All Forum Posts by: Matthew Jordan

@Suresh Kannan I think you should always factor in a property manager to your underwriting. A PM will save you time and enable you to grow. If the PM fee kills the deal, it might not be a good deal. If you have a few properties, it might make sense to hire a virtual assistant however you will still need boots on the ground. Sometimes what I do is hire the existing tenant to do the showings if you trust them. I pay them to show it and extra if they convince them to rent it. 

@Melvin Maxwell excellent suggestion!

To @Jeff S. point, borrowing the money will always boost your returns because you are giving away less profit. The question I think it whether you want to use private money or hard money. Private money can be great depending on the relationship you have with the person and how sophisticated they are. With hard money it is more of a process and typically a lender will require the rehab budget to be lent out through draws. I think this helps the borrower by keeping them honest as well as require a 3rd party inspector to approve the work. Even the best borrowers miss things and a 3rd party inspection helps insure the work is done properly. In addition, your private money lender could run out of money as you grow or decide they don't want to be in the business anymore whereas hard money has the pockets to grow with you. Food for thought.

@Sakib J. I'm not sure a lot of people know this but I just wanted to throw out there that eviction moratoriums only apply to federally insured mortgages (ie conventional) and not private mortgages. 

Good information. ADU's are becoming popular everyone and is a great source for increased returns should you city allow it

@Jacob Morales BRRRR is possible but I would reset expectations that you most likely won't be able to cash out all of your equity which is typical and doesn't mean it's a bad deal. I'm a hard money lender based in Texas. Let's discuss

@Joseph Vu you could refi this property at low leverage (say 50%) on a non-qm loan and get a rate in the 4% range. If you are borrowing funds at 4% and are able to achieve 7-10% in the stock market or buying other properties it's worth it. 

@Andre Fierro I am financing a duplex in San Antonio right now that meets the 1% rule. It's possible just need to find a rehab property. 

@Brent Coombs Thank you for your thoughts, I think this is very helpful. If you're an investor that can close with cash should your HML fail you, can you still write a cash offer even though you intend to use hard money?

I have been speaking with a lot of investors lately that have asked me how to articulate their offer when using hard money. Can I call it a cash offer or is doing so deceptive even if I have a proof of funds letter. I think it comes down to education and how much the seller's rep knows about hard money. It's a very competitive landscape out there and investors want to make their offer look as sweet as possible. 

INVESTORS, what do you put in your offer when using hard money? 

Hi @John Baker Are you familiar with non-qm loans? If this is an investment property I am happy to help find a solution for you.