All Forum Posts by: Dustin Tucker

I think we are almost at the point where we will see a lot more investment activity, we are the calm before the storm as the everything bubble pops in the next 6 months. If you can buy and hold, you will make money in the next 3-5 years, even though you may have a temporary negative equity experence. Unless you are in one of the exceptional markets with a 1 of a kind property I would recommend doing any flip that remotely approaches 70% LTV, I am seeing a lot of 60% LTV projects, those investors with make money. At our company we saw interest rates drop .5% this week as our rates are based on the 5 year treasury, which was pushed down to 3.6% this week. I think we are at the point, where labor costs are actually going down as most of the labor relies on big national builder's for their work, and with home sales slowing down, we are seeing labor rates competing for work, which is driving down the costs.

I do Bridge loans up to 70% LTV, if you have them rented out, we can go up to 75% LTV but you need a 720+ Fico, and we 80% LTV purchase loans. Send me an email with more details, and I can let you know what we can do.

Thanks,

Hello Stan,

We all have dreams/goals, and without those we can't accomplish them, and go to join the rat race.

1. Most important is to find the best deal possible, if you find a great deal there are always partners for that project.

2. You need to have enough money, probably in the $100-150k, amount to put the property under contract, and do the feasibility study on the property, Phase 1 Environmental, Property Drawings for roads, water sewer, and utilities, and have a completed budget so you know what your costs are.

At that point you can go out and attract investors, I don't thing that developing raw land is necessarily cheaper than buying discounted finished lots.  Completed lots with Concrete roads, and water and sewer are costing more than $70,000 per acre in development cost, and are yielding 3 lots per acre, Combine development cost with prime land acquisition cost of $70k/acre, and your lot cost is over $45k/lot.

My recommendations for you, 

1. Get your real estate license, this way you have the tools to evaluate properties.

2. Get a job brokering land deals, this way you get paid for what you want to do.

3. Start investing in cash flowing properties, like duplexes, triplexes and quadplexes.

Thanks,

Dustin

Use the public records for your offer, and negotiate hard, I would add in the special provisions that offer price is based on $x/sq.ft if the house is smaller than the listed sq.ft the price will be adjusted based on the sq.ft.  I wouldn't say anything about the house being larger, then if it is, then that's in your favor.

I'm not local but we lend nationwide, 11.99% and 2 points, let me know what you are looking for.

The question is do you think its a good deal.

Did you get a property inspection?

How old are the main mechanical systems HVAC, Water heater, Boiler?

Are you paying cash for the unit? If you are paying more than 7% on your loan you are losing money on a 7% cap rate transaction.

I think you should look at this a little different.

1. With a new roof, and new mechanical systems, you shouldn't have any problems for the next 10 years, and if you do they should be covered by insurance.

2. Why would you pay 10% gross to a management company, that is $260/mo, use zillow, they have the tenant screening and 80% of the leads come from zillow any ways.

3. Get the 2nd unit leased before you purchase the property, once you are under contract, you can advertise the property for lease.

If you can direct message me I can get you a rental rate quote, most of my rental loans are in the mid 6% rate currently.

Thanks,

Dustin

Hello Kristine,

You would have to read your lease to answer the questions, I would imagine on a lease moving out early they would still be liable for the remaining portion of the lease.  Its up to you how you handle it.

Have you looked at refinancing your current rentals to purchase more properties? I think that we are in one of the best buyer's markets in the last 20 years. I'm not sure if you are familiar with DSCR loans, esentially, we are taking the cash flow of the property, plus your investor expeirence and giving out 30 year fixed rate mortgages. Our best rates are 5.3%, with most of our rates between 6.5-6.8%. Let me know if you would like a quote. Thanks,

Dustin

I think that zillow currently has 80% of the market, Apartments.com is also good, and homes.com has spent Millions on advertising recently.  I don't think it costs anything to list on zillow.  You may want to shop your competition, and check the market.

Hello Ryan,

Why don't you look at the Duplex market in Green Bay, Appleton, or Oshkosh? I would stay away from Manufactured housing, unless you are thinking about owning a Mobile Home Park, even then financing is hard to come by.

The easiest properties to finance right now are 1-4 unit single family properties. So that included Duplex, Triplex, and Quadplex Properties.  The rates on Rental Loans are under 7% for the most part, and if you have a low loan to value, you can get rates sub 6%.  We are currently only doing soft credit checks on our loans, which allows you to do more loans.  If you have a property you are interested in, send it to me and I will get you a term sheet same day.