All Forum Posts by: Jake Knight
Jake Knight has started 23 posts and replied 184 times.
Post: How are some properties in Bay Area being sold under $100K?
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
If you have the ability to do transaction history searches you can tell these low-price sales are arms-length transfers. I haven't looked at every single one of them but for the most part...
Post: New LLC, business line of credit with bad personal credit?
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
Hi Junior,
You have to ask yourself, "what do I offer this lender in return for taking a risk on me?" Are you offering collateral that would help mitigate bad credit? While a line might help you in your business, the lender is not going to give you what is essentially a blank check, if it does not make sense for them.
I underwrite business loans/lines for a commercial bank and my firm considers real estate investors to be higher risk unless they have sufficient collateral (i.e. real estate or cash) of have a long track record of success. There may be other companies who can do it, but again, consider what you are offering in return for the risk they would be taking.
Post: wholesaling in California
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
Originally posted by @Jeff Pollack:
@Jay Hinrichs, I was just projecting. I grew up just outside of Philly. I make the food rounds every time I go back. I've found a damn good place for cheese steaks in Santa Clara, but soft pretzels........Nothing.
Jeff, I'm going to Philly for the first time in two weeks. Any favorite restaurants or pretzel spots you want to share?
Post: Handwritten vs outsourcing letters
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
Originally posted by @Mindy Jensen:
Turn your handwriting into a font, so you get the best of both worlds. Quickly reproduce a handwritten letter, but have it addressed to someone specifically and seamlessly.
https://www.buzzfeed.com/nicolenguyen/how-you-do-dat?utm_term=.em8xWvxPVW#.qmx6lW6kDl
^^^This method makes it look like you wrote the letter with a marker, so if that isn't what you are looking for, a quick Google search on handwriting fonts yields more than a million results.
I tried this last night and it was super easy. Had my daughter write up the font sheet and it printed just like handwriting. I threw in some yellow paper and did a quick mail merge. I had a hard time telling it was printed... and I don't have a very good printer. Thank you for sharing this, Mindy!
Post: How to provide rent roll?
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
@Emilio Basa No problem! Good luck.
Post: What Value Have Wholesalers Brought You as an Investor?
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
Originally posted by @Nick C.:
All wholesalers are not created equal. Some offer value, some offer the same chewed up garbage that's made the email rounds. Here's another play by play @Lee Smith
him: emails out 123 Main St, active on MLS, ARV is actually $100k, needs $30k of work, he is asking $80k. He says ARV is $150k, he says it needs $15k in repairs.
2nd wholesaler: emails out same house asking $85k, says ARV is $160k, needs $10k in repairs.
3rd wholesaler: emails out same house asking $90k, says ARV is $165k, needs $5k in repairs.
Then multiple emails of the same house come out with a mixed up combination of all the numbers above.
Do these people actually succeed with this "business model?" It hardly seems sustainable.
Post: How to provide rent roll?
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
Hi Emilio,
The rent roll can be originated in excel or other accounting software. There is no standard template but will usually include some variation of the renter name, unit #, amount of rent, Bd/Ba, Sq Ft, lease terms (start date, expiration date) or maybe if any rents are past due. A rent roll would be complete for each property separately and compared to leases when possible. I might be missing something but that's the gist.
Post: First wholesale deal. Traditional mortgage. *100% BPers.*
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
Great job, everyone. Glad you were able to get a unique deal done and that you shared it with us.
@Account Closed Can you share how the end buyers were found? I'm trying to understand a little more about how I could connect with end buyers. Was it through word-of-mouth, or other marketing?
Post: Whats the strangest thing an underwriter has requestedof you?
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
Originally posted by @Joseph Weisenbloom:
@Jake Knight Hahaha Fair enough. Don't mean to totally bash underwriters they are certainly nessasary to getting the loan done. Everyone does strange things sometimes. That being said everyone here is a real estate investor so I wanted to see if everyone was dealing with this same situation.
No offense taken! I feel for the people who have to deal with terrible underwriting. I see some underwriters just get complacent and lose sight of the big picture (if they ever saw it in the first place).
Post: Whats the strangest thing an underwriter has requestedof you?
- Lender
- Elk Grove, CA
- Posts 190
- Votes 94
As someone who has been on the sales side, and is now on the underwriting side, I've seen conditions like the ones mentioned but also just as ridiculous things from the folks submitting loans. There's not a day that goes by that I don't shake my head at some incredibly asinine thing a customer or banker tries to get away with. I enjoy being on both sides of the table. Now, if you'll excuse me, I'm going to go start a thread about strange things borrowers have done on the underwriter's forum. It's called SmallerPockets.