All Forum Posts by: Justin R.

Im currently under contract on a 16 unit apartment in Georgia. I have been in the process with Wells Fargo and just started having issues (30 days into contract) with their underwriting department. I would have loved to obtain Fannie Mae Financing, but I am just under the minimum limit (700k loan.) If I have to, I will use a short term lending program to obtain the property, and then refinance out in a year or two. I was hoping to get locked in off the get go with quality long term financing though so I don't have to worry about rates and prepayment expenses.

If anyone can suggest a lender whom lends on sub $750k apartment loans, please let me know. Thank you!!

Hello All! I am looking for an upscale property management company in the Laguna Beach area. If anyone can suggest one, with a specialty in either short term or long term, that would be greatly appreciated. Thank you!!

Interesting article, and great website (Ive never seen it before.) Thanks for sharing!

Hello!

How quick can you close?

Which way to share supporting documents (Google drive, email, dropbox, etc)

Types of loans available (terms, maturity, etc)

Interest rate

Points for various rates

Do you offer a floating lock (adjustment if rates decrease)

Closing costs (brokers fee?, origination fee)

Prepayment penalty?

If its a small bank do they have any special requirements (open a checking act, keeping money local, etc)

Communication process

First of all Congratulations!!! You completed the first, and hardest step....Buying the first!! In the future, you may want to run numbers a bit more conservatively if you really want to scale. Without accounting for capital expense, maintenance, property management (even if you manage, if you want to scale this will come one day), legal/accounting fees

I like your plan of pooling other passive investors. Its a great way to increase your growth, while helping others invest with a higher return than money in the bank. Keep it up!

ROI is the return based upon purchase price (and rehab.)

Cash on Cash return is based up a return of YOUR money in the game. 

This differs when you are bringing in leverage, as your mortgage reduces your NOI after debt. In addition, you're not fronting 100 percent of the costs, only your down payment + rehab + closing + holding.

@Bill Plymouth I would first take a look at your goals. Are you looking for cash flow, high appreciation, or a combination of both? One you determine this, you can choose your market, neighborhood, and asset with clarity.

Also, as home values and gross rents increase, the one percent ratio becomes less critical. For example, A roof on a 500k home most likely won't cost ten times the amount of a 50k home. Use 1 percent as a rule of thumb, and then begin your analyses.

Hello @Mitchell Litam

From my experience with section 8 vs non section-8 in the exact same asset class. Please understand this is using VERY broad generalizations.

Section 8 tenants - guaranteed (nearly) income, increased gross rental amount compared to a non 8 comparable, entitled tenants, regular inspections (not necessarly a bad thing), tenants harder on the units.

Again, this is a generalization and you can definitely have a great section 8 tenant as well. I would consider section 8 a niche, and some people make a lot of money with section 8 investments.

Yes, Increase risk

Yes, you should connect with @Amanda Han to see if her services are something that you could benefit from.

On another note, If that doesn't work out don't limit yourself to your local.