All Forum Posts by: Justin R.

That area is 6 percent. Although most areas split commission, some brokerages in that area are doing 60/40 splits. Factor 8 percent sellers closing cost in to your planning.

@Shiloh Lundahl Yes. When we experience the next downturn, the get gentrified inner cities will flock back to stabilized suburbs with quality schools... in addition, there will always be a demand for families in good public school districts

@Chris Mason & @Kevin Romines Great job summing up the two methods. Each time I apply for a new loan I try and deal with loan officers who are familiar with both types. All too often, weeks (or even months) into a loan process the underwriter comes back and disapproves due to using a different formula (or brining in a new metric that was not mentioned at loan initiation) such as global DSCI, etc.

Also, many lenders wrongly sum your Capex and maintenance costs, therefor a full rehab appears as an ongoing expense. I wish all lenders conducting investor loans had some form of investor based experience. Most are not as savvy as the guys here on BP.

I don't understand why people say "you can't use a cap rate on SFD's." Sure you can, and it works great for comparing apples to apples. We all know that appraisals for 1-4 units are based upon comparables, not cap rate; but this doesn't mean it cannot be used as your personal underwriting tool.

It is simple to get two different cap rates....especially when one is prepared by a listing agent, wholesaler or the like. People encouraging a sale exaggerate the income, and minimize the expenses. This is done by no maintenance/Capex reserve, no vacancy reserve, not factoring in PM fees, etc.

The most important thing is to know how to analyze a property. There are many ways to do it, but make sure you are confident, and competent in the method you choose!!

Best of luck!

@Jeff Kehl Springfield GA, which is about 40 min from Savannah.

If you have any contracts please let me know. Like I mentioned, the ones I've used in the pay no longer seem to have desire lending to OOS investors.

Thanks for reaching out

Thanks Anthony. I called and US Bank requires both the subject property, as well as the borrower to be in their "area of operation." Unfortunately they do not operate in GA. Thanks for the suggestion though!

 I don't recall calling that one. I met up with Renansant Bank (whole I had a previous relationship with), Farmers/Merchants, Heritage, and Citizens banks

 I sent them a request. Thanks!

@Nicholas Covington I'm not seeing a PM, you mind sending again please

@Greg Scully @Greg Dickerson thanks for the input. I've reached out to 6-7 local banks/credit unions and either they weren't interested in lending to an out of state based investor (even though property is local) or they said there apartment lending has been maximized and they are not interested in conducting further apartment loans.

One said if I opened an in state LLC (GA), created an account with them, and conducted all banking with them they would be "open" to it. I asked if they meant just accounting for the subject property, but they want all banking which is just not feasible.