All Forum Posts by: Dan K.

Hi BP'ers - 

Do any veterans have advice for a fellow BP'er who is approaching/working with private investors for the first time?  

Over the last 1.5 years I've purchased nine rental properties (mostly through hard money loans) and completed one flip.   Now that friends/colleagues have heard about the real estate work that I'm doing, some are starting to approach me and ask how they could get involved - exciting! 

I'd like to try working with a colleague this month on a smaller deal (I have a pretty safe single family rental that I'd like to finance, rehab, rent, and refi)  and see if they are interested in lending on some of my rehab projects (and then refinancing to pay off their investment).

Do any BP experts have advice on how to approach those first few deals? Any suggestions on the nuts and bolts (contracts, how you structured deal, what % rate of return you offered) and how you managed the relationship to help the investor feel comfortable?

Thanks in advance for any thoughts or suggestions.

Dan

Hi BP'ers - 

Do any veterans have advice for a fellow BP'er who is approaching/working with private investors for the first time?  

Over the last 1.5 years I've purchased nine rental properties (mostly through hard money loans) and completed one flip.   Now that friends/colleagues have heard about the real estate work that I'm doing, some are starting to approach me and ask how they could get involved - exciting! 

I'd like to try working with a colleague this month on a smaller deal (I have a pretty safe single family rental that I'd like to finance, rehab, rent, and refi)  and see if they are interested in lending on some of my rehab projects (and then refinancing to pay off their investment).

Do any BP experts have advice on how to approach those first few deals? Any suggestions on the nuts and bolts (contracts, how you structured deal, what % rate of return you offered) and how you managed the relationship to help the investor feel comfortable?

Thanks in advance for any thoughts or suggestions.

Dan

 Thanks Dan! The lender was trying to tell me that this doesn't apply to commercial mortgages, and that it doesn't apply to short form appraisals (only full appraisals). Does that make any sense to you?

Hey BP - I'm scheduled to close on a refinance tomorrow  Just a few hours before close of business today, the lender threw me a curveball and gave me a different refinance amount, telling me that I have to bring cash to the closing table to refinance - something I have no interest in doing.  

They also claim that I can't transfer the appraisal to another lender because its a short form appraisal.  

Does anyone have advice on how to do this with another lender without having to pay a new lender for another appraisal?

 Sent you a message, thank you!

 Thanks Sawyer - I do know Kim and I tried to do a project with her awhile back, but will definitely be looking elsewhere.  I've connected with a few potential leanders already off of BP (thank you everyone).  If you or your clients want some more options for people who will these refinances, happy to share some info on these folks.  Just PM me here if I can help.

 Thanks Travis! Sent you a PM.

Hey I didn't end up trying! I'm looking at another property where this might be and issue and hope to give it a shot. I have friends that have these but nobody in the US. I wonder how US tenants would feel about these, or if they are a little too different.

I'm an aggressive BRRR investor in Minneapolis who has been buying one property a month.... and I want to do more.

I've met some great hard money lenders and have a good group of people that I work with locally.

But I haven't met a reliable mortgage broker that does non seasoning refinances in Minnesota.  

I am looking hard to find lenders who:

-Offer no seasoning refinances.
-Note: I am NOT looking for cash out. 
-Lend on 70% LTV. Not 70% LTC.
-Will use leases to document rental income (note: most of my rental income won't be on my taxes as I purchased my rental properties this next year)

If I can find a lender that can do these refinances reliably, I will likely have 1-2 of these refinances each month. 

Please message me if you want to talk more!

Dan

I've got my eye on a great duplex in Minneapolis. The property is listed at $85k, needs about $6k in cosmetic rehab, and is just down the block from a property I recently purchased (with hard money/private money), and appraised at $135k.  

One rented, this property should rent for $1600/mo.  I plan to refinance and rent.

I work with some great hard money lenders and am always looking to meet more.  My favorite lender does not lend on occupied property - I would want to rehab and get this one rented quickly, so I would 

I've been paying 5.0 points and 13-14% interest on hard money loans.  I would love to get this down to 4.0-4.5 points, and would rather go higher on interest if I can go lower on points.  Six months term would be more than enough (three months would be fine if a funder wanted to get in and out quickly).  

This would be my fifth project with hard money/private money.  I've delivered on all the projects and rehabbed quickly.

If there are any private investors or hard money lenders that would be interested in this, please let me know!