All Forum Posts by: Mike Davis
Mike Davis has started 1 posts and replied 143 times.
Post: Key Indicators in Analyzing Rental Properties

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Paul Veronis the best suggestion I can give would be to connect with investors that are already investing in the market you are in, ask them what returns they are looking for. This will give you the most accurate measure of your current market.
Post: When during a BRRRR should a contractor give me an estimate?

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Michael Mackney also, there are a lot of great resources online that give you suggestions on estimating basic repairs to a property. Remember to estimate on the higher end, because the cost of building materials are much higher right now. If this is your first deal, I would however get a GC and walk through with him/her and have them explain what they look for. For turning the GC into a "teacher" maybe a nice gift card like @David Avery suggested. After a few of these you will be able to do it mostly yourself.
Post: Appraisal outcomes are messing up the BRRRR strategy, Why?!

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Cory Howes that stinks having to deal with that. I definitely don't know your market area, could you possibly be rehabbing the properties too much for the market they are located in?
Post: How to grow a real estate brokerage.

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Pamela Joveski before I sold my brokerage, when I started, I found myself trying to compete with the big dogs that had big budgets. My success was going after the more seasoned agents that produced on a regular basis. I provided the office basics (phone, paper, files, etc) and a flat fee of $500/month and 95-100% commission.
The key success in this model is to track expenses...each agent gets a login for printing copies to keep the abuse to a minimum etc. Also, you have to go after the high producing agents where the $500 is a drop in the bucket and you don't have to turn into a debt collecting agency.
All the perks you offer will bring agents, however you don't wan the agents that make one sale and you don't see them until next month. Good Luck!
Post: How to become a Rookie rockstar?

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Israel Jimenez my friend I would say you have reached that pinnacle with what you are currently doing! That is awesome!
Post: Here's what I (Ashley Hamilton Podcast #331 Guest) been up to!!!!

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Ashley Hamilton that is real putting the effort out there, great job!
Post: LLC for rental properties

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Nicholas Mann, @Joe Homs and @Megan Templeton are spot on! I use a virtual mailbox with ipostal1, it is 9.99/month.
Post: Utilities when Marketing Rental -HELP!

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Joseph Escamilla this is on a different note, but still worth thinking about. You have a triplex, two tenants pay gas and one paying electric. In todays environment, those paying the gas price, might be getting shelled and paying the same rent the tenant with electricity. Also, tenants will talk.
Post: How to Become Commercial Mortgage Broker

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
@Sneh Lathiya you can reach out to me directly nd I can discuss with you what I know. Good Luck!
Post: How to choose lenders

- Lender
- Annapolis, MD
- Posts 154
- Votes 70
Quote from @Ken Vesely:
@Shirin Nam great question.
First thing you should do is make sure that lender is actually a lender, ask them to see HUD's from recent closings (yes some lenders will send them but with the borrowers name crossed out and the prop address crossed out) but you should be able to see the date, amount funded and youll know they are actively funding loans.
Next, ask for referrals, we get that request all the time and I have no issue giving out names/numbers of borrowers that I close loans for as that is my best form of advertising, a satisfied borrower.
Red flags to watch out for
1. asking for money upfront! The only thing you should be paying for upfront is an appraisal and to the appraisal company directly. If you get asked for a "deposit" paid to the "lender" directly, run
2. Being asked to sign a "fee agreement" - lenders don't use fee agreements, brokers do
3. Not being able to get you loan terms on your 1st call! This is a big one, this is how you can figure out who is a lender and who isn't.
Hope this helps, reach out if you want to discuss further
@Shirin Namavar what @Ken Vesely stated above, some was good advice. However, I as a broker can offer options to my clients and I am able to offer more options than a lender. Whereas a lender is pigeon-holed to only certain programs.
There are advantages in working with lenders and working with brokers, depending on the situation. Good Luck!