All Forum Posts by: Rex Celle

@Jeanne Davis what is the strategy for the property and how does the P&L look. I would just make sure you are comfortable with the current or projected cash flow before making a final decision to lend. Otherwise it’s a good move

@Timothy Ray I own portfolio of properties in Georgia that are all being managed by property management companies that charge 6% to 10% of the rental income. Because I live in New Jersey, I leverage property managers from companies that are well-established in the field to avoid all the headaches that come with being a landlord. My advice is to choose whether or not you’re categorizing yourself as an investor or a landlord. If your goal is to accumulate a rental portfolio, I would definitely leverage property managers so you can focus on your investment strategies rather than day-to-day operation of Property Management. What to look for is credibility, Technology where the company would provide a portal for the investor to monitor activity, and process of onboarding, managing, and exiting tenants. You can also negotiate the 10%, I had a property management company in Atlanta that honored 6% deal since I purchased through Roofstock. Hope this helps

@Hossam Elaskalani the non-QM deal doesn't sounds right to me. There's no easy way to invest in rental properties when financing these deals. If you plan on growing a portfolio of rental properties, go to a small sized local bank, hard money lender, or a credit union, and obtain a commercial loan which normally would require 20% to 25% down with likely a higher interest rate than 5%. Run your P&L and see where you land after all operating costs/expenses, then make a decision. Consider also creating an LLC as your rental portfolio holding company rather than under your name. hope this helps you

@Kam Lau

Your Example:

Purchase price $80,000

Rehab budget $30,000

Total project cost $110,000

Hard Money Lenders I use will fund 90% of the total project cost, which in this example would require $11,000 down payment. My lenders look for the deal to be at 65% to 70% LTV (loan to value). If the ARV is at $150,000 and the loan amount is $99,000 then your LTV is at 66%. Pretty good deal if this is a real example. There are some Hard Money Lender‘s that will fund 80% of the purchase price and 100% of the construction budget. Keep in mind for Hard Money lending, they have requirements and processes to follow such as appraisals, repair analysis, liquid reserves, preliminary testing if there is a well or a septic system on the property, etc. etc., these all cost money prior to closing.

Private Money Lenders in general are only interested in one thing, the Investor’s ability to pay the monthly obligation and pay off the entire loan inside one year or less. Some may require a few things mentioned above, but there is less red tape overall, plus the ability to close fast is through this finance source.

Hope this gives you a little more insight

@James Galla good point, I'll check that is morning. There may be a couple of houses on the block that do not have driveways so this may not be the only one. I need to understand how much this would impact the ARV before making a decision.

My GC and I are visiting a property at 10 AM tomorrow that we are looking to potentially flip, however my concern is that there is only "street parking", no driveway. It is located in a desirable location, but want to hear your thoughts on how the inconvenience of no parking in the property can impact ARV.

@May Emery thanks May great perspectives. Interested to hear strong pitch points in the direct mailers. I’ve received them before but was never convinced to actually consider selling any of my properties. Selling points for me would be: no inspection or appraisal, “as is” purchase, speed of transaction, fair price, etc. it would be great to hear some thoughts around key points to spark reaction from potential owners.

@T B Williams thanks TB. I sent you a direct message. Let’s chat

@Dan Barli I currently have a rental portfolio in GA and in NJ. Looking to flip this year, but I see that the Net profit going through RE agents for properties on the open market is mostly a bust. Need better prices for a good return. How about you?

@Dan Barli I don’t do direct mailings, I haven’t looked into that business model yet but I will. I’m from Clifton too btw, nice to meet you