All Forum Posts by: Jon Kelly

@Paul K. McCoy I don't understand what your concern is. Seems like you're asking two different things: 

1. Any issues waiving an appraisal when you purchase? As @Account Closed mentioned investors do this all the time. Typically you'd like to at least run through the property with an agent or contractor that can point out major red flags. If you don't have someone you trust walk through the property AND you waive the inspection just understand you're taking a risk. Nothing wrong with it, but the purchase price needs to be adjusted accordingly. 

2. Will you run into issues on a future buyer's appraisal? Of course this can happen. If a future buyer orders an appraisal and they find mold, leaking roof, crack in the foundation then you will be in some trouble... 

@Salvatore Lentini 1-4 units and portfolio loans low to mid 6s. Multi-family 5-8 units low to mid 7s. 

Reach out when you are close to your next opportunity. 

I have close friends that just moved to Doylestown :) 

@Quentin Lester It's definitely possible, but just know you are taking a lot of risk and the purchase price should reflect that. 

You have to put A LOT of trust in your "team" on the ground. Have a great relationship with your agent and contractor. 

Roc Capital offers dscr loans and lends in 46 states. 

@Justin McIntyre it's just like any good relationship, you need to have great communication and understand each other. 

I would start with looking at fees / terms but then have at least 1 conversation (maybe 2-3) with your top choices. For your first property manager you may not want to choose the lowest price option. 

You want to know their pricing, experience (how many investors do they work with, how many units, are they investors, how long have they been property managers, etc.) and location (what area(s) do they manage) 

@Salvatore Lentini Roc Capital. Our floor on fix-and-flips is still 8%. That's why it's best to come as close to the money as possible. Cheaper rates and faster process. 

We're all in the same boat with rates going up... hopefully these next rate hikes are already priced in 

@Deborah Fung sorry for your loss. It's great you're taking initiative to secure your financial future. Being afraid is common and it usually comes from lack of knowledge or experience. So, you're starting off on the right foot by reaching out for guidance. Regarding your 3 questions: 

1. You should be able to secure lending through your SSI. If not you can always work with a private lender. I work for a private lender if you need one. Private lending is usually more expensive than conventional, but we focus more on the performance of the property and less on the investor. 

2. Rent should cover the mortgage, depending on how much you pull out

3. Connect with a local real estate agent or investor. Try to learn from them on how they analyze deals. BiggerPockets also hosts weekly webinars (I believe on Wednesday) geared toward helping new investors analyze deals. 

@Steven Barr this is entirely dependent on your goals and lifestyle. 

Are you still in growth mode? Then live off 0% of your cashflow.

Are you hoping to keep it steady? Then live off 50% of your cashflow. 

Are you planning to become an instagram "influencer" and showcase your millions? Then live off 100% of your cashflow and buy a multi-million dollar house, travel the world and buy a private jet. 

For me personally, I'm not touching my cashflow until I secure consistent financing for my next property(ies) 

@Christian Loya I'll send you a dm

@Edmund Isas congrats on getting started and your success so far! This is a great example of "when there's a will there's a way." A lot of people are scared to take on debt, but if you buy right it can be a powerful tool.

Sounds like a dscr loan would be a great option for you. DSCR loans are more expensive then traditional "fannie & freddie" loans, but the underwriting focuses much more on the property and less on the individual.

My company is a nation wide private lender. We offer bridge and term loans. We can definitely help with refinancing the $800k property and also fund your next fix-and-flip (or fix-and-hold). We offer 80-90% on the purchase depending on experience and 100% of the rehab.