All Forum Posts by: Ko Kashiwagi

Cold calling and direct mail tends to find the most success among small-mid sized teams. PPC and paid-ads for larger companies

Would your new conventional financing have a Pre payment penalty? If not, you can refinance again when rates come down. It would eat up costs, but you can roll cost into the loan so you don't come out of pockets and there's no guarantee rates will come down quickly for sure.

It's also worth getting a CMA on the value to see if you could refinance so that you can avoid the PMI.

1. What is the scope of your project and your experience? If it's your first one and it's a heavier rehab, it's definitely a good idea to get a GC. If you have experience and it's a light rehab, it can be a different story.

2. Verifying their information and licensing is important. Comparing bids would be a good way to do sanity checks on pricing, If they have portfolios they can show you, that will benefit you a lot as well

The two biggest challenges I hear are not realizing the condition of the property (for example, finding out the property is in a worse condition than it is) and working with contractors (not finishing the job, taking too long, etc).

Plenty of brokers/lenders that can help you! Would be best to compare by:

- Reviews

- Rates

- Fees

- Seasoning period, max LTV

- Since you're rehabbing, also check their flip program

It sounds like he's talking about backing out via contingencies on the contract like inspection or financing contingencies, where you can back out of the contract and get your earnest deposit back.

DSCR is the most common way to get around the LLC vesting and DTI requirements, although some people quit claim deed after getting a conventional financing. For BRRRRs, seasoning requirement would be a big hurdle as conventional generally has a 12 months seasoning now.

If you're focused on building relationships, the best would be to find a reputable and reviewed lender/broker and talk to the account executives/originator. As much as financing is about numbers, it's a people business at the end of the day!

I've seen local banks offer LOC on rental properties. Typically LOC has higher rates than a long term mortgage and require the line to be updated every 1-3 years.

Is it under an LLC? Conventional is an option but conventional have longer seasoning requirements and won't allow LLC vesting. DSCR would be a good option and it would be based on the rental income rather than personal. Make sure to check reviews and that you clear the seasoning requirement

This is market dependent and it can be influenced by the comparables in the neighborhood. It can also be influenced by the ratio of investors vs owners. For example, some neighborhoods have much larger percentage of owners than investors, in which case SFH may be more desirable. I've seen markets where 2 SFH are more expensive than a duplex for the same cash flow and otherwise in a different market.