All Forum Posts by: Mark Munson

Quote from @Quiana Berry:

Quote from @Mark Munson:

Hi @Caden Wakim

     Read through this thread, it should be useful for what you are seeking. I operate a mortgage brokerage in Orlando, we have numerous clients that buy STRs here. Feel free to message me, I'd be happy to give you some feedback on any questions you have. 

May I also reach out? Im also looking for short /midterm play, multifam in 700k range but would like to see how this market is doing first. Thanks!

 Of course, you can message me and we can connect. Happy to help

Quote from @Sammy DeStefano:

Are you local to NC or do you predominately live in FL?

I live in FL and own a mortgage company here, but I am in NC every month and I have family there. I am speaking in Raleigh on the 9th to some Advanced Investors. I attend the Raleigh meeting every month and Charlotte. 

Hi @Sammy DeStefano

     I'm a member and vendor of the NCREIA and the main meeting is in Raleigh, NC. I suggest you attend those to meet like-minded people and potentially your investment partner. I'm happy to hop on a call and see if there is anything I can help with as you grow. 

Hi @Jess Jones

Have you joined the local REIA? I believe one of the wholesale vendors for the NCREIA is based in Fayetteville. The company names is Shortsleeves Real Estate. You can also start by looking on InvestorLift, you'll see wholesalers contact info there too. We get properties there too, so I can let you know when we get another one. Feel free to reach out if you need more advice or want to connect further.

Quote from @Kirby Baxter:

Hey @Daniel Baccarini II

Those are great questions.

The price ranges from 65K-90K.

I would like to purchase 3 minimum. 

Time line for staying the portfolio loan would depend on the growth of the area (at least I think that I am think correctly. Please correct me if I am wrong. Stay in the portfolio loan until I could cash out refinance them individually. If that is possible with a portfolio loan.)

Please provide any direction as I am still learning and trying to be a sponge and get as much information as I can possible.

Thank you,

Kirby

 Hi @Kirby Baxter

      If you borrower the rehab money for each and do them individually, they may qualify for short-term financing with the rehab lent to you as well. For example, if you purchased one for $75k and it needed $12k in rehab, that would work. Most lenders would lend you 85% of the purchase price plus 100% of the rehab money, thus the loan amount meets the minimum of $75k. You may want to go that route to complete the rehabs now and then refinance them individually or as a package after the repairs have been completed and the values have increased. 

If you prefer to do a portfolio loan now, just ask the lender the following:

1. Do you allow for partial release clauses?

2. If you sell one of the properties, what does the payoff look like?

The first question will inform you if you are allowed to sell a property in the portfolio, at any point, and not have to payoff the entire note. Assuming they allow partial release clauses, the second question will tell you what your payoff would look like should you exit one property early. Some lenders will make you pay a premium above the pro-rated release cost, like 115% of the loan amount that is allocated towards that property in the entire blanket. Feel free to reach out if you need any advice. 

Quote from @Pedro Huichapa:

Quote from @Mark Munson:

@Pedro Huichapa

      I would start with the mindset that you need to leverage your capital and not buy properties all cash. I would stay under 60% loan to value for the best rates. Commercial lenders will want to see you have experience operating a MF property, so if you don't, I would recommend sourcing a good property management company. If you don't currently own any investment properties, I'd be cautious jumping right into the deep end and buying a large MF property. You are in a very competitive market in PHX too, so make sure you are buying right or look out of state to make your money stretch further. Feel free to reach out if you want more feedback and guidance. 

Great advice. Would you buy a tired MF property, fix it up, sell/hold it, or buy a turn key and hold?

I would let the deal dictate the approach. Ideally, you would hold it, but some deals may be better suited towards flipping. You have a lot of capital to start with, so I'd diversify into various asset types and approaches. I just got back from a real estate event in Scottsdale, where I assume you are from. If you need any local connections to larger operators in your area, let me know. 

@Pedro Huichapa

      I would start with the mindset that you need to leverage your capital and not buy properties all cash. I would stay under 60% loan to value for the best rates. Commercial lenders will want to see you have experience operating a MF property, so if you don't, I would recommend sourcing a good property management company. If you don't currently own any investment properties, I'd be cautious jumping right into the deep end and buying a large MF property. You are in a very competitive market in PHX too, so make sure you are buying right or look out of state to make your money stretch further. Feel free to reach out if you want more feedback and guidance. 

Quote from @Jay Hinrichs:

Quote from @Chris Kendrick:

Quote from @Juan Lara:

The rate is too low for starters, besides that they gave you a rate without even having a property address, and as my colleague mentioned the website is very new. There are too many red flags and it sounds too good to be true. It's a scam.

The rate without property address doesnt have a red flag for me, i know tons of lenders give me quote without a property address 

then play along with them  and see how it goes for you..  sounds like your determined to get this 3% loan when NO 3% loans exist in the market today. 

Seconded. There is absolutely no newly originated 3% loans out there. This is undoubtedly a scam. 

Hey @Josias Jordan

I'm in Orlando and work on the financing side with real estate investors. I'm also part of a few meet ups and REIAs, so feel free to connect. 

Quote from @Connor Benn:

Most wholesalers I’ve seen have offered properties under hard money/cash only contingencies. Does acquiring wholesale properties through regular financing, either QM or Non-QM loans for example, even exist?

I work with a lot of wholesalers here in FL and have financed hundreds of wholesale deals with hard money for years. Like others have said, it just depends on the timeline to close and whether or not the property will pass an inspection to qualify for certain types of more conventional financing. Additionally, you will want to make sure your lender will fund the assignment fee if there is one or if they are okay underwriting the deal if there is a double closing. If there is a double closing, you may need the unexecuted warranty deed from the A to B contract for your underwriter. Reach out if you need advice.