All Forum Posts by: Jordan Ray

@David M. - I would prefer not to tap into my equity. From what I gathered and read about portfolio loans was that it isn’t sold to the secondary market plus the rental income could be used to determine how much I can qualify for? Perhaps I misunderstood. 

With a conventional loan, I have to put down 20% which isn’t the issue. I am just trying to figure out what loans would work with my situation. 

@Jordan Ray - doing a BRRR is not conducive with my family as I have kids and moving them is away from their friends is highly unlikely. But if I were in a different situation, this would be something I could do.

I have been talking to a few agents/investors on here prior to the holidays but now I’m back at gathering more info before I rip the cord and make my first purchase. 

Hi!! I am just starting out and looking to invest in Memphis. I have been talking with Dean Harris & Taz. I need to reconnect as the holidays were crazy. That being said, I want to start out conservatively as I will be a long-distance landlord. I currently reside in South OC (SoCal) and own my house. I am looking out of state because I do not want to be a landlord here as it is  expensive and not landlord friendly. 

My question is…should I get a Portfolio Loan as I would refinance in a year or so? I would not want to tap into my equity in my house, 401k or my savings. I guess this would be coined as creative financing? What are the disadvantages? Advantages? 

Also, could I take a portfolio Loan on a second home? 
any advice and/or suggestions  are welcome. 

Thanks! 

Assuming loan is 70% of ARV (that's 100% of purchase + 100% of rehab), and it takes you 6 months to complete, and terms are, as you said, 5pts and 13%:

Loan = 70% x ARV

Loan cost = 5% x Loan + (13%/2) x Loan

I would avoid going for 100 & 100 if 5 points.. As a lender, we do 90 & 100 - but only 2 points, it's going to balance out better in my opinion. 

So 70% Loan To Value (Max) and 90% of Purchase and 100% of Rehab.

Let's say your ARV is $300,000 and your purchase is $170,000 and your rehab is $60,000

Initial loan (90% of Purchase) = $153,000

Rehab (100%) = $60,000

Total Loan = $213,000 requested. 

70% MAX of $300,000 = $210,000 - So we would adjust the loan to this. 

Assuming loan is 70% of ARV (that's 100% of purchase + 100% of rehab), and it takes you 6 months to complete, and terms are, as you said, 5pts and 13%:

Loan = 70% x ARV

Loan cost = 5% x Loan + (13%/2) x Loan

60 of the 100 largest U.S. cities now negative rent growth, according to Apartment List.

Here's the list:

1. Oakland, CA -9.3%
2. Huntsville, AL -5.7%
3. Atlanta, GA -5.6%
4. Austin, TX -5.4%
5. Portland, OR -5.4%
6. St. Louis, MO -5.4%
7. San Francisco, CA -5.2%
8. Phoenix, AZ -5.0%
9. Boise, ID -4.9%
10. Reno, NV -4.6%
11. Corpus Christi, TX -4.5%
12. Long Beach, CA -4.3%
13. Orlando, FL -4.3%
14. Jacksonville, FL -4.2%
15. Nashville, TN -4.2%
16. Raleigh, NC -4.0%
17. Los Angeles, CA -3.8%
18. Irving, TX -3.7%
19. Mesa, AZ -3.7%
20. Gilbert, AZ -3.6%
21. Chandler, AZ -3.5%
22. Glendale, AZ -3.5%
23. Sacramento, CA -3.3%
24. Colorado Springs, CO -3.3%
25. San Antonio, TX -3.1%
26. Scottsdale, AZ -3.0%
27. Plano, TX -2.7%
28. Fort Worth, TX -2.7%
29. Riverside, CA -2.5%
30. Charlotte, NC -2.5%
31. San Diego, CA -2.4%
32. Dallas, TX -2.0%
33. Tacoma, WA -1.8%
34. Fremont, CA -1.8%
35. Yonkers, NY -1.7%
36. Cleveland, OH -1.7%
37. Miami, FL -1.6%
38. Spring Valley, NV -1.6%
39. North Las Vegas, NV -1.5%
40. Richmond, VA -1.5%
41. Las Vegas, NV -1.4%
42. San Jose, CA -1.1%
43. Denver, CO -1.1%
44. St. Petersburg, FL -1.1%
45. Pittsburgh, PA -1.0%
46. Des Moines, IA -0.9%
47. New Orleans, LA -0.9%
48. St. Paul, MN -0.9%
49. Albuquerque, NM -0.8%
50. Durham, NC -0.7%
51. Henderson, NV -0.5%
52. Houston, TX -0.5%
53. Memphis, TN -0.5%
54. Chula Vista, CA -0.5%
55. Seattle, WA -0.5%
56. Tampa, FL -0.4%
57. Winston-Salem, NC -0.4%
58. Minneapolis, MN -0.3%
59. Columbus, OH -0.2%
60. Enterprise, NV -0.1%

In 2023, many cities that saw rents skyrocket early in the pandemic are cheaper today than they were one year ago, according to Apartment List.

I thought this was an interesting article. Here is the link to the article if anyone wants to read. 

@Jordan Ray Feel free to reach out anytime sir!