All Forum Posts by: Hamid Sedaghat

I am wondering if the BP community has experience to compare and contrast the costs and processes for AirBNB, VRBO, and HomeAway? Are there other services people use?

I have used local vacation property managers in the past and want to decrease my vacancy rates using the most cost effective platform with the smoothest processes/best experience for my guests.

@Aaron Cook Hi Aaron, I do. However, the underwriting has changed to lower LTV post-COVID.

In addition to the points made regarding quick closes, ability to leverage to complete more projects, and acquire financing when banks will not offer it, from my experience good Hard Money can streamline and scale your process as an investor. If you can rely on your Hard Money Lender understanding your business and needs, and deliver consistent, fast closings it will make scaling much easier. Much like having good contractors, wholesalers, real estate agents, and other professionals in the industry, and Hard Money Lender who you have a good working relationship with can go a long way (and it should drive costs down the more you work with us)!

@Paul Papamarkos the vast majority of investors we work with borrow through entities and we have done this for years, but we can lend to individuals as well. It is true it can vary from lender to lender.

As a hard money lender, I can work with other lenders who are willing to take a 2nd position loan. This can be a way to cover some or all of the down payment while using reliable hard money.

@Dion Longo Closing 03/23 won't be a problem, but you'll likely want to get moving to explore your options and get a title search going! I've left you a message, as I am a local HML and I've worked on 100+ foreclosures/purchases with 1-2 week turnaround times to close in the last 6 months.

Working with a lender who is open to working with second positions is a good way. I have done this in originating a 90% purchase price loan in which the remaining 10% is financed from another lender. This lender could be the seller (seller financing), a private money lender/individual, or another lender who has advertised their desire to take 2nd position loans (although this 2nd position will likely be more expensive).

Thanks for sharing Tamara! My long term hard money Cash-Out Refi experiences involve appraisals after the renovation is complete in which the loan is 75-80% LTV based on the newly appraised as-is value (as long as the property is cash flowing at that loan amount). The restrictions would be that the properties must be urban/suburban properties that are able to comp (at least 3 sales within 3 miles within the last year).

If these parameters have held true I have not ran into difficulty, regardless of the borrower's entry position. Having realistic estimates for ARV (or as-is if you're referring to once the project is complete) has been one of the largest factors to successfully executing the BRRRR strategy from the refinance perspective.

As others have alluded to, I think it is a good idea get all of your team in place so you can confidently move on properties as they arise with as accurate of budgets as possible. Give yourself realistic estimates. Build your network of buyers and other avenues to acquire properties, so you can have options to know which deals offer greater profit or better suit your goals. Your experience with rentals will only help you if you want to refinance and hold onto it long term, as you likely know what it takes and what the returns look like for a property in a given area.

@John Anderson I’m not sure how much success you will have with a Hard Money Lender taking a second position on a 30 year loan, but if you have good equity in your purchase price you could have more luck. Also, you should look to ensure that the primary lender will allow the second position with the terms you are seeking. Many will only allow a second position note that has a maturity date on or after the maturity date of their note.