All Forum Posts by: Jamie Spitale

lol. Thanks for the hunting and fishing metaphor. I know exactly what i want. Just in the first stages of figuring out how to get it and learning the industry.  My question may have been dumb but at least i know now what the answer is.  It's a learning process and as time goes on I'll learn more before my first deal.  Thanks for your input. 

from what i have been reading all over the net it sounds like a wise choice to ask for rental insurance when renting especially to lower income renters. 

My questions are:

1) what if they let the insurance lapse?  What are my options?

2) what if they move out and have caused tons of damage can i make a claim on the renters insurance?

@stevenpatras listen in 

 Thank you very much.  Any advice on where to stay out of in Atlanta?

My name is Jamie and I currently live in Sacramento, Ca but moving to Georgia in about a year.  New to the game and have partnered up with a very good friend of mine and old business partner.  We are looking to do some flips but mainly buy and hold.  Flips more in CA and rentals more in GA.  Any and all advice is wanted.  In the research phase and looking for lenders etc.

scenario:

Let's say I find a home valued at 100k and the seller is asking 65k to purchase the property.

This 35%LTV right?

If I am correct and I find a lender who requires 25-35% LTV to fund the loan will the lender fund it with no money out of my pocket? Or do they usually want you to put in 25-35% of the actual loan?

I know lenders require different things but as a general rule is all I am asking.  This will help me to decide to jump in now or in a few months.  

So as for the OPs question since the deal is around 30% LTV would he need to put down any of his own money on the loan?

I was wondering the same thing. Do lenders want you to put down 20% of the loan or put down enough to bring the LTV to their requirements of whatever number they want?

 We are looking at having 40 homes in 2-3 years and the traditional route will limit our chances of doing this. 

 Ok. Makes sense. I was confused because we approached a lender and he sent us a proforma on the houses we want and put the mortgage payment as interest only at 10%

Is this common wowiwith these types of lenders?

I have what might seem like a dumb question to most but I am a little confused and having a discussion about this with my my business partner.  A little back ground, we both have owned businesses and now want to venture together into real estate.  I am brqnd new and he has some family history in rentals.

1) What is a portfolio lender exactly?  

(I have a basic understanding of what they do as far as not selling the loan on the secondary market.)

2)When I think portfolio I think of being similar to the wall street. Mutual funds stocks etc.  I buy part of your company and hope to make a return.  My question is do portfolio lenders do the same?  They give you lets say 100k to buy 4 properties and you give them 10% back on their money every year and you never pay the house off.  it just stays in the portfolio until you sell the house etc. Can you pay off these type of lenders?  Can you pay them off early to save on interest?

I am sure I am over thinking this but I like to know what I am doing before I do it.  We are in the research stage and have quite a bit of money to invest and looking for different ways to make it happen.