest rates in history will support increase in sale price purely because one can afford more house. 

@Steven Macdonald That is feasible, obviously there will be some other factors but not outrageous of an ask. I think your biggest issue will be location. Some counties/states are not issuing permits or scheduling inspections making it impossible to get permits in a timely fashion and you will need to plan for that. Ultimately you will be in a short term loan so your planning is vital. 

@Geetha R. Send me a PM and we can talk about options available for a blanket/portfolio loan.

@Vince Claudio are you only looking in Charlotte or other NC markets as well. 

You can find websites or people who will skiptrace for a few buck per name/address. I have also seen services like this offered on fiver. 

Hi @Geetha R. What you are seeing can be typical. In the Charlotte market I am see 20-25% down for investors with good experience and buying right, but cash-out across the board has been limited to 60-65% LTV and in some cases the lender will request additional funds held at closing to cover some payments. I would suggest you do a blanket loan and if you have more than 1 rental to access all the equity at once.

I agree with @Eric Johnson you will need to wait until liquidity is restored and some confidence regained, it is my belief the compression stays for a while possible through to the end of the year. While markets are getting better are areas reopen this is a global economic concern not a local one so the correction time will take longer than expected. 

There are definitely still lenders out there offering long term loan options but rates have increased rough 250+bps from what was quoted 2 months ago. Keep in mind some lenders are not lending in all states, for example, I do not lend in OH or WI. 

@Steven Macdonald to clarify you own a property already and want to pull out equity to rehab the property? You can do a refinance and do that, in some cases, I have even offered a refi with additional funds for rehabbing the property. It all depends on scope of work and the asset itself. 

Hey @Yashank Choksi, I know I am late to the party but I hope I can add a different perspective. I agree with a lot of information that was stated here -Location, cost of living, personal situation (family or individual) - all play a role into which way people will steer when looking at potential rentals. 

If we look at trends and newly identified behaviors based on the current pandemic I think the tides will sway a little more in favor for a SFR or garden style apartment for the foreseeable future. Because many states have active shelter in place orders, we are seeing that people are really looking into the space they rent. New renters are wanting space, optional room to telecommute (this can be a new standard feature as it has forced the workforce to learn to work remote), yard and some amenities that you can use on your own without the worry of others being around such as, grills, patios, in-home gyms...all things that apartment living usually offer as an amenity since the smaller floor plans and no yard do not allow you the freedom of bringing those features inside your place for private use.

As a lender, I know plenty of people who invest in both strategies (Multifamily properties and SFR portfolios) and they have seen a greater interest in the SFR space vs the MF apartment space. In addition, the tenants tend to sign longer term leases or stay for a longer term reducing the cost of lease up, punch list or marketing when you started 12-18 month apartment lease is up for renewal. You can also charge a premium for SFR is prime neighborhoods allowing you to offset the increase operating/maintenance cost of not having all your tenants in one building.

No option is wrong but you should digest what the current rental market is projecting for your area and account for all costs associated with each. 

Happy to answer any other questions and hopefully this gives you some additional insight to make the best decision for you.