All Forum Posts by: Quincy Baker

@Ray Danishyar Nice. Love to chat.

@Robert Hamilton

Hi Robert. I'm well acquainted with Maxwell. Thanks I'll see what he has to say.

@Patricia Taveras

Thank you for your reply

Can anyone tell me what the wholesaling market looks like in NC? And is it an attorneyor title company state? I'm relocating there in about a year.

Thanks BP

@Grant Doyle Have you considered asset-based lending? A hard money loan to secure the property then refinance into a conventional loan via another lender or bank. A hard money loan will carry a down-payment, higher interest rates and sometimes 1-3 points, and a shorter terms, but this would be the point of refinancing and the hard money loan only as an initial point of entry into securing the property. It may work if the cash in vs cash out numbers make sense. Otherwise, perhaps consider wholesaling as a means to generate capital for investment down-payments.

@Josh Caldwell Yes. Is this something that would be challenging for a new company seeking to refinance with a conventional loan through a bank? My business hasn't any established credit yet, I'm working on it.

@Josh Caldwell Current average occupancy rates for AirBB are around 22 days, at say $100 per day, that's $2200 p/mo. Taking into consideration market location, etc.. Less expenses: Loan repayment, other fixed codts (utilities, amenities, cable, Internet), cleaning company costs and if employed property management services. This is approximately $8800 gross per month. Although just a rule of thumb and not a formal valuation, the 50% rule suggests at least 50% ($4400) will go out in such expenses. Netting $4400. Give or take expenses. This also assumes only 22 days in rental and does not consider higher performance months during which occupancy rates exceed 22 days in rental.

@Josh Caldwell Josh, do you think hard money strategy can be employed for securing a multi unit (4 units residential) if secured with a HM lender who will refinance the original loan after a specified period of time? Im imagining there would be a heafty interest rate, deposit of some type and perhaps 1-3 point required. I'm looking to secure a 4-unit property for my first investment property for a short-term rental portfolio.

Your thoughts?

@Josh Caldwell Excellent idea for a HM route. Thanks for the tip!

Airbnb

Is it possible or practice to fund an Airbnb property using Hard money lending? If so, what do example terms and process/timeline, loan payback typically look like?

As some of you know, I'm new to the REI business focusing on wholesaling now with the intent on diversifying into buying and holding short term rentals for building an Airbnb portfolio.

Thanks BP