All Forum Posts by: Mark Munson

Hi @Joseph Micheal

      Many hard money lenders will have an issue with this. In the event you default, it makes it very difficult for them to liquidate the property to the largest amount of buyers, as most buyers wouldn't be able to get a loan for it. If I were you, I'd also get with the city/county to see what re-zoning looks like, as you could be on the hook if you buy it and then the municipality says you can't operate it as it sits. 

What you are referring to is the strategy that is popular within wholesaling at the moment called "Agent Outreach". The wholesalers aren't so much trying to get your on market deals, they are more so trying to form relationships with agents that can bring them the deals prior to hitting the market. They are basically looking for you to act as a lead funnel and use your position as realtor to get in with the motivated seller. I could articulate further, but they are essentially just trying to get to the deal before it hits market via your relationship. It is a highly effective play if you take the time to teach the agent or broker, some of the largest wholesalers in the country have been doing this for years. If you ever want to talk about wholesaling in Orlando, let me know, as that is where I am located and very familiar with the market and other wholesalers. 

Brokers/Agents that are listing on MLS don't tend to offer discounted properties. They get listed at the current value, thus not really a deal for an investor. Wholesalers don't necessarily work with agents/brokers, more often times than not they are direct to seller, thus cutting out the fees from an agent or broker. The wholesaler is also offering a better price because they negotiated a lower value already, whereas agents/brokers aren't doing that or incentivized to offer the property at a discount. We teach our seasoned investors (I own a hard money brokerage) to cut everyone out and go direct to seller themselves. We even offer marketing services and classes to learn how to do that. That avoids every middleman, including both the wholesalers and agents.

Hey @Jonathan Orr

     Message me if you can, I'll connect you with a client of mine who does a lot of self-storage, he can provide proformas, etc. 

Hi @Biju Kurup

You need to talk with a lender or broker to understand the lending limitations in regard to the BRRRR strategy, less so an investor. To do it correctly, you need to buy deeply discounted properties. When you go to refinance, the maximum cash-out amount will more than likely be 75% of the appraised value. So, if you are already at 70-75% of the ARV on the short-term loan, you'll have no room to get your money out. Also, you will likely need to own the property for minimum of 6 months to fully cash-out, as that is the standard seasoning period for DSCR loans. Some lenders can do 3 months seasoning, but they tend to only do that for borrowers who also utilized their short-term financing on the rehab loan (it's called an "On Platform Refinance"). Feel free to reach out if you have any questions or need advice. Best of luck!

Hi @Arthur V Bernestine III

     I've never heard of a PML looking at a borrower's debt or debt-to-income ratio. And most aren't set up to pull credit, or don't look at it in general. It tends to be true asset based lending or based upon performance that you can show the lender via a pitch deck or portfolio on what you've done in the past.

Hey @Edgar Sanabia

I'm in Central FL as well, so I'd suggest attending your Tampa REIA or Orlando and offering your time and effort to any investor that is willing to teach you what you are looking to learn. I know an investor that offered to paint another larger investor's fix and flips for free to learn, and he subsequently went on to JV with him that led to 5 Fix and Flips in one year. Bring value and you'll get value in return. You may offer bird-dog services, meaning you'll door-knock or drive for dollars to find an off-market deal for an investor and ask for an equitable share of the deal in return. We do that with new investors often, they find the deal we bring the experience and capital. Feel free to message me, happy to see how we can help one another.

Hi @Wendy Martin

      I would hold it if you can, as you'll make more money over the long run by holding at least a few years. If you want cash in hand today, then I would take out a small loan relative to the overall value and get it rented. You can put a little money in your pocket and have passive income every month. Feel free to message me, I'd be happy to walk you through each scenario and give you any advice I can. I'm in Central FL and we lend/buy in Jax too, so I know the market well. 

Hi @Todd Mason

     Like others have said, I'd start with a market near you and dial in a proof of concept that can be repeated in other markets after getting your feet wet. If you haven't already, I'd join your local Real Estate Investors Association. Network with other local investors and get first-hand experiential knowledge from them, as well as resources that may be helpful in your journey. Feel free to message me, I'd be happy to take out a few minutes and give you whatever feedback I can. Best of luck!

Hi @Kenneth Bentley

       You can use the tab up top to search for lenders on BP, under the "Build Your Team" tab. I would call as many as possible, as you'll realize not all lenders and loan officers are well-versed in investing themselves, so they may not be able to give you great guidance on which option you should choose. I would ask whomever you are speaking to if they are investors themselves, as anyone can read you rates and terms of loans, but they don't all give coaching that you may need to determine the best strategy. Feel free to message me, I'll give you some direct contacts if needed.