All Forum Posts by: Nghi Le

These days, the Greater Seattle Area has an average of 3 real estate meetups per night, but what about those who can't attend evening meetups due to work schedule, family obligations, etc? Then this is the perfect meetup for you!

Come eat and network with fellow real estate investors during lunch. Meet new contacts or catch up with old ones. Most of the best deals or opportunities in real estate are due to positive relationships. This is a chance to create new relationships and share ideas about investing in real estate. There are no sales or presentations at this meetup, just pure networking (and food!).

We have a new spot this month at the first and oldest phở restaurant in Seattle. We've had a few requests for phở as a lunch spot, but were waiting for the weather to get a little colder first. We have half of the restaurant set aside for us on the left side as you walk in. Parking at the restaurant is limited, but you can find street parking a block or two away.

I have to give the restaurant an accurate headcount ahead of time, so please RSVP to the meetup here:

https://www.meetup.com/RealEstateAtWork

Here are a couple of pictures of our past meetups:

Keywords: Burien, Normandy Park, Renton, Kent, Des Moines, Seatac, Federal Way, White Center, Tacoma, Auburn

Seems high. I'm seeing commercial rates at 5.25% right now on a 5-yr loan on a 25-yr am with no prepay and up to 1pt. I'm from WA and got these terms in IN, but I know that it's also available in OH and about 20 other states.

@Aja Yasir @Caleb Heimsoth

For hard money, I usually see 10-20% down on residential (1-4 units) and 20-35% down on commercial (5+ units).

Sounds like you might be able to just get a commercial loan on it with 20% down, assuming you can close in 45 days. Would be a lot cheaper than hard money (5-6% interest), and you'd be able to employ the BRRRR strategy if it doesn't have prepayment penalties. But you'd have to do the rehab all out of your own pocket.

While it's true that HMLs can lend to both individuals and entities, you might be investing in a state that restricts HMLs to only lend to an entity.  I know that LendingHome does consider NC to be an "Entity Only" state.

@Jason D. LendingHome also classifies FL as an "Entity Only" state as well, although it might only be in Dade County.

These days, the Greater Seattle Area has an average of 3 real estate meetups per night, but what about those who can't attend evening meetups due to work schedule, family obligations, etc? Then this is the perfect meetup for you!

There are no speakers or pitching, just pure networking. Whether you're working a day job in the area or are lucky enough to work in RE full-time on your own schedule, come join us for lunch and networking.

We had about 80 people in attendance last month in the same location and raised $650 for charity through the meetup fee.  This charity was brought together by a few BP stars, such as Jay Hinrichs, Brian Burke, Chris Clothier, Brandon Hall, etc.

The fee this time is $15/person, which will cover the food and contribute to the charity. We'll take care of the fee for the location.

We need you to RSVP (and pay) on the meetup page. We have to provide a guest list for the front desk to allow people in since this is private property.

https://www.meetup.com/RealEstateAtWork/events/254750616/

Keywords: Redmond, Kirkland, Woodinville, Renton, Factoria, Newcastle, Mercer Island, Issaquah, Sammamish, Factoria, Tacoma, Everett

Pictures from last month's event:

Depends on what the commercial terms are, and they're a bit all over the place sometimes.  The "hard money" terms vary as well.  With longer-term loans, hard money or commercial, underwriting is more of a headache regardless.  In the end, it just boils down to the lender.  Hard money still tends to close faster than banks though, but it's usually 3-4 weeks for these type of loans (as opposed to the 1-2 weeks for rehab loans).

There are hard money lenders out there who also have long-term rental programs as well. Lima One and LendingOne are two big players in that space. But they'll charge you a couple of points on top of that rate and have prepayment penalties.

I usually prefer commercial loans though (from a bank). Sometimes they can be cheaper than conventional loans, but underwriting is easier. Based on cashflow and DSCR instead of DTI.

You're referring to regular contractor 1099s.  A 1099-INT for interest paid is a $10 minimum, not $600.

https://www.irs.gov/forms-pubs/form-1099-int-interest-income

I always get a 9-month or 12-month loan, even for a 2-week rehab.  There are just too many factors outside of your control in this business.  Also be mindful of extension fees; the good lenders will do 1pt for every 3 months or 6 months.

@Sam Shueh The 70% you're talking about is based on LTC or the purchase price.  @Whitney Breedlove is basing her ratio on the ARV, which might be high leverage on the cost of the project. What @Jason D. said is true though; a lot of these terms are limited to the west coast, specifically in CA.  Those terms haven't crept up to WA yet.  Although I am closing on a deal in KY next month at 7.14% for hard money, so I guess it depends.  But Whitney, keep in mind that more favorable rates and terms are given for investors with more experience, good credit, good liquidity, and lower leverage (i.e. higher down payment).

In TX, for someone without experience, I've seen 10% interest and 3pts (or 12%/2pts or 14%/1pt) for 6-9 months at 90% LTC.