All Forum Posts by: Keith C.

Investment opportunity- quadplex outside Lakeland FL , a few miles to AmaZon logistic center

A Concrete block quadplex located right outside Lakeland FL This is a rare opportunity to buy four units for 50k each , each unit should rent for $850 —

The property consists of four identical 2/1s. This will be by far the cheapest Quadplex sale in the area. New roof just put on in 2018. This cash cow will be a great investment for years to come. Don't miss out!

Rehab:

The property will need a full cosmetic upgrade inside. The area does not call for high-end finishes, especially for a rental property.

Management available

Contact me for NDA and further details

IF you provide  the lender with documentation such as comps or notate where  the report is inaccurate or is missing key info the lender will go back to appraisal company or  may request a second appraisal. I had an appraisal under value a QuadPlex by over $120k , some appraisers are out of their league ,,, The lender will do what he can within guidelines  , if the value is inaccurate or under what it should be the loan is likely dead anyway.

@Dustin Sanders

A portfolio mortgage allow you to get financing which at times unavailable through the regular lending system.

All loans and lenders follow the same exact guidelines in qualifying a borrower since loans are almost always resold in the secondary markets . In order to insure we don’t have a repeat of 2007 meltdown, laws were written to so all lenders and applicants follow the same guidelines - thereby not passing on bad debt or unqualified borrowers to another lender.

A Portfolio lender / mortgage is a lender in the local markets that Keep the loan In House and never sell it , it is underwritten with less stringent guidelines or whatever lender feels comfortable with - since it will never be resold These lenders have more leniency in approving the loan since they are already vested in their markets.

Considering underwriting costs money and takes time the portfolio lender likes borrowers with multiple homes in the same area & or higher priced properties. Forget about your local BOA or Chase :)

Best of luck , please ask me for any further clarification.

Id say make sure you set a discounted rate at first to get people in the door and  treat guests  really nice so good  reviews come in, once you have the first set of reviews you can start looking at raising rates to what the market will bear,, You can always come back down in price if its not booking,, Don't bend over backwards for any  Corp AirBnb requests ( cancellations  etc )  Of late  Airbnb  always gives more credibility to the guests not enough for us hosts ..  Keep cancellation policy Strict , otherwise be prepared for last minute cancellations 

@Brian Burnham

@Brian Burnham

The flow of money seems to go off track.

If the builder and or you did not receive any funding why did the lender say he was waiting on a refund ? Refund of what ?

In regards to your deposit that you made directly to the builder than you have to work out new financing or negotiate for return of your deposits or some of it from the builder not the lender ,,

It’s possible the builder and lender may be in cahoots. They wouldn’t be the first scam tag team in this arena .

That said here is an agency to file a complaint with

Consumer Financial Protection Bureau

https://www.consumerfinance.gov/complaint/

they are oversight for any licensed lender.

If your “ lender “ was not licensed CFPB would advise you of alternative routes to take. But your story will need better timelines of who what when and where

Welcome @Maggie Lundstrom . It seems you narrowed down to markets  on your own. Many people don't even get that far. 

They are both good markets.   I have lent on deals in both locals . If its your first deal stay closer to home ,, Easier to keep an eye on property . You will also likely have a little less competition near Melbourne. Orlando has been an investor target for years now. Most deals dont last and those that do you don't want.. Find something you like do the numbers. Insure you are over the 1% rule ,, than  make an offer subject to inspection .

It would be best to get Pre Qualified Loan letter from a mortgage company  ( here at your service :)  Your offer with a Pre Qualified Letter will carry more with with broker    & seller .   And you still will have the Due diligence period if you needed to lower offer and  or back out.   Good luck ,, I know some good brokers if you need one  ..

Hi , welcome , 

what area you looking at ? I do well with mine in Florida near the beach . 

is there a draw all year long  ? 

who will do the cleaning and servicing ? 

Utilize  Airdna ( I  think there is a trial in perks on BP )   to run an analysis. 

 Advantage of STVR is that your not going to get stuck with a tenant who tries taking you for a free ride of 6 + months .. 

Disadvantage -- you will need to deal with many people a year and some likely will leave a bad review .. Part of the game .. Unless you area stays booked most of year or has extremely high rates during season - most of the time -- long term rentals win out ... 

Lastly financing STVR are also more complicated .. we have some programs that you can finance  with,,  but there are few and far between.. Good luck 

Covered Debt is a Real Estate investors best friend .   Some of my borrowers have grown their portfolios in relatively short periods of time  by  finding good properties  using OPM ( Other Peoples Money ) and MANAGING the asset and debt - 

As long as  the Asset is  able to support the debt, Do your numbers , triple check them with someone in the industry -- add some cushion ( reserves ) and you will do well..

IMO If the deal doesn't support at least a 1.70 DSCR or better Id stay away from the loan ,

IE:

                                   Net Operating Income :   $3400 

Debt Service Coverage Ratio / divided by        

                                   Debt Service                :   $2000

DSCR is 1.70 ...

Most lenders only require 1.2 in most cases - that doesnt make it a great deal , but if you know you can increase rents or drop expense to 1.7  you will be on solid ground ,, ( we all see what can happen ) 

The extra .5  lets you  stay healthy and wealthy  

If the private seller is not reporting the loan to credit agencies as many dont it will have no effect on your DTI or credit history ..( If he does report it than it will be the same ratios as a standard loan )

The only time the loan will come up will be on a tile lien search 

@Bryan Cavellier you can BRRR any size property , The most shrewd real estate investors use it for some of the most expensive buildings in the country ,, They call putting Debt on their Asset .. BRRR has been around since mortgages started . If you buy it right and have enough margin in it to make it work BRRR anything and everything ..

Hedge funds put enough Debt on companies or buildings completely cashing out leaving many times just a shell