All Forum Posts by: Dustin Lauer

The market is always changing.  I care a lot about the construction costs, the lifeline of the assets' major components (roof, hvac, elec, plum, foundation/structure etc.), and it's ability to cash flow over debt service (if any).  There is no doubt that there are a massive amount of renters in the U.S. already, and I would propose that in the event of any economic worsening, it is reasonable to assume that will produce a greater percentage of renters to homeowners... So I like the reasonably affordable $900-1400 / month rental property, that can cash flow some, and should be able to last in the long haul (or at least be sound enough that other investors would want the asset for the income and condition later).

I would say research around on BP and find your financing options, but wait to get pre-approved. Then find the first deals and get them under contract prior to allowing credit inquiries.  I would try first working with your best fit Lender, and hopefully this lender can pre-approve your deal without a credit inquiry at all, or at least until they are ready to underwrite your file.  Welcome to BP.  It is an awesome resource.  I'm still new myself, and I am finding it more and more useful.

@Dmitriy Fomichenko  When can I get on that list of non-recourse lenders?  Most of my files are non-recourse.  What information do you need from me?

@John Thedford I don't know if pre-payment penalties count!  Just like you said it is not required of the borrower to payoff, so I'm not sure.... All I know is I don't like being in any "interpretable area of a law"  I personally don't ever use pre-pay penalties.  I do this more so to incentive payoff, valuing the velocity, security and liquidity over the overall yield earned.  Some rental lenders have crazy high pre-payment penalties akin to skyscraper financing.  Many rental lenders have either 10 year, 5 year, or 3 year step down pre-payment penalties lowering by 1% per year.  To my knowledge some lenders require loans or blankets of loans to be over $500K+ in Florida to avoid usurious rates charged.  Statue source (disclosure I'm not an attorney or accountant)  http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0600-0699/0687/Sections/0687.02.html    

It may be true for the ultra wealthy that RE was not their path to wealth, but for millionaires which is the new middle class RE is still a lion share of their paths to wealth.

I like Orlando and Indianapolis more and more lately for rentals.

Here's some of the factors I'd add into your search :  employment,  earnings much higher than the cost to own a home.  Property taxes.  Hazard insurance costs.  Age of asset.  Construction quality of Asset.  

@Mark McCutcheon

I see you already have some financing lined up, but if I were to fund 70% of the finished value for you or a buyer of yours on this deal, would that be helpful for you?  I checked into this deal and ran rentfaxpro.com report on the location.  It is one I would finance.  Good schools, education levels, good crime rates, good income levels, occupancy rates, <7% vacancy etc.  Looks like a solid area!

What attorney's office do you close with in Chicago by the way?

(closing date is fine if I started working this this yet this week).

@James Harris 100% financing is not uncommon, but to answer your question point blank, yes most lenders will have a minimum loan amount and most lenders will require a higher percentage down on smaller loans.  Lenders, like myself, are looking at amounts $ of equity on smaller deals. 10% down on a $800,000 buy is a nice slice of equity, but 10% down on a $40,000 house is not enough (in fact it might be less than the cost to foreclose on a defaulted loan).

I personally don't do 100% financing ever, like most other lenders, because skin ($) in the game tends to equal loan performance.   (And because history tends to repeat itself!)

This looks great.  I've love to finance for any investor (or you if you want to take it down yourself).  I don't know if this will work, but I wrote up a whole loan pre-approval for you on this deal and I am going to try to insert a dropbox link below for it.  If not please email me and I can reply with it and everything needed to close a loan.  

ACTUAL LOAN PRE-APPROVAL

LOAN APP

Congrats on your recent acquisitions.  I would recommend Oz Accommodations. http://www.aplacelikehome.com/

I myself am a local investment property lender, but I am actually interested personally in acquiring some smaller multifamily in Overland Park.  Thankfully our area has some pretty good property managers.  

Also there should be some property management at this upcoming event in town if it is not sold out yet.  Worst case you get to have some good beer.  http://www.eventbrite.com/e/think-realty-happy-hour-tickets-25412409200